US Republican Budget Proposal Has Removal Of Gun Silencer Tax In Its Sights

Summary:

U.S. Republican tax writers pushing through President Donald Trump's signature tax cut priorities proposed to eliminate a customer tax on firearm silencers, a tax potentially undoing the almost 100-year-old tax.

If the bill is passed by Congress and enacted into law, Americans would no longer be charged $200 when purchasing a firearm silencer, also called a suppressor, an add-on feature that reduces the sound of a gunshot.

The firearm silencer tweak is only 12 lines in the almost-400-page bill, but represents a potential grassroots win for gun-rights groups that want to deregulate purchases of firearm suppressors, which currently require special approval from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The suppressor tax has been on the books since the 1934 National Firearms Act, and 4.5 million suppressors were registered with the federal government by the end of 2024, according to data from the National Shooting Sports Foundation.

On average, a firearm suppressor costs about $830 at retail, the group said.

Repealing this tax would cost $1.4 billion dollars over a decade, according to analysis from the Joint Committee on Taxation.

House Republicans applauded Representative Eric Burlison, from Missouri, when he rose at his party's January meeting in Miami to push tax committee leadership to eliminate the suppressor tax.

"This is about making sure that people keep their hearing at the end of the day," Burlison said in an interview, noting he also questions whether the tax infringes the right to bear arms enshrined in the Second Amendment of the U.S. Constitution.

Burlison said he worked with Representative Rudy Yakym, a Republican tax writer from Indiana, to make progress on the silencer tax cut while foregoing a repeal of the same tax for short barrel rifle purchases due to "heartburn" from the larger tax committee.

Democrats tried to strike this silencer tax provision from the bill during legislative debate in the middle of Tuesday night. Republicans defeated the amendment.

Representative Mike Thompson, a California Democrat, argued the silencer change will "make it harder for victims of mass shootings to know where the shots are coming from as they’re trying to run for cover."

“As a combat veteran, a lifelong hunter and gun owner, I can tell you this has nothing to do with hearing protection, but everything to do about making money for one segment of the gun industry," Thompson said.

The Fraternal Order of Police and the National Association of Police Organizations did not respond to requests for comment about the tax change.

Meanwhile, pro-gun lobbyists like the American Firearms Association said this tax tweak does not go far enough, calling the change "nothing more than a crumb dropped from the King's table."

"It's vital that Republicans use the majorities they have in the House, Senate and control of the White House to completely deregulate suppressors and short barrel rifles, and even more importantly, abolish the ATF and repeal the National Firearms Act," said vice president Patrick Parsons.

Reporting by Bo Erickson; Editing by Scott Malone and David Gregorio

Source: Reuters

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Hannah Ellis

May 14 (Reuters) - Russian President Vladimir Putin announced the composition late on Wednesday of a delegation of experienced negotiators to conduct direct talks with Ukraine to resolve the ongoing war, though the talks will not include the Kremlin leader himself.

Speculation on whether Putin would attend the direct talks has hung over the meeting since he had proposed it himself last week. Ukrainian President Volodymyr Zelenskiy had said he would attend the talks if Putin were present.

An order issued by Putin on the Kremlin website said the delegation included two officials who took part in the last set of talks held between the two sides in the first weeks following Russia's 2022 invasion of its smaller neighbour.

Those included presidential adviser Vladimir Medinsky and Deputy Defence Minister Alexander Fomin.

Also named as part of the delegation was Igor Kostyukov, director of the Main Intelligence Directorate of the GRU, Russia's Foreign Military Intelligence Agency. Kostyukov was identified in the Kremlin announcement as Chief of the Main Directorate of the General Staff of the Russian Armed Forces.

Deputy Foreign Minister Mikhail Galuzin was also named as part of the delegation.

Negotiators held several rounds of talks in 2022 first in Belarus and then in Turkey, but the negotiations eventually broke down.

Reporting by Reuters; Editing by Chris Reese and Diane Craft

Source: Reuters

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Isaac Bennett

Federal Reserve Bank of San Francisco President Mary Daly said the strength of the US economy allows policymakers to be patient as they wait for more evidence of how the Trump administration’s policies will affect businesses and households.

“When you step back from the uncertainty and you look at where we are, we’ve got solid growth, solid labor market and declining inflation,” Daly said Wednesday during an event at a conference hosted by the California Bankers Association. “That’s exactly where we want to be if were going to deliver a sustainable growth path.”

Daly said monetary policy is “in a good position” to respond to “whatever comes” from Trump policies on taxes, trade, immigration and deregulation.

“The word of the day is patience,” she said. “Patience to see, not guess.”

Officials held borrowing costs steady last week. Several policymakers have said they expect higher unemployment and inflation, but elevated uncertainty clouds their understanding of how the economy will shape up.

The Fed decision to stand pat looked wise after the US and China announced early this week they would temporarily lower tariffs on many goods as they work toward a broader trade deal. Economists now see a lower probability of recession as a result of the negotiations, but many still forecast a slowdown in activity.

Daly said Trump’s policies had created an “uncertainty shock” but that hadn’t yet turned into a demand shock that might hurt growth and employment.

Source: Bloomberg Europe

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Daniel Carter

Political

Iran is prepared to sign a nuclear agreement with U.S. President Donald Trump if all economic sanctions are lifted, NBC News reported on Thursday, citing a senior adviser to Supreme Leader Ayatollah Ali Khamenei.

Ali Shamkhani, a top political and nuclear adviser, said Iran would agree to permanently forgo nuclear weapons, eliminate its stockpile of highly enriched uranium, limit enrichment to civilian levels, and allow international inspectors full access—on the condition that sanctions are immediately removed, the NBC report stated.

Asked whether Iran would sign such a deal now, Shamkhani responded, “Yes,” in what NBC News described as the most direct statement yet from Khamenei's inner circle.

Shamkhani voiced frustration at Trump's mixed messaging, saying, “He talks about the olive branch, which we have not seen. It's all barbed wire," according to the report.

The comments come as U.S.-Iran nuclear talks continue, with recent rounds described as positive by American officials, though Iranian officials have noted that core issues remain unresolved, NBC News reported.

Shamkhani also expressed concern that Israeli lobbying efforts in Washington could derail negotiations, while signaling that progress remains possible if the U.S. shifts its approach, the report added.

Source: Investing

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Daniel Carter

Central Bank

Economic

Federal Reserve policymakers are leaving interest rates where they are while they try to assess how U.S. President Donald Trump's sweeping tariffs and ongoing trade negotiations will affect prices and the economy.

So far, the hard data is giving them little to go on.

"We're still kind of holding our breath," Chicago Fed President Austan Goolsbee said on Wednesday on NPR's Morning Edition radio show. "We've got a bunch of noise that we're trying to figure out the through line."

A case in point: on Tuesday a widely-watched measure of inflation showed consumer prices rose a less-than-expected 2.3% in April, the smallest annual increase in four years.

The tame reading owed mostly to a decline in food prices. Excluding food and energy prices, which can be volatile from month to month, underlying "core" inflation was 2.8%, the same as in March and too hot to be consistent with the Fed's 2% inflation goal.

"We continue to get these numbers that at least suggest that it's going okay," said Goolsbee, a current voter on the Fed committee that sets interest rates. "It's just, I think, not realistic to expect businesses or central banks to be jumping to conclusions about long-term things when you've got so much short-term variability. That's just a very difficult environment."

The Fed has held short-term borrowing costs in the 4.25%-4.50% range at each of its three meetings so far this year, and last week Fed Chair Jerome Powell signaled there is no rush to change that.

Policymakers speaking this week echoed that sentiment.

"We have ourselves in a good position to respond to whatever comes right now," San Francisco Fed President Mary Daly told the California Bankers Association on Wednesday. "Patience is the word of the day."

The Trump administration has driven import levies to record heights only to postpone or suspend the most aggressive actions. It has exempted some goods like electronics even as it looks into subjecting additional sectors like pharmaceuticals to fresh import levies.

The back and forth has left the Fed struggling to determine the ultimate impact on inflation, growth and employment.

Traveling across the western states in recent weeks, Daly says she hears plenty of worries from businesses and households, but sees little sign in the data they have pulled back on spending or investment as a result.

"If you're in a highly tourism-driven state like Nevada and especially Las Vegas, you're getting nervous because international tourism might be coming down; you're worried about the domestic durability when consumers get a little pinched," she said.

In other states like Utah and Alaska there is still a pipeline of activity that businesses and banks feel they can count on, she said.

Overall, Daly said, "we've got solid growth, a solid labor market and declining inflation."

"People feel like the economy is doing fairly well, and it's just a matter of resolving the uncertainty so we can continue to do very well," Daly said.

Speaking earlier on Wednesday at an event in New York, Fed Vice Chair Philip Jefferson also called the labor market solid and said he felt the slight contraction in U.S. economic output over the first three months of the year was distorted by import data that overstated the degree to which the economy was slowing.

Still, Jefferson said, sentiment among businesses and households has declined, and he was "watching very carefully for signs of weakening economic activity in hard data."

At the same time, he said, inflation is likely to firm, but for how long is unclear.

"If the increases in tariffs announced so far are sustained, they are likely to interrupt progress on disinflation and generate at least a temporary rise in inflation," he said. "Whether tariffs create persistent upward pressure on inflation will depend on how trade policy is implemented, the pass-through to consumer prices, the reaction of supply chains, and the performance of the economy."

Financial markets are currently betting the data will give the Fed the clarity it needs by September, at which point the central bank will deliver the first of a couple of rate cuts by year's end.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

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Manuel

Political

Multiple congressional Republicans raised concerns about President Donald Trump's desire to accept a $400 million airplane from Qatar, as rival Democrats slammed the plan as an illegal foreign donation and national security threat.

Trump said on Monday that it would be "stupid" for him to refuse Qatar's offer of the Boeing (BA.N) 747-8 airplane, which would be used as U.S. "Air Force One," the jet American presidents travel on when they fly around the globe.

Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani told CNN on Wednesday that the offer was "a very simple government-to-government dealing," not a personal gift to Trump, and that "of course" it would be withdrawn if the transaction were deemed illegal.

The aircraft eventually would be donated to Trump's presidential library foundation and used by him after leaving office.

"There will be plenty of scrutiny," Republican Senate Majority Leader John Thune of South Dakota told reporters. "There are lots and lots of issues around that, that I think will attract very serious questions."

Trump's interest in the plane became public as he made a high-profile Middle East trip that included an announcement by state carrier Qatar Airways that it would purchase up to 210 widebody jets from Boeing.

Experts have said it would take years and hundreds of millions of dollars to make the Qatari aircraft, known as a "palace in the sky," suitable for use as transportation for the U.S. commander in chief, despite backers of the plan saying it would save money.

Senator Roger Wicker of Mississippi, chairman of the Senate Armed Services Committee, said the aircraft would have to be checked for surveillance equipment and receive security upgrades.

"It would be like the United States moving into the Qatari embassy," Wicker told Politico. "I’m not sure how quickly the Qatari aircraft can be retooled."

The Defense Department is already procuring a replacement for the current, aging Air Force One, with delivery by Boeing (BA.N) expected within a couple of years.

DEMOCRATS RESPOND

Senate Democratic Leader Chuck Schumer vowed to block all of Trump's nominees to the Justice Department until the agency reports what it knows about the Qatari offer. Three nominees are currently before the Senate.

"The attorney general must testify before both the House and Senate to explain why gifting Donald Trump a private jet does not violate the emoluments clause (of the U.S. Constitution), which requires congressional approval," he said in a speech.

The Democratic National Committee flew a plane dragging a "Qatar-a-Lago" banner near Trump's Florida Mar-a-Lago home on Wednesday.

The action angered nearby Trump supporters. "Whoever's flying that plane can kiss my ass," said Steven Drew, a visitor from North Carolina. "As far as I know, Trump's been trying to do everything to make the country as great as he can, and I'm fully on board with that," he said.

Schumer, of New York, said he wants answers to whether the Qatari government would pay for modifications needed to protect the president and secure communications.

If the U.S. government must bear those costs, Schumer said, "why are American taxpayers being asked to spend hundreds of millions of dollars or more on a plane that will only be used for year or two?"

A White House spokesperson on Monday said details of the gift were still being arranged. A new commercial 747-8 costs approximately $400 million.

Ethics experts have listed a range of Trump activities that could point to the president using his office to enrich himself or his family. Schumer mentioned a $TRUMP meme coin, plans for a new Trump hotel in Dubai and a new golf course in Qatar.

Republican Senator Rand Paul of Kentucky said Trump taking the plane would be a mistake.

“I think it's not worth the appearance of impropriety,” he told Fox News' "Jesse Watters Primetime" program. "I wouldn't take it."

Source: Reuters

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Manuel

Political

The U.S. Consumer Financial Protection Bureau is scrapping a proposal issued under former President Joe Biden that would have sharply limited the sale of Americans' private information by "data brokers," according to a Federal Register notice issued Wednesday.

The agency also yanked proposals that sought to extend consumer protections to the use of new digital payment technologies including cryptocurrency, and that would have prohibited certain terms in the fine print in consumer finance products.

In a statement, Consumer Reports said the withdrawal of the data broker proposal would leave consumers "vulnerable to scams and identity theft."

President Donald Trump's administration has moved this year to decimate the CFPB, initially seeking to shut it down entirely and subsequently saying it can meet its legal obligations with about 10% of its current staff. Efforts to fire large amounts of staff are currently on hold as federal courts consider the matter.

Senior officials in recent days have continued undoing much of the prior administration's work in regulation and oversight. The agency last week withdrew scores of guidance documents issued across administrations since 2011.

In proposing the limits on data brokers in January, former CFPB Director Rohit Chopra said the sale of Americans' private information to data brokers was a "staggering" problem that also jeopardized national security by putting government officials' privacy at risk.

The CFPB did not immediately respond to a request for comment. However, in a Federal Register notice, Russell Vought, the current acting CFPB director, said the proposal no longer aligned with the bureau's changed policy objectives and its interpretation of the Fair Credit Reporting Act.

"Further, commenters raised numerous concerns related to this proposed rule that the Bureau believes require careful consideration before proceeding with a final rule," he said. These included whether the proposal was at odds with federal law.