Monday, June 28, 2010

Guns Cost Plenty.

What's your take?

Guns cost plenty these days. When you consider it, a firearms is a fairly simple tube with a fine trigger mechanism. That shouldn't be terribly expensive in this day of computerized numerical controlled milling machines and so on.

There is the wood stock. The price will vary depending on the rarity of the wood. Unless you are getting a synthetic or folding stock. Then the price of fine wood has no bearing.

So why so much?

Lawyers out there are itching to sue. Lawyers are hot to shut down firearms in the USA. In fact, lawyers, who are mostly Democrats, are hot to shut down the USA with all their lawsuits. If someone deliberately shoots someone else, some jerk lawyer will sue the gun manufacturer. Gun makers need insurance against stupid lawsuits (which some lawyers always win!). Rant, rave, snort!

Add in the cost of insurance to the cost of materials and labor.

But even that isn't too expensive. Shipping and handling don't add that much extra. Why so much? Well, we make some money. Our usual gross markup is around 15% on the price of the firearm wholesale price. Here's where it gets interesting.

The federal government adds an excise tax onto the price of a gun. An "excise tax" is any tax which isn't an income tax or a head tax; that is pretty much all other taxes. The tax on firearms is as high as 11%. Unless you need a Tax Stamp for possession of an NFA firearm. That rate is a flat $200 per item.

Washington state adds in dealer license taxes. The consumer doesn't get to know about these taxes. On their own, they're not too bad, running around 1%. And Washington State adds in fits own firearms dealer tax (thoughtfully called a fee, to confuse the voters) of $125 per year.

Then Washington state adds sales tax. There adds at least another 8.1% on to the price. Unless you live in a another taxing district, in which case we are obliged to know and charge you whatever that rate is, keep track of it separately, and forward the different tax rates to the state.

So how about dodging sales tax by ordering from out of state? Governor Gregoire and the legislature thought of that one too. We must estimate the value of the firearm you get from out of state and charge you the "Use tax" which is the same as the sales tax. Aren't you just giddy with glee the governor can't keep her hands out of your pockets?

More than 21% of the price of your firearm is taxes... charming. But at least we get to have 15% of that, so we can rest easy (sigh).

Nope. After we pay for the light bill and the phone bill, which is about 40% tax, we have to pay for property tax, Labor and Industries tax, Business and Occupancy tax, and 15.3% Social Security tax. Left over is almost enough to buy dogfood for Hannah. You can bet the manufacturers of all the guns face a similar prospect from greedy governments. How else can politicians afford to buy luxury limos for their entourage of sycophants?

So be kind to a rich politician. Buy a gun today.