21teev. NATIONAL ~~M'~
lOW BEIIG DELIVERED
~MODEL
9E-The Finest Electt:ically-
~ Operated Cigarette Vending Machine.
MODEL 9M-The Finest Manually-.....lII......
Operated Cigarette Vending Machine . .....""..
All NATIONAL Vending Machines accept and oper-
ate on nickels, dimes and quarters in any combination
.. . standard N ATIONAL equipment. NATIONAL engi-
neering and development are still the finest.
COMING SOON:
(a) The new and improved NATIONAL manually-
operated Candy Vending Machine.
(b) The new and revolutionary NATIONAL electri-
cally-operated Console Candy and Cigarette
Merchandiser.
NATIONAL VENDORS, Inc.
5055 Natural Bridge • St. Louis 15, Missouri
EASTERN REGION:
88
L. H. CANTOR
11219 Superior Ave.
Cleveland 6 , Ohio
SOUTHERN REGION: NORTHERN REGION:
ED. BROWN, Inc.
2808 McKinney Ave.
Dallas 4 , Texas
WEIDMAN NATIONAL SALES
5911 Fourth Ave.
Detroit 2, Mich .
WESTERN REGIOr"J:
E. C McNEIL
713 S. Westmoreland
Los Angeles 5 , Cal.
FOR
SEPTEMBER
~ 94 7
Overlapping Taxes Due
For Early Correction
WASHINGTON-In one of its tax study
reports during the summer, the Treasury
Department suggested methods for cor-
recting the overlapping of federal and state
taxation on gasoline, cigarettes and other
products.
Since the federal tax system is scheduled
for a general overhauling when Congress
meets in January, it is possible that some
steps may be taken to correct dual taxation.
In many cases, co-ordinated action by
state and federal governments must be
taken before any real progress can be made.
The wave of state taxes on cigarettes
has developed into an example of over-
lapping that is getting much attention_ The
Treasury report suggests that the states
drop cigarette taxes and leave this field
to the federal government.
One other suggestion is that the federal
government increase its taxes on cigarettes
and pass part of the revenue on to the
states. It would be 1949 now before a ma-
jority of the state legislatures would meet.
to repeal state taxes on cigarettes.
The Treasury report suggests that the
federal government quit taxing gasoline
and leave this field to the states. Gasoline
taxes now bring about 18 per cent of all
state revenues, while cigarettes taxes now
rate as ninth in producing state revenue.
Gasoline is taxed by all 48- states and
seven local units.
'.
The Treasury says that overlapping of
income taxes has not proved to be as
. .,
serious as it might seem.
Th e states get about ten per cent of
their revenue from liquor and beer taxes,
while the fed eral government gets about
six pey cent of its revenue from this source.
The Treasury report suggests letting this
situation stand as is.
The report says that no special problem
has developed thus far in the expanding
use of admission taxes on amusements.
A total of 27 states now collect a sales
tax and the Treasury report says this
duplicates specific excises on a number of
items. The report says this overlapping is
of "secondary im portance," but that it
will be considered when Congress takes up
the general tax problem in January.
The taxing of coin-operated machines by
federal, state and city governments may
well be included under the subject of
overlapping taxes and the Industry may
make a plea for dropping the fooeral tax on
th is bssis.
The general trend of opinion has been
that state and local taxes on amusement
games must be fough t on local grounds,
and hence the federal government should
leave this field to the states and cities.
Cigar Production Up
In Pop. Price Bracket
NEW YORK-Internal Revenue Bureau
report on cigar taxes for the fi scal year
ending June 30 showed an increase in
cigar output for the 12-month period of
16.6 per cent.
The major increase was in cigars in the
eight to 15 cent price bracket, a trend
that has been pleasing to opera tors of cigar
vendors.
To tal number of cigars produ ced in the
12-month period amounted to 5,704,311,222.
Bayuk Cigar, Inc., in its semi-annual
report, showed big gains in sales for the
first half of this year. Bayuk makes Phillies,
said to be the largest seIling brand in the
country. The brand is still distributed on
an allotment basis but allocations are being
made more liberal each month.
Early this year the total output of cigars
began to show considerable decline, but
Penn. Cig Opera t ors Absorb
the outpu t of the more popular priced
cigars is holding high levels.
Par t of New Ta x Levy
The Cigar Manufacturers Assn. naturally
PHILADELPHIA-The first full month's
took note of the decline in output and put
report on the doubled cigarette tax showed
research workers to finding the reason.
vending machine operators here that th ey
The cigar makers listened to a report on
and other smokes sellers are makin g huge
the subject in July, prepared by Joseph
contributions to the state treasury.
Pincus, economist for the group.
Th e new four-cent-a-pack rate brought in
$3,249,105 in July, a shade less than the
The report classed cigars as a semi-
budget estimate of $3,250,000. State revenue
luxury item, havin g a higher average retail
officials expect that as the administration of
price than other semi-luxury items. It also
th e tax gets fur ther ironed out, the yield
said that wh en prices of all consumer goods
will exceed all expectations of those who ':' are up, the retail price of cigars does not
pushed th e law through the Legislature.
attract attention. But when consum er price~
Vending machine operators here have not
on other goods are down, then the price
passe d on the entire two-cent increase to
of cigars attracts attention. But a reversal
in cigar output happened early in 194 7
consumers. Instead, they have raised the
rrice only one cent, to 20- cents, and many
which, the report says, is due to a decline
have worked out arrangements with location
from war-time smoking and also a sudden
owners to share the extra penny tax.
co nsumer reaction t.o high prices.
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