In Wake of Marlin Firearms Factory Closing,
Firearms Industry Calls on Senators Lieberman
and Dodd to Support Firearms Excise Tax Reform Bill

NEWTOWN, Conn. -- Following last week's surprise announcement that the Marlin Firearms Factory in North Haven (Connecticut) was leaving the state and taking with it hundreds of jobs, the National Shooting Sports Foundation (NSSF) – the Newtown-based trade association for the firearms industry – renewed earlier calls for Sens. Joseph Lieberman (D-Conn.) and Chris Dodd (D-Conn.) to co-sponsor bi-partisan legislation (S. 632) that would rectify a longstanding inequity in the collection of the firearms and ammunition excise tax (FAET). The FAET is a tax that firearms and ammunition manufacturers pay on the sale of their products. This tax is used to fund wildlife conservation in America. The legislation would simply change the payment schedule from bi-weekly to quarterly, which is more business friendly.

“Connecticut is the birthplace of America’s firearms industry and as such it is troubling that our senators continue to sit idly by while major employers in the state like Remington, Winchester and now Marlin leave, taking with them hundreds of well-paying jobs that Connecticut workers relied upon to support their families and pay taxes,” said NSSF Senior Vice President and General Counsel Lawrence G. Keane. “With the closing of Marlin Firearms, now would be a good time for both Connecticut senators to champion S. 632, bi-partisan, pro-growth and commonsense legislation.”

NSSF estimates that just shifting to a quarterly payment schedule will free up approximately $22 million dollars annually for manufacturers to invest in new plants, equipment and product designs.

“A financially strong and growing firearms and ammunition industry will generate greater excise tax revenues,” continued Keane. “This shift would help manufacturers remain competitive in an increasingly global economy. We urge Sen. Lieberman and Sen. Dodd to provide the leadership this state needs and co-sponsor this legislation.”

S. 632 is sponsored by Sen. Max Baucus (D-MT), the chairman of the powerful senate finance committee, and has 18 co-sponsors. Its companion bill (H.R. 510) in the United States House of Representatives is being sponsored by Congressman Ron Kind (D-WI) and has 110 co-sponsors. Rep. Rosa DeLauro (D-CT) is the only member of the Connecticut delegation co-sponsoring the bill.

The concern that NSSF has posed to the Connecticut senators is specifically rooted in the timing of the tax collection, not the amount of the tax collected (11 percent on long guns and ammunition and 10 percent on handguns). Currently, firearms manufacturers must pay FAET bi-weekly as opposed to the quarterly taxes paid by other industries that also support conservation. This payment schedule forces many firearms manufacturers to borrow money to ensure on-time payment, and industry members spend thousands of man-hours administering the necessary paperwork to successfully complete the bi-weekly payments – money that is due long before manufacturers are paid by their customers.

-30-

About NSSF

The National Shooting Sports Foundation is the trade association for the firearms industry. Its mission is to promote, protect and preserve hunting and the shooting sports. Formed in 1961, NSSF has a membership of more than 5,500 manufacturers, distributors, firearms retailers, shooting ranges, sportsmen's organizations and publishers. For more information, log on to www.nssf.org.