Bill would zero out federal taxes on silencers and short-barreled firearms

What does this do?

HR 8921 would set to zero the $200 federal tax currently charged each time a silencer, short-barreled rifle, short-barreled shotgun, or machine gun is transferred or made under the National Firearms Act. It would also eliminate the special annual occupational tax paid by dealers and manufacturers of these items, and expand an existing excise tax exemption to cover all NFA transfers. Changes would take effect roughly 90 days after enactment.

Who does it affect?

The bill directly affects gun owners, buyers, sellers, dealers, and manufacturers who deal in NFA-regulated items. Owners of standard firearms not covered by the NFA would not be directly affected.

Why does it matter?

Because the federal government currently collects revenue from each NFA transfer and from annual dealer and manufacturer registrations, eliminating those taxes would reduce federal tax revenue. All other NFA requirements, including background checks, registration, and the list of regulated items, would remain unchanged.

What does it cost, and who pays?

• $200 transfer tax set to zero
• Annual dealer and maker taxes eliminated
• All NFA revenue collections end

Where does it stand?