Cotton, Colleagues introduce bill to repeal tax on certain firearm purchases

Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced the Repealing Illegal Freedom and Liberty Excises (RIFLE) Act, legislation that would remove a burdensome tax imposed on firearms regulated under the National Firearms Act.

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Senators John Barrasso (R-Wyoming), Marsha Blackburn (R-Tennessee), John Cornyn (R-Texas), Kevin Cramer (R-North Dakota), Steve Daines (R-Montana), Deb Fischer (R-Nebraska), Cynthia Lummis (R-Wyoming), Roger Marshall (R-Kansas), Markwayne Mullin (R-Oklahoma), Pete Ricketts (R-Nebraska), Marco Rubio (R-Florida), and Rick Scott (R-Florida) are co-sponsors of the legislation. Congresswoman Ashley Hinson (Iowa-02) introduced companion legislation in the House.

“Law-abiding Americans who exercise their Second Amendment rights should not be subject to unnecessary taxes and restrictions preventing them from doing so. Passed into law in 1934, the National Firearms Act needs to be amended. Our legislation will remove the red tape that places an undue financial burden on would-be gun owners,” said Senator Cotton.

“The federal government should not be placing financial barriers on the inalienable rights of Americans. This unconstitutional tax on certain firearm purchases is a direct violation of the Second Amendment and must be repealed. As the Biden Administration and Democrats push proposals that unfairly target law-abiding gun owners, I will continue to stand up for Iowans’ right to keep and bear arms,” said Congresswoman Hinson.

Text of the legislation may be found here.

Background:

• The 1934 National Firearms Act (NFA) regulates short-barreled shotguns and rifles, fully automatic firearms, suppressors, and a catchall category of explosives. In addition to background checks and registration, NFA regulated items have a $200 tax.

• The ATF has acknowledged the tax was intended “to curtail, if not prohibit, transactions” of firearms. The $200 tax, unchanged since 1934, is equivalent to $4,648 in today’s dollars.

• Since 2018, ownership of NFA regulated items have grown by more than 250% as more sportsmen, shooters and firearm enthusiasts exercise their Second Amendment right.

• The RIFLE Act does not modify the current checks and registration; it solely removes the federally mandated financial burden on law-abiding gun owners.

• The legislation is endorsed by the National Rifle Association and the National Shooting Sports Foundation.

State might tax canceled student loan debt

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Arkansas is one of seven states in which canceled student loan debt may be treated as taxable income, but whether it is, student loan forgiveness is expected to create a tax burden shift from the borrowers.

Recently, President Joe Biden announced plans to cancel up to $20,000 in student loan debt, depending on borrowers’ income. Pell Grant recipients qualify for up to the total amount in relief, while other borrowers can cancel up to $10,000 in student loan debt. Eligible borrowers must have an annual income of less than $125,000 or $250,000 for married couples or heads of households.

According to Federal Student Aid, an office of the U.S. Department of Education, nearly 8 million borrowers may be eligible for relief automatically because the agency already has relevant income data. By early October, an online application is expected to become available at studentaid.gov, allowing borrowers to apply for the relief. The application deadline will be Dec. 31, 2023.

https://talkbusiness.net/2022/09/state-might-tax-canceled-student-loan-debt/

Private School Tax Credit Measure Clears Senate Revenue & Tax Panel

by George Jared (gjared@talkbusiness.net)

A program that would create a tax credit scholarship for impoverished students to attend private schools was passed Wednesday (April 14) during the state Senate Tax and Revenue Committee meeting.

SB 680, also known as the “Philanthropic Investment in Arkansas Kids Program Act” will be capped at $2 million and will help up to 250 students in the state each year, bill sponsor Sen. Jonathan Dismang, R-Beebe, told the committee.

For a student to qualify, their family must have an annual income that is less than or equal to 200% of the federal poverty guidelines. The credits and application process will be handled by the Arkansas Department of Finance and Administration (DF&A). Credits will be given on a first come basis. It will cost DF&A about $100,000 per year to handle the program, according to estimates. Taxpayers who donate to the program will get an off-setting tax credit.

https://talkbusiness.net/2021/04/private-school-tax-credit-measure-clears-senate-revenue-tax-panel/