To amend the Internal Revenue Code of 1986 to require that the payment of the manufacturers' excise tax on recreational equipment be paid quarterly.

Mr. Speaker, this legislation is long overdue. For years, there have been inconsistencies in the manner in which manufacturers pay their taxes. Under current law, firearm and ammunition manufacturers pay excise taxes into the fund on a bi-weekly basis. All other manufacturers pay on a quarterly basis. This legislation will change this inconsistency and bring a little commonsense into our crazy tax system.

I am pleased to be a cosponsor of H.R. 510, to amend the Internal Revenue Code to require that the payment of the manufacturers' excise tax on recreational equipment be paid quarterly. The frequency of tax payments for the firearm and ammunition manufacturers is a burden on the industry. In fact, some manufacturers are forced to secure short- term loans to pay their taxes, thus incurring additional expenses and adding to administrative overhead. The end result is that money is diverted away from core business areas to finance tax payments.

Through this legislation, firearm and ammunition manufacturers will now be able to reinvest more funds into researching and developing new products, purchasing new manufacturing machinery, and increasing marketing and outreach to the hunting and sport shooting community. The federal government will get their taxes, on a quarterly basis as it does from every other manufacturer, so no revenue will be lost.

I urge my colleagues to support the Firearms Excise Tax Improvement Act.