Ryan is a bow hunter. So where does he focus his real tax cutting prowess? On archery taxes.
The American Jobs Creation Act of 2004 has a provision that includes a tax on arrows of 12%.
Ryan immediately attempted through legislation to freeze that tax at a maximum of 39 cents per arrow (with adjustments for inflation) This freeze is a big deal. When one does the math on what the Act tax calls for and Ryan's ballsy move for him and his fellow bow hunters, the change in the tax is mind blowing :
Here's how the Act reads (my bold):
(b) Arrows.--Subsection (b) of section 4161 (relating to bows and
arrows, etc.) is amended by redesignating paragraph (3) as paragraph (4)
and inserting after paragraph (2) the following:
``(A) In general.--There is hereby imposed on the
sale by the manufacturer, producer, or importer of any
arrow, a tax equal to 12 percent of the price for which
``(B) Exception.--In the case of any arrow of which
the shaft or any other component has been previously
taxed under paragraph (1) or (2)--
``(i) section 6416(b)(3) shall not apply, andHere's what Ryan wanted to do to it (my bold):
``(ii) the tax imposed by subparagraph (A)
shall be an amount equal to the excess (if any)
(a) Repeal- Subsection (b) of section 332 of the American Jobs Creation Act of 2004, and the amendments made by such subsection, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such subsection and amendments had never been enacted.
(b) Tax on Arrow Shafts- Paragraph (2) of section 4161(b) of the Internal Revenue Code of 1986 (relating to arrows) is amended to read as follows:
`(A) IN GENERAL- There is hereby imposed on the first sale by the manufacturer, producer, or importer of any shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly--
`(i) measures 18 inches overall or more in length, or
`(ii) measures less than 18 inches overall in length but is suitable for use with a bow described in paragraph (1)(A),
a tax equal to 39 cents per shaft.
`(B) ADJUSTMENT FOR INFLATION-
`(i) IN GENERAL- In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of--
`(I) such amount, multiplied by
`(II) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting `2004' for `1992' in subparagraph (B) thereof.It appears most arrows sell for between $40 and $150 at retail per set At a tax of 12%, that's a per arrow tax of somewhere between $.80 to $3.00. The tax would, of course,be lower at the manufacturer's level but still far, far below what Ryan wants, a maximum tax of only 39 cents.
I am all for tax reductions, especially ones that reduce taxes to pennies from dollars, but does anyone seriously think Ryan would have focused on this tax, if he wasn't a bow hunter?
Bottom line: Ryan attempts to take care of his own, first, last and always, when it comes to serious tax cuts. The rest is babble. Typical congressman.