Oregon arrow maker shoots back at pork barrel critics

The financial bailout bill's tax break on toy arrows became a much-maligned example of pork-barrel politics this week, as noted here.

The Associated Press had this follow-up on the company that was highlighted in many of the reports:

Wisecracks aimed at a $2-million toy arrow tax break slipped into the financial bailout package are leaving some arrow makers feeling like they're wearing targets on their backs.

"Rose City Archery does not make one penny on this," says Jerry Dishion of Myrtle Point, Ore., who is president of one of the leading toy arrow companies. "We do not save one penny." It's the kids -- Boy Scouts, school groups, Christian campers -- who will benefit, says Dishion, who feels he's suffering the slings and arrows of outrageous media coverage.

The tax break undoes the toy tax [about 40 cents] that manufacturers say was meant for more expensive archery arrows and is untenable for play arrows costing only about 30 cents apiece. Many youth programs have discontinued archery because of the tax, says Dishion.

Oregon Sens. Gordon Smith, a Republican, and Ron Wyden, a Democrat, introduced the tax provision in each of the last two sessions of Congress. But neither sought to have the provision included in the bailout package, their offices said.

Smith voted in favor of the bailout bill, while Wyden opposed it.

OK, but doesn't Rose City Archery win if the repeal of the tax means it sells more arrows?

Just askin'. . .

Comments

[LPB]

Big deal!

All Federal Excise Taxes (and don't forget what you pay in FET when you calculate your annual tax burden for the year) are arrogant takings by the government, that say, in effect, "We don't think you really need these things, so we're going to charge you a little bit extra for us to spread around as we see fit".

[GEORGE]

Why the hell was there a tax on arrows in the first place?

[KT]

Good one. Congress bails out Wall Street for $700B (probably more), and people are aghast that politicians' votes are bartered with earmarks (which happens in every bill in every session)...and we focus on one of those thousands of earmarks with a value of approx. $0.002 billion (and one that actually benefits kids, no less).

Way to keep your eye on the ball.

[danove]

One of the problems about listening to people who say they are going to stop government waste is that they trot out ridiculous sounding examples which, if examined in depth, probably have or were intended to have some value (see Golden Fleece Awards.) Since most voters don't check things out the politician gets a few votes and outrages the populace by misleading. If someone wants to attack Federal budget items they could start with Defense spending which is more than all other Federal expenses combined. (Although the recently passed bailout is almost as large.)

[dave404]

Rose City Archery's website lists the price for 6 children arrows at $20 + s/h ($3.30 apiece). This is hardly 30 cents apiece. The excise tax is 12% on arrow components and 12.4% on completed arrows. Thus if a toy arrow cost 30 cents the excise tax would be 4 cents, not 39 cents. The arrow would have to cost $3.29 for the tax to be 39 cents. Almost exactly what a half-dozen of Rose City wooden children arrows sells for!

The excise tax is leveled for guns, ammo, bows and arrows and goes towards a federal Wildlife fund. A kids bow is 30# or less and thus not intended for hunting so there should be no excise tax (as was argued and approved for exemption in legislation in 2003), BUT!, not ALL kids arrows were exempted from the exices tax in the bailout bill! Only WOODEN arrows! So, if the point of the legislation was to undo a tax wrong, why did the "correction" only rescue the wooden arrow to the exclusion of laminated, aluminum or other "toy" arrows? Don't be fooled, this legislation was the government intervening in the arrow marketplace by giving the maker of wooden arrows an unfair and unjust economic advantage over other manufacturers who produce children arrows from other materials or in aother ways!

Anybody want to do the follow up and see if the price of childrens' arrows from Rose City Archery has dropped now that the bill is law?!

[Tim duncon]

FLAT TAX.

Need I say more ?
Everyone is treated equal.

[Richard Friedman]

This is an earmark the hypocrite John McCain decided to vote for. Let's not hear any more baloney from this old clown on the subject of earmarks.

[vic]

dave404 - The 39 cents per shaft is correct - the 12.4% excise tax on shafts, nocks, points, and vanes, and 12% on completed arrows, was replaced effective April 1, 2005 by an excise tax of 39 cents on shafts. Actually, it is higher, since there was an inflation adjustment.

Title 26, Subtitle D, Chapter 32, Subchapter D, Part I, Section 4161
(2) Arrows
(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.

[Bust Trusts]

At $0.39/arrow, each 18 inches long, it'll take about 500 million miles of arrows to pay for the Wall Street bailout, or enough to go around the world 20,000 times. I predict that we're going to see a lot of arrogant taking in other categories, just to keep Paulson's buddies from going broke.

[Archer Daniels Midland]

The arrow tax demonstrates how the government gets its nose into every nook and cranny - and always seeks out minorities who can't defend themselves.

Would the government dare do away with the tax deduction for having kids?
The mortgage interest deduction? The capital gains exclusion for homeowners? Not a chance.

But they're quick to impose niggling taxes on the little guys. Democracy is supposed to protect minority interests from the mob. Oh well, that's right, we have a Republic. Shhh, don't tell anyone.

Last year, my government invented six new taxes for me to pay, increased four others, and decided that I should pay a few more that don't apply to me. We won't mention the illegal taxes they've imposed. So long as its MY ox being gored (I'm the guy behind the tree), no one seems concerned.

[Angie]

It's not about the arrows, it's about they had a few days to get this bill off the ground and voted no til they had their pork in it. They fact that everyone seems to have added pork is disgusting, because of what this bill represents -Waste.

[The Taxman]

The tax on shafts is now $0.45 per shaft. I think we can cover 'free' health care by increasing the tax on arrow shafts!