Friday, October 03, 2008

Bailout Legislation

The emergency bailout bill has passed the house. Included in this bill to resolve what is supposedly a "crisis" is the following language at §503.

SEC. 503. EXEMPTION FROM EXCISE TAX FOR CERTAIN WOODEN ARROWS DESIGNED FOR USE BY CHILDREN.
(a) IN GENERAL.—Paragraph (2) of section 4161(b) is amended by redesignating subparagraph (B) as sub paragraph (C) and by inserting after subparagraph (A) the following new subparagraph:
''(B) EXEMPTION FOR CERTAIN WOODEN ARROW SHAFTS.—Subparagraph (A) shall not apply to any shaft consisting of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the 10 manufacture of any arrow which after its as sembly—
''(i) measures 5⁄16 of an inch or less in diameter, and ''(ii) is not suitable for use with a bow described in paragraph (1)(A).''.
(b) EFFECTIVE DATE.—The amendments made by this section shall apply to shafts first sold after the date of enactment of this Act. t


I consider that I understand a lot about the sophisticated terms in the financial markets and politics. But I am not sure why this particular provision fits within the definition of an emergency. I also understand the term "shaft" and could speculate why this provision would be included in this bill. But should it be limited to wooden shafts?

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