The US federal government collected US$20.6 billion (S$28 billion) in taxes on alcohol, tobacco, firearms and ammunition in fiscal year 2009, up 41 per cent from the previous fiscal year, according to the annual report of the Alcohol and Tobacco Tax and Trade Bureau.
Part of the US Treasury Department, the TTB credited most of the US$6 billion rise in revenues collected to the increased taxes on the tobacco industry as a result of the Children’s Health Insurance Reauthorization Act passed in February 2009. There was also a spike in tax collection from the sale of guns and ammunition, said the report from the agency that has an annual budget of US$99 million.
In October 2009, firearms and ammunition excise tax collection climbed 45 per cent from the previous fiscal year, the greatest annual increase in the firearms tax revenue in the agency’s history, the report said. By comparison, the average annual increase for fiscal years 1993 to 2008 was 6 per cent.
A Gallup Poll conducted in early October 2009 said one possible explanation for the surge in gun and ammunition sales could be that more than 50 per cent of the Americans who owned guns and some 41 per cent of all Americans believed that President Obama would ‘attempt to ban the sale of guns in the United States while he is president.’
Obama, who supports reauthorizing the ban on assault weapons but has not made a push to do so, did sign a law that included allowing people to bring guns into national parks this past February.
Source: Stratis Times via Reuters.