With the deletion of the popular Hearing Protection Act and SHORT Act provisions from H.R.1 on Friday, Republican lawmakers switched to a backup plan.
Heading into the weekend, the old Section 70436, “Elimination of Tax on Certain Devices Under the National Firearms Act,” was deleted from H.R.1, better known as the "One Big, Beautiful Bill," by the ostensibly non-partisan Senate Parliamentarian at the urging of Democrats on Capitol Hill.
While Dems and anti-gun groups chest-bumped and celebrated, pro-2A groups quickly issued a rare joint letter calling for the Parliamentarian to either be overruled or for the NFA taxes on suppressors and short-barreled firearms to at least be zeroed out.
The statement:
By Sunday, when the latest 940-page text of H.R.1 was released by the Republican-controlled Budget Committee, Section 70436 had been restored but read much differently than in the previous version. While the new language drops both the making and transfer taxes on suppressors, short-barreled rifles, short-barreled shotguns, and AOWs, it keeps them under NFA control and regulation.
It's short (pun intended) like being a contestant on a game show and, instead of winning the jackpot earned fair and square, being sent off with only the home edition of the game as a parting gift.
The new language:
While the sound of "free tax stamps" for everything but machine guns and destructive devices feels like a big win of sorts, it still falls far short of the promised NFA reform of the Hearing Protection and SHORT Acts. Further, as the mechanism to tax such items remains on the books, a future simple reconciliation bill by a Democrat-controlled Congress could just bump the taxes back up and significantly increase them.
U.S. Rep. Andrew Clyde, a Georgia Republican and FFL holder, has been a driving force behind the scenes in the debate to get the reforms into H.R.1. He cautioned that the fight isn't over.
"Of course, I also want the NFA registration eliminated, as it is inseparably linked to the tax. That’s why I’ve fought tirelessly for months," said Clyde. "Yet we can’t pass up an opportunity to end the 91-year-old unconstitutional taxation under the draconian NFA. This rewrite is another shot at this provision. It’s not perfect, but it’s far better than getting zero 2A victories."
Clyde said the move, should it be successful and make it to law, could set the stage for a more groundbreaking legal challenge.
"I strongly believe eliminating the tax provides a highly credible basis to challenge the NFA registration in court, because with the taxation repeal, there is no longer a foundation for the registration," said Clyde. "The registration database is the method used by the government to account for the tax paid on each firearm by the serial number of the firearm. That’s why they are inseparably linked. No tax, no foundation for a registration database."
The Senate narrowly passed a 51-49 procedural vote to hold debate on H.R.1 on Sunday, which will unfold on Monday following a move by Democrats to force the entire bill to be read prior to moving forward. Then there will come a series of proposed amendments from both sides that could see Sec. 70436 changed further. Once passed by the Senate, the bill would still require House concurrence due to all of the changes since it left that body.
Republicans hope to have the measure on President Trump's desk to sign by July 4.
