Should Taxes on Guns & Ammunition be Increased? (H.R. 5103)

What is H.R. 5103?

(Updated July 13, 2021)

This bill would increase the federal excise taxes on guns to 20 percent and ammunition to 50 percent. Revenues from the increased excise tax would be allocated to law enforcement and public safety grant programs, including programs for research on gun violence and its prevention. In effect, this would roughly double the tax on firearms and quintuple the ammunition tax.

The bill would also:

• Increase the occupational tax on importers, manufacturers, and dealers in firearms and the transfer tax on firearms;

• Modify the definition of “firearm” for excise tax purposes to include a semi-automatic pistol chambered for cartridges and configured with receivers commonly associated with rifles and capable of accepting detachable magazines.

Argument in favor

It should be more expensive to buy guns and ammunition so fewer can afford to buy and use firearms. By raising taxes on guns & ammo this bill would also increase government revenue.

Argument opposed

By raising taxes to make guns and ammunition less affordable, this bill would make it harder for working class families to exercise the Second Amendment right to self defense.

Impact

People who buy guns and ammunition; and the federal government.

Cost of H.R. 5103

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Danny Davis (D-IL) introduced this bill to increase federal taxes on firearms and ammunition:

“Gun violence in America has reached epidemic proportions and we cannot, as a nation, any longer tolerate the on-going social and economic costs of inaction. Gun violence is a daily reality for America and, in particular, for urban cities like Chicago. The crisis should outrage us all. This legislation is a pro-active approach to reducing gun violence by using proven preventive programs which have been starved for funds until now. As part of a comprehensive, multidimensional strategy to reduce gun violence, this legislation closes major loopholes in tax law and lays out an equitable, long term, sustainable strategy to provide the requisite resources.”

Grover Norquist, the president of Americans for Tax Reform, expressed ATR’s opposition to this bill saying “Democrats are seeking to tax guns out of existence” and adding:

“Now that the GOP tax cut has benefited 90% of Americans, the one danger facing the Republican Congress is the ‘intensity gap.’ The Democrats have decided to solve this problem for Republicans by targeting gun owners and taxpayers in the same futile gesture: a threatened tax on guns.”

This legislation is supported by 12 cosponsors in the House, all of whom are Democrats.

Media:

• Sponsoring Rep. Danny Davis (D-IL) Press Release
  
• Chicago Sun Times
  
• Americans for Tax Reform (Opposed)