Tax revenues from gun industry reflect record sales

In case you've been in an alternate universe or don't have any gun-nut buddies, it's not new news that there is one part of the economy that's been doing very well under the administration of gun-grabber Obama.

Guns and ammo have been selling like hotcakes since a month or two before the fall election when it became obvious to gun owners that John McCain and Sarah Palin were going to lose to Obama.

The panic has subsided in the last month or so to just brisk business, but the numbers being reported are now indicating how big the guns and ammo buying surge has been since the election of Guns & Ammo Salesman of the Year, President Barack Hussein Obama.

The monthly newsletter from gunbroker.com includes this report.

Gun Sales Push Excise Taxes to New Highs

NEWTOWN, Conn. – During a time period of great economic uncertainty, firearm and ammunition sales have continued to increase throughout the country.

According to the most recent Firearms and Ammunition Excise Tax Collection Report, released earlier today by the Department of the Treasury, firearm and ammunition manufacturers paid more than $109.8 million in the first calendar quarter of 2009; up 43% over the same time period reported in 2008.

This dramatic increase follows a 31.3 percent increase in excise taxes from the previous quarter (4Q, 2008) and eight straight months of increased FBI background checks – another strong indicator of firearm sales.

A third reliable source, the National Sporting Goods Association (NSGA), reported that in 2008, "Hunting and Firearms" equipment was the only category to grow double digits and only one of seven categories that exhibited growth. NSGA's forecast for 2009 shows "Hunting and Firearms" as one of only two categories to exhibit growth.

Manufacturers of firearms and ammunition pay a federal excise tax -- a major source of wildlife conservation funding -- on all firearms and ammunition manufactured (11% on long guns and ammunition and 10% on handguns).

This latest excise tax report which covers the time period of January 1, 2009 through March 31, 2009, shows that $33.0 million was collected in taxes for pistols and revolvers, $38.9 million for long guns and $37.8 million for ammunition. Compared to the same quarter in 2008, collections were up 65.5% for handguns, 42.9% for ammunition and 28.3% for long guns.

Translation to Sales

Using the latest collections as an indicator of sales, a projection of $1.03 billion was generated in the first quarter (calendar year) of 2009. Please keep in mind that although excise taxes are one of the best indicators of industry performance, they only report what the manufacturers paid in taxes and do NOT reflect retail mark-up and final retail sales.

Pistols and revolvers: $33,043,554.83 / .10 = $330,435,548.30 = $330.4 million for handguns

Long guns: $38,979,972.16 / .11 = $354,363,383.27 = $354.3 million for long guns

Ammunition: $37,846,038.52 / .11 = $344,054,895.64 = $344.0 million for ammunition

Total estimation for the quarter: $1.028 billion.

Now is that ironic or what, that the one segment of the economy that Obama, Nancy Pelosi and the other gun-grabbers want to shut down completely is the one area doing really well?

As the D.A. on Law & Order once said, "Sometimes life is a funny old dog."