Fishing Equipment Tax Relief Act of 2025
Summary
The Fishing Equipment Tax Relief Act of 2025 aims to amend the Internal Revenue Code of 1986 by reducing the excise tax rate for portable, electronically-aerated bait containers from 10% to 3%. This change is intended to provide tax relief to manufacturers, producers, and importers of these specific fishing equipment items. The bill was introduced in the Senate by Mr. Scott of Florida and Mrs. Moody and referred to the Committee on Finance.
Expected Effects
If enacted, the Act will lower the tax burden on portable, electronically-aerated bait containers. This could potentially lead to lower prices for consumers and increased sales for manufacturers. The reduced tax rate would apply to articles sold after December 31, 2025.
Potential Benefits
- Potentially lower prices for consumers of portable, electronically-aerated bait containers.
- Increased sales for manufacturers, producers, and importers of these items.
- Stimulation of the fishing equipment market.
- Possible job creation within the manufacturing and retail sectors related to fishing equipment.
- Simplified tax compliance for businesses dealing with these specific products.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in government revenue due to the reduced excise tax rate.
- The benefit is limited to a specific niche market (portable, electronically-aerated bait containers) and may not have a broad economic impact.
- Possible administrative costs associated with implementing and monitoring the new tax rate.
- The tax reduction may disproportionately benefit manufacturers and importers rather than consumers.
- Potential for lobbying efforts to expand the reduced tax rate to other fishing equipment, further eroding government revenue.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the constitutional power of Congress to levy taxes, as outlined in Article I, Section 8, Clause 1. The purpose of the tax, even at a reduced rate, is to generate revenue, which falls within the purview of Congress. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).