Currently, CBP, IRS, and TTB collect excise and duty taxes. ATF permits firearms but TTB collects the excise taxes on firearms. Certain goods being exported require State Department approval. FDA regulates food and drugs while TTB collects excises on tobacco and alcohol products. TTB is the third largest revenue collector and has a high dollar return for each dollar spent per employee. TTB collects over $400 per employee
Currently, CBP, IRS, and TTB collect excise and duty taxes. ATF permits firearms but TTB collects the excise taxes on firearms. Certain goods being exported require State Department approval. FDA regulates food and drugs while TTB collects excises on tobacco and alcohol products. TTB is the third largest revenue collector and has a high dollar return for each dollar spent per employee. TTB collects over $400 per employee for each dollar spent. TTB has a reputation with industry of having a very professional staff in educating industry to achieve voluntarily compliance. Rename the Alcohol and Tobacco Tax and Trade Bureau to the “Tax and Trade Bureau” (TTB). This suggestion will require congressional approval to change existing laws.
Change the authority to issue permits, collect duties and excise taxes, and goods export approval from State, IRS, CBP, and ATF to the new TTB.
Establish a memorandum of understanding to allow the new TTB to allow the sharing of information between TTB, IRS, CBP, State, ATF, Justice Department, and FDA.
Amend regulations so the cost of permitting, collection and auditing of firearms and ammunition excise taxes are used to offset costs by the TTB before disbursement of the taxes to the states.
Allow FDA to continue to test or approve the safety of food and tobacco products but subject the industry to audits only by the new TTB.
Move audit and field inspection staff from FDA to the new TTB.
Move information technology support of excises taxes from the IRS and CBP to the new TTB.
Eliminate the regulation requiring the FAET funds go through FWS before disbursement to the states.
Move the support staff (lawyers, human resources, and management analysts), customer support services, special agents and excise tax specialists (FTEs) from the IRS to the new TTB.
Move the duty collectors and permit staff (FTEs) from CBP to the new TTB.
Move the industry specialists and FFL Permit Center / Import Center from the ATF to the new TTB.
Move ATF laboratories to the new TTB.
Move the State Department export staff to the new TTB.
Consolidate the IRS excise central offices into the TTB National Revenue Center.
Locate TTB employees at all US ports of entry to collect excise taxes and duties.
Merge existing offices of the prior agencies into new consolidated offices eliminating multiple offices.
Increase the new TTB budget to cover the FTEs and additional offices.
Assign the permitting and collection of future excise taxes on other commodities to the new TTB.
Designate the TTB as a law enforcement agency in regard to tax evasion of excise taxes and duties.
CBP would work border entry issues and inspection of import cargos.
ATF would work firearm trafficking, explosives, and other trafficking issues.
IRS would focus on an income tax or a flat tax.
The public would have one agency to deal with for importing and exporting goods. TTB deals with trade issues from multiple countries.
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