Posted 15 July 2004 - 03:46 PM
"Is there anything in the 1934 NFA law that says that the government can never raise the tax to say $500, or even $1,000?"
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Yes, as the rates were set by Congressional Act, they cannot be ammended without further visitation by Congress. The tax values selected in '34 was completely arbitrary in that the number chosen was selected not from any definable taxation basis, if it was it might have been written to include language relative to advancing the rates, but rather as the most onerous one likely to dissuade the further purchase of those weapons that were to be included in the new regulations, a 100% tax rate on the purchase price of the most visible weapon then being considered for inclusion, the Colt '21 TSMG. The rates are set.
For the sake of argument, there is nothing preventing >>Congress<< from the raising of the original NFA tax rates ($200.00, $5.00) but they would need to, essentially, Congressionally reauthorize the entire Act to do so......an unrealistic probabilty, politically. So an Administrative action by BATFE to raise rates will NOT happen.
-TomH