The Business of Guns

a great deal of leeway for loopholes (e.g., purchases in cash that are not tracked or recorded) but also has very little oversight in and of itself. The ATF maintains 11 different licenses for firearms buyers and sellers. While the majority of gun sellers use Type 1 federal licenses, allowing them to sell any legal firearm and accessory, a further 8,000 have a Type 2 license, applicable to pawnbrokers who are authorized to purchase firearms from a seller and then turn them around and sell them to any available customer. Other license categories cover firearmmanufacturers, relic collectors, and importer/exporters. The Type 1 license is the most desired of all these federal requirements, since it allows sellers to purchase an unlimited quantity of guns themselves (including purchasing guns through the mail, which is not inherently legal for an ordinary American), without needing any type of background check for themselves or their business, and to obtain guns at wholesale prices, allowing them to create a profit margin for their own business. Prior to 1993, the low cost of a federal license (just $10 per year) had led to over a quarter of a million licenses throughout the country, although about half of these individuals conducted no business at all, instead using the license to purchase and sell guns in violation of state or local law, avoiding taxes on the exchange. With the passage of the 1993 Brady Handgun Violence Prevention Act (commonly known as the Brady Bill), this fee rose to $200 for the first three years and $90 for additional three-year periods, while requiring licensees to inform local law enforcement of the decision to apply for and hold a license. The next year, 1994, saw the passage of the Violent Crime Control and Law Enforcement Act, marking the first time in American history when dealers were mandated to perform background checks on gun buyers, and the first time in American history when dealers

The Business of Guns

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