; and (B) in paragraph (2) by striking $500 and inserting 50 percent of the dollar amount applicable under paragraph (1) for the taxable year . (2) Small importers and manufacturers Paragraph (1) of section 5801(b) of such Code is amended by striking substituting $500 for $1,000 and inserting substituting 50 percent of the dollar amount applicable under such paragraph for the taxable year for $2,000 . (3) Adjustment for inflation Section 5801 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (c) Adjustment for inflation In the case of any taxable year beginning in a calendar year after 2019, the dollar amount in subsection (a)(1) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase under paragraph (1) is not a multiple of $10, such increase shall be rounded to the next lowest multiple of $10. . (b) Increase in transfer tax on firearms (1) In general Subsection (a) of section 5811 of the Internal Revenue Code of 1986 is amended— (A) by striking $200 and inserting $500