Bailout Bill Baloney

I was skimming through HR 1424 (apparently I have no life), when my eyes were drawn to the words WOODEN ARROWS. Since HR 1424 is the “Emergency Economic Stabilization Act” – the Bailout Bill – it seemed peculiar to be reading about wooden arrow shafts. The entry was not about just any kind of arrow. Rather, it was specifically about wooden arrows designed for use by children. I tried to make the connection between children’s arrows and the country’s financial crisis. In so doing, I conjured an image of rogue children holding lenders at arrow-point, demanding sub-prime loans for their parents.

Of course a child’s bow and arrow have absolutely nothing to do with failed mortgages. The fact that our legislators (actually, staffers of our legislators) affix onto bills all kinds of pet projects, which have nothing to do with the main topic of the bill, is a testament to how far we’ve strayed from the original intent of our founding fathers. Yet, there are countless miniscule pet projects which did not make their way into the bill. How in the world did this one, and why?

Section 503 of HR 1424 provides for a tax exemption for these children’s wooden shafts. Apparently, up to now, these arrows have been taxed at 39 cents per shaft. With this all-important amendment to the tax code, “any shaft consisting of all natural wood with no laminations or artificial means of enhancing the spine of such shaft … which after its assembly measures 5/16 of an inch or less in diameter” will no longer be subjected to this tax. Children are rejoicing throughout the country. For all of you adult archery aficionados – sorry, the tax is still in place for your arrows.

Section 4161 of the tax code is where you’ll find not only the imposition of the bow and arrow tax but also the imposition of the fishing rod tax and the tackle box tax. Other sporting goods which suffer from an excise tax include fishing reels, fly-fishing lines, bobbers, sinkers, leaders, snaps, drayles and swivels. These are excise taxes imposed on the sale of articles by the manufacturer, producer, or importer. Of course this cost gets passed onto the consumer and it is a great example of a hidden tax.

I do not know how or why this particular amendment to the tax code wiggled into the Bailout Bill. As petty as it may be, however, it is in fact a tax cut. Given that tax cuts can be an effective way to stimulate the economy I can’t help but wonder: Is the wooden arrows section of the Bailout Bill the only part of the bill which makes sense?

for the PDF version of HR 1424 go to:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h1424enr.txt.pdf