As you know, the Patriot Act Bailout Bill included an item regarding wooden bows and arrows, which several news outlets picked up on. A very fresh Dealbreaker reader e-mailed the CEO of the company to congratulate him on scoring a shout out in Bloomberg, and received the following response. We're all for charity and children but you can't deny that there's a bit of an underlying lady doth protest too much tone going on.
Dear Concerned Taxpayer:
Thank you for your concern regarding the provision to exempt Federal Excise Sales Tax from children's arrows and shafts.
Rose City Archery, Inc. does not receive one additional cent in income; the provision benefits school physical education programs, Christian camps, Boy and Girl Scouts and other youth archery programs by exempting these programs from paying the sales tax.
Thank you for your concern,
Jerry DishionROSE CITY ARCHERY, INC.
President/CEO
Posted by guest , Oct 02, 2008 6:20PM
The Christian camps, Boy and Girl Scouts and other youth archery and cute little puppy saving anti-terrorism bill!
Posted by guest , Oct 02, 2008 6:23PM
Aren't the Boy Scouts already tax-exempt?
Posted by guest , Oct 02, 2008 6:24PM
Why only Christian camps? Why only the boy scouts and girl scouts?
Posted by guest , Oct 02, 2008 6:24PM
Uh, if people don't have to pay taxes on these purchases doesn't that mean sales go up for them...
fucking miscreants.
Posted by hedgehog , Oct 02, 2008 6:26PM
Off topic:
Anyone think Schwartzman would want a pair of these?
http://www.unbuttonyourbeast.com/
Posted by guest , Oct 02, 2008 6:27PM
WSJ reporting that Blackstone and TPG in late stage discussions on buyout of Rose City Archery...
Posted by guest , Oct 02, 2008 6:29PM
children's arrows and shafts
Posted by Phobos , Oct 02, 2008 6:31PM
Dear Mr. Dishion, Grand Wizard Economics Guru:
Thank you for your response in re: the provision to exempt Federal Excise Sales Tax from children's arrows and shafts.
First: please learn to use semi-colons and colons properly. You're the President/CEO of a company, and poor grammar isn't becoming of one of the nations leading wooden arrow manufacturers.
Second: as anyone who has ever taken an Economics course is aware (you must have been golfing that day..) by eliminating an excise tax you lower the price of a good, thus increasing it's demand. This should lower your marginal cost while simultaneously increasing the number of *cough* arrows sold. This in turn should increase your profit margins.
We're not idiots.
Best Regards,
Phobos.
Posted by guest , Oct 02, 2008 6:34PM
"Rose City Archery, Inc. does not receive one additional cent in income"
You they do. A lower out the door price means more product sold and higher gross. Not to mention reduced overhead because it's less time spent collecting sales tax for the govt. Revs up and SG&A down.
Posted by guest , Oct 02, 2008 6:44PM
@9...see @4
Posted by guest , Oct 02, 2008 6:44PM
@8
Lowering the price of a good will NOT increase demand for the good, it will increase quantity demanded. Maybe it was you who skipped econ.
Posted by guest , Oct 02, 2008 6:45PM
@9...see @4
Posted by Phobos , Oct 02, 2008 6:50PM
@11
Good call. I wasn't trying to discern between quantity demanded & demand curve shift, just looking at actual sell side demand/units sold for the product. I ambiguously used the term demand, apologies.
Posted by guest , Oct 02, 2008 6:51PM
what do the associate numbers look like at rose city?
Posted by guest , Oct 02, 2008 6:56PM
what about jewish camps?
Posted by guest , Oct 02, 2008 7:29PM
What are the numbers for Jewish camp associates?
Posted by StillNoCouch , Oct 02, 2008 8:21PM
Of course, the whole thing seems to have gotten a little off course.
I think the original tipster was just pointing out the absurdity of attaching so much 'misc garbage' onto such a bill.
This is the normal course of business in Washington and generally the way they think.
It's not so much that the 'add-on' was evil or bad or that the CEO's response was to be intepreted as 'Christian' only -- rather, any qualifying organization that might be exempt from taxes.
The root of the matter, which is still silly, is that WTF does that have to do with the bulk of the bill ?
Bills should be limited to one subject ... that would make everything, well, too simple, which is why it's not done.
Right ?
Posted by Joseph di Jersey City , Oct 02, 2008 8:22PM
As absurd as it is to lard the bill up with stuff like this I agree that toys should not be subject to this Federal tax (10-11%). The intent of the tax was to tax hunting and fishing supplies to fund wildlife conservation. It has been extremely successful in doing so to the tune of >$200M/year.
http://www.ttb.gov/firearms/faqs.shtml
My reading of the law it that toy bows and arrows already do not fall under this tax, another wrinkle to the absurdity:
http://uscode.house.gov/download/pls/26C32.txt
An astute CEO might have pointed all of this out (or already challenged any attempts at taxation) rather than hiding behind "school physical education programs, Christian camps, Boy and Girl Scouts and other youth archery programs" but this is the world we live in.
Posted by StillNoCouch , Oct 02, 2008 8:34PM
@Joseph (18) ...
Phucking Awesome, Dude ! Good comment !
Posted by guest , Oct 03, 2008 11:56AM
Apparently, Rose city Archery has a little gift in the new $700 billion bailout pacjage as well.
These guys must be well-connected!
Posted by guest , Oct 03, 2008 2:51PM
I am amazed at the comments posted. Do any of you really think with all the current economic woes that this could increase sales at all. Sales in every business across the country are suffering, maybe at some point within the next 6-10 years, but it is not likely to help sales one bit anytime soon! Or did your economic class not cover the ability of consumers to purchase!