NEW Radical FET Legislation

[CXARROWS]

The following letter is in response to Archery Tax 'Reform' HR 5394 that will impose a tax equal to 39 cents per arrow shaft.

"This tax will increase the cost of arrows by 20% for youth programs and will hurt the archery program budgets of summer camps and Archery in Schools programs." - TimCharters, Charters and Company, LLC


Full Story:

http://www.carbonexpressarrows.com/c...s_122304.shtml

[Coastie]

Something doesn't add up here, My cost at the retail level for "youth arrows" is far greater than the $2.00 per shaft implied by a 39 cents= 20% increase stated in this article. Many youth programs are tax exempt as well so even this excise shouldn't affect them very much. I somehow don't trust the archery industry to be the one shouting wolf where this increase is concerned. Could it be that this excise tax would reduce their margin of profit on arrows constructed overseas and imported into the U.S.?
Hmmm, very interesting. How about those $104.00 (wholesale) a dozen arrows that are being touted as the greatest thing since sliced bread? A .39 increase per shaft is nothing compared to the already ridiculous cost. "Methinks the lady doth protest too much"

[vc1111]

Many youth programs are tax exempt as well so even this excise shouldn't affect them very much.

Coastie, the tax exempt status of any organization does not prevent a manufacturer from having to increase its cost when it is the target of higher taxes. Tax exempt or not, the price could increase as a result of higher taxes being levied upon the manufacturer.

If you don't like the cost of arrows now, higher taxes on our manufacturers certainly won't help.

Other than that, I also share your wariness as to the appearance of a manufacturer of any type on this board without additional clarification and information. I will say that this poster did go so far as to sign the post with his name and company status, but my fundamental understanding of LLC's tells me that they are relatively new legal entities. So who is Charters and Company LLC and how are they connected to Carbon Express?

Without knowing much about that industry, my first thoughts are that perhaps this manufacturer is using the appeal of "youth programs" to summon sentiment against a tax increase which could lower profits in a highly competitive environment.

A little more info please....

[reylamb]

How about telling the whole truth? The tax already applied to companies that manufactured their arrows in the states, ie Gold Tip and Easton. Korean Express was exempt from this tax since thier arrows were manufactured in Korea as is also true with PSE, Blackhawk, and almost every other arrow manufacturer. Truth is, by using this loophole you have had a competitive advantage over Gold Tip and Easton from a price point perspective. And yet, when we compare the Korean Express top of the line arrows with the comparable Easton Arrows, the pricing is almost the same. You have had cheaper labor, and no taxes and yet you charge roughly the same money for a product of equal quality.

Here is an example, raw shaft comparison on 2 similar shafts from Easton VS Korean Express:

Korean Express:
CXL Select 350s
Straightness (28 inches not total tip runout) advertised +- .003
Outside Diameter 9.3mm
8.0 gpi
Weight tolerance ??????
Cost raw shaft / dozen: 119

Easton
Fatboy 400s
+- .005 total tip runout (advertised)
Outside Diameter 9.3mm
7.8gpi
Weight tolerance +- 2 gr
Cost raw shaft / dozen: 109

Nearly identical shafts, although the Eastons are way more durable as they are standard with a uniushing) and the Korean Express are more expensive even though they do not currently pay the arrow tax......

Heres a thought, move the manufacturing over here since you now pay the same taxes as everyone else.

Oh, that's right, its for the children!!!!! Quit crying in your beer.

[reylamb]

As an FYI VC, there will not be a tax increase on arrows that are manufactured and assembled in the states, ie Gold Tip and Easton, only on those that import the raw shafts and finish them stateside.

The original "arrow tax" was on manufacturers that built their arrows in the states. The loophole allowed manufacturers to import shafts and assemble them here, ie put on the fletchings and nocks. By assembling arrows, they were not "manufacturing" them here, and were thus exempt from the original $.39 tax per shaft. All this new legislation does is levell the playing field.

Kudos to the ATA, and shame on you Korean Express.

[vc1111]

Kudos to the ATA, and shame on you Korean Express.

Kudos to reylamb for the inside information. That makes sense and shines light on the subject.

Truth is, by using this loophole you have had a competitive advantage over Gold Tip and Easton from a price point perspective.

And now we know.......the rest of the story.

[tardfarmer]

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Republiclones and Demosocialists all love taxes - they just won't admit it.

[reylamb]

I can not take full credit for this one VC, it was a big story 2 years ago. 2 years ago GT and Easton got support from Sen McCain to close the loophole, but it did not fly for some reason.

Korean Express is taking a real beating over on archery talk about this right now!!!!!

But (in my best Paul Harvey imperssonation)....and now you know the rest of the story!!!!!!!!