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California Is About To Tax Guns Like It Does Alcohol And Tobacco

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California Is About To Tax Guns Like It Does Alcohol And Tobacco


It’s the first of its kind tax in the nation and officials are hoping it puts a dent in gun violence.

Starting in July 2024, California will be the first state to charge an excise tax on guns and ammunition. The new tax — an 11% levy on each sale — will come on top of federal excise taxes of 10% or 11% for firearms and California’s 6% sales tax.

The National Rifle Association has characterized California’s Gun Violence Prevention and School Safety Act as an affront to the Constitution. But the reaction from the gun lobby and firearms manufactures may hint at something else: the impact that the measure, which is aimed at reducing gun violence, may have on sales.

As a professor who studies the economics of violence and illicit trades at the University of San Diego’s Kroc School of Peace Studies, I think this law could have important ramifications.

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One way to think about it is to compare state tax policies on firearms with those on alcohol and tobacco products. It’s not for nothing that these all appear in the name of the Bureau of Alcohol, Tobacco, Firearms and Explosives, also known as ATF.

California expects gun sales — and gun violence — to drop when a new tax on firearms goes into effect. (David Croxford/Civil Beat/2024)

What Alcohol, Tobacco And Firearms Have In Common

That agency, part of the Justice Department, is tasked with making American communities safer. The ATF focuses on those products because, while legal, they can cause significant harm to society — in the form of drunken driving, for example, or cancer-causing addictions. They also have a common history: All have been associated with criminal organizations seeking to profit from illicit markets.

Alcohol and tobacco products are thus usually subject to state excise taxes. This policy is known as a “Pigouvian tax,” named after 20th century British economist Arthur Pigou. By making a given product more expensive, such a tax leads people to buy less of it, reducing the harm to society while generating tax revenue that the state can theoretically use to offset those harms that still accrue.

California, for instance, imposes a $2.87 excise tax on each pack of cigarettes. That tax is higher than the national average but much lower than New York’s $5.35 levy. California also imposed a vaping excise tax of 12.5% in 2021.

Of the three ATF product families, firearms have enjoyed an exemption from California excise taxes. Until now.

The Costs Of Gun Violence

Anti-gun advocates have long called for the firearm industry to lose the special treatment it receives, given the harms that firearms cause. The national rate of gun homicides in 2021 was 4.5 per 100,000 people. This is eight times higher than Canada’s rate and 77 times that of Germany. It translates into 13,000 lives lost every year in the U.S.

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Additionally, nearly 25,000 Americans die from firearms suicide each year. This implies a rate of 8.1 per 100,000 per year, exceeding Canada’s by more than four times. Moreover, more people suffer nonfatal firearm injuries than die by guns.

A body lies in a Pearlridge Center parking garage Friday, Dec. 22, 2023, in Honolulu. The deceased is reported to be Theresa Cachuela, 33. Pali Momi Medical Center and Bank of Hawaii Pearlridge were on lockdown. The shooter is currently at large. (Kevin Fujii/Civil Beat/2023)A body lies in a Pearlridge Center parking garage Friday, Dec. 22, 2023, in Honolulu. The deceased is reported to be Theresa Cachuela, 33. Pali Momi Medical Center and Bank of Hawaii Pearlridge were on lockdown. The shooter is currently at large. (Kevin Fujii/Civil Beat/2023)
Police responded to the shooting death of a woman at the Pearlridge Center in December, just a few days before Christmas. (Kevin Fujii/Civil Beat/2023)

Gun deaths and injuries aren’t just tragic — they’re expensive, too. One economist estimated the benefit-cost ratio of the U.S. firearms industry at roughly 0.65 in 2009. That means for every 65 cents it generates for the economy, the industry produces $1 of costs.

And that back-of-the-envelope calculation may be an underestimate. It included the cost of fatal gun violence committed within the U.S. But the estimate didn’t include nonfatal injuries, or the cost of firearm harms occurring outside the U.S. with U.S.-sold weapons.

Mexico Pays A Steep Price For US Gun Trade

America has been called the world’s gun store. No country knows this better than Mexico. The U.S. endured roughly 45,000 firearms deaths in 2019, while the rest of the world combined saw 200,000. Mexico, which shares a long, permeable border with the U.S., contributed 34,000 to that grisly total.

Mexico’s government estimates that 70% to 90% of traceable guns used in crimes seized in the country come from the United States. Other examples abound. For instance, U.S.-sold guns fuel gang violence in a lawless Haiti.

No investor would back such an industry if they were forced to pay its full cost to society. Yet U.S. gun sales have grown fourfold over the past 20 years to about 20 million guns annually, even though they’re now deadlier and more expensive.

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What Alcohol, Tobacco And Firearms Don’t Have In Common

Across the U.S., there’s not a single state where firearms are taxed as much as alcohol and tobacco. I think guns should probably be taxed at a higher level than both of them. That’s because unlike alcohol and tobacco — consumable products that disappear as soon as they’ve been used — firearms stick around. They accumulate and can continue to impose costs long after they’re first sold.

Starting in July, California will tax firearms at about the level of alcohol. But the state would have to apply an excise tax of an additional 26% to equal its effective tax on tobacco.

It’s unclear how the new tax will affect gun violence. In theory, the tax should be highly effective. In 2023, some colleagues and I modeled the U.S. market for firearms and determined that for every 1% increase in price, demand decreases by 2.6%. This means that the market should be very sensitive to tax increases.

Using these estimates, another colleague recently estimated that the California excise tax would reduce gun sales by 30% to 44%. If applied across the country, the tax could generate an additional $1.5 billion to $1.9 billion in government revenue.

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One possible problem will come from surrounding states: It’s already easy to illegally transport guns bought in Nevada, where laws are more lax, to the Golden State.

But there’s some evidence that suggests California’s stringent policies won’t be neutralized by its neighbors.

When the federal assault weapons ban expired in 2004, making it much easier to buy AR- and AK-style rifles across much of the U.S., gun murders across the border in Mexico skyrocketed. Two studies show the exception was the Mexican state of Baja California, right across the border with California, which had kept its state-level assault weapons ban in place.

Gun seizures in Mexico show that all four U.S. states bordering Mexico rank in the top five state sources of U.S.-sold guns in Mexico. But California contributes 75% less than its population and proximity would suggest.

So, California laws seem to already be making a difference in reducing gun violence. I believe the excise tax could accomplish still more. Other states struggling against the rising tide of guns will be watching closely.

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This article is republished from The Conversation under a Creative Commons license. Read the original article.



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What’s open, closed for Independence Day weekend in California?

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What’s open, closed for Independence Day weekend in California?


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With July 4 falling on a Saturday this year, many businesses and organizations are taking the day off Friday, July 3, to mark America’s 250th birthday. From banking to mail service, here’s what’s open and closed for the holiday weekend.

Most federal offices closed, mail service to continue

Non-essential federal offices will be closed on July 3. However, mail service will continue as normal, and post offices are scheduled to remain open.

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Most California government offices to remain open

Most California government offices will be open on July 3, with some exceptions.

DMV offices throughout the state will be open. However, the Employment Development Department will be closed.

DMV offices that offer Saturday hours will be closed on July 4.

Private parcel services to remain open

UPS and FedEx are both scheduled to operate normally on July 3, but will suspend service on July 4.

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Stock markets closed

Both the New York Stock Exchange and Nasdaq will be closed on July 3.

Most banks to stay open

While most banks were expected to operate normally on July 3, some may operate under modified holiday hours. All banks will be closed on July 4.

Online banking services should remain operational.

Grocery stores

Most major grocery chains will be open on both July 3 and July 4. Trader Joe’s locations will be open for regular business on July 3 but will close early at 5 p.m. on the Fourth of July.

Retailers

Many major retail stores, such as Walmart and Target, plan to operate under normal business hours on both July 3 and 4. All Costco warehouse stores operate under normal business hours on July 3, but will close on July 4.

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Restaurants

Most major restaurant chains remain open on July 4, but some will have limited hours. All Raising Cane’s locations will close on July 4.



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California gets Bruce Lee Day in a first for US state’s Chinese Americans

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California gets Bruce Lee Day in a first for US state’s Chinese Americans


Bruce Lee Day aims to honour the San Francisco-born martial arts legend as a cultural bridge and Asian-American icon.

Martial arts icon Bruce Lee will become the first Chinese American in California history to be honoured with an annual namesake day.

California Governor Gavin Newsom signed a law on Tuesday afternoon, officially designating May 17 as Bruce Lee Day.

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Lee was born in San Francisco in 1940 and returned to the city on May 17, 1959, aged 18, after spending his childhood in Hong Kong.

His daughter, Shannon Lee, CEO of the Bruce Lee Foundation, said the honour reflects her father’s enduring legacy as a bridge between cultures.

“From young people who found confidence and possibility in his philosophy, to families who finally saw themselves represented on screen, to athletes who still draw on his teachings of discipline and inner strength, his reach is profound,” she said in a statement.

State Assembly member Matt Haney, who represents San Francisco, called Lee the “epitome of the best of California”.

“At a time when Asian Americans were too often absent from or stereotyped on screen, Bruce Lee helped generations see themselves represented with strength and dignity,” he said.

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The Bruce Lee Foundation and Asian-American groups hope Bruce Lee will be celebrated each year with voluntary activities, including cultural exhibits, public events and classroom lessons.

Born to Chinese parents touring the US with an opera, Lee held birthright citizenship. He moved to Hong Kong as an infant, became a child actor, and studied Chinese kung fu before returning to the US in 1959.

He enrolled at the University of Washington in Seattle in 1961, but dropped out to teach martial arts.

In the 1960s, Lee appeared in Hollywood, most notably as Kato in the TV series The Green Hornet, but said studios typecast him in racist roles and paid him less than white actors.

He returned to Hong Kong and starred in martial arts films, including The Big Boss and Fist of Fury.

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Lee died tragically in 1973 at the age of 32 after an allergic reaction to pain medication.

His name and likeness remain widely popular.

Fans gather on his birthday, and a treatment he wrote for a television series inspired the HBO Max show “Warrior”.



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As fireworks pop off for July 4, which are legal to use in California?

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As fireworks pop off for July 4, which are legal to use in California?


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Each year, fireworks light up the sky across the United States for the nation’s Independence Day. With 2026 marking the nation’s 250th birthday, fireworks shows may be a bigger draw.

With California being so fire-prone, the state has strict fireworks laws, but does that mean that people won’t enjoy fireworks without risking jail time on July 4?

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Are fireworks illegal in California?

The California Department of Forestry and Fire Protection, or CalFire, is the agency in charge of managing fireworks and classifying which ones are safe to light.

The California Fireworks Law was passed in 1938 and designated the Office of the State Fire Marshal as the only fireworks classification authority in the state, according to CalFire.

The fire marshal’s office classifies fireworks through lab analysis and field testing. It also requires that all parties dealing in fireworks, such as pyrotechnic operators, manufacturers, and retailers, have licensing.

Along with the aforementioned law, the State’s Explosive Law authorizes the fire marshal to “adopt regulations for the safe use, handling, storage and transportation of explosives,” CalFire says.

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“Safe and Sane” fireworks are less likely to cause injury and generally mean that the fireworks do not explode or fly, according to the City of Fontana.

There are almost 300 communities in the state that allow “Safe and Sane” fireworks.

It is illegal in the state to sell, transport, or use fireworks that don’t carry the “Safe and Sane” seal or use any in a nonpermitted community. If convicted, you can face a fine up to $50,000, a year in jail or both, according to CalFire.

All other fireworks are considered illegal in the state and are prohibited from being operated by unauthorized parties in most jurisdictions.

Some illegal fireworks include:

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  • Wire Core Sparklers
  • Sky rockets
  • Bottle rockets
  • Roman candles
  • Aerial shells
  • Firecrackers
  • Other fireworks that explode, go into the air, or move on the ground in an “uncontrollable manner.”

How to safely use fireworks

CalFire has put out a list of safety tips to avoid injury when handling fireworks.

CalFire recommends:

  • Use only State Fire Marshal-approved fireworks
  • Verify local ordinances before purchasing or using fireworks.
  • Always read the directions on labels.
  • Children should always have an adult present.
  • Only use fireworks outdoors.
  • Avoid using fireworks near dry grass or other flammable materials.
  • Only light one firework at a time.
  • Have a bucket of water and a hose nearby in case of fire.
  • During a drought, it is recommended that you use a bucket of reused water to submerge your firework after use to ensure it’s completely extinguished.
  • Never place any part of your body directly over a fireworks device when lighting the fuse.
  • Back up several feet immediately after lighting a firework.
  • Never point or throw fireworks at another person.
  • Never attempt to relight or fix fireworks.
  • Never experiment with fireworks.
  • Do not wear loose-fitting clothing while lighting fireworks.
  • Never carry fireworks in your pockets.

Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.





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