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NAMM Protests Increase in Excise Tax
In Letter to Ways & Means Committee
A
LETTER from the National As-
with a. letter signed by President Ray S.
sociation of Music Merchants has
Erlandson as follows:
been sent to the 25 members of
"The National Association of Music
the House Ways and Means Committee,
Merchants, through its membership of
opposing an increase in the Manufac-
one thousand retail music merchants, re-
turers' Excise Tax on musical instru-
spectfully wishes to present its views
ments, from 10% to 25%. as recom-
regarding the proposed increase in the
mended by Secretary of the Treasury
manufacturer's excise tax on musical in-
Snyder.
struments as recommended by Secre-
The NAMM plea is based on the five
tary of the Treasury Snyder before the
principal factors set forth on Page 1
House Ways and Means Committee on
of the letter.
February 5th, 1951.
The letter forcefully points up the fact
"Our case in opposition to an increase
that, had it not been for aggression in
in the rate of this tax is not predicated
Korea, the present 10% Excise Tax
upon any mere desire to avoid a fair
would have been reduced by half. There-
share of taxes, but is based upon the
fore, without this reduction, the Tax
following premise.
has in effect been doubled, compared to
1. That our experience and a careful
what it might have been under peace-
survey indicates that 10.3% of all
time conditions. The 10% Tax on musi-
musical instrument sales represent
cal instruments was in effect throughout
the working tools and essential
World War II and should, therefore, be
means of livelihood of music
considered adequate under present con-
teachers and musicians.
ditions.
2. That 82% of all musical instru-
The Board of Directors of the NAMM
ments are purchased for educa-
has gone on record favoring a Retail
tional and character building pur-
Sales Tax over any increase in present
poses.
Manufacturers' Excise Taxes or Excise
3. That there is a critical age for
Taxes on any manufactured items not
musical learning in the growth of
now taxed. The basis of the Directors'
a child which should not be
action was that a discriminatory tax such
abridged.
as the Manufacturers' Tax on a number
4. That the Musical Instrument In-
of limited items or even a broader group
. dustry has at no time been a ward
of commodities, is not an equitable man-
of or of such expense to the Na-
ner in which to raise taxes. The Manu-
tional Government as to justify a
facturers' Excise Tax is a hidden tax,
tax for a return in kind.
whereas the Retail Sales Tax is obvious
5. That the added revenue to be de-
to the public, and for this reason is less
rived from an increase in the rate
complicated to eradicate when the need
of this tax is disproportionate to
for additional revenue subsides.
the ill-effects which may resutt
Musical instruments are of greater
therefrom.
importance to the nation's educational
"That musical instruments are the es-
program at the present time than they
sential tools of music teachers and
were a scant ten years ago. This is pri-
musicians is self-evident in our daily
marily due to the effective work of the
living and that of our children. The as-
entire music industry through the pro-
sociation's survey shows that teachers
motional activities of the American
and musicians purchase 8% of the
Music Conference. Where musical in- . pianos, 3 % of the band and orchestra
struments might have been considered a
instruments, and 20% of the miscel-
luxury item at the beginning of World
laneous instruments, and account for a
War II, they have been completely re-
total of 10.3% of all musical instrument
moved from this category by the work
sales. (Appendix 1)
of the industry following the close of
"No representative of the people
the last war. The NAMM letter to
would think of taxing the working tools
Congressmen forcefully focuses atten-
of a mechanic, but the piano or violin
tion on this fact, which cannot be dis-
are just as essential to music teachers
puted or minimized.
and musicians as are the hammer and
Material illustrating the importance
saw to carpenters.
of music in the educational field was
"If the tools of the one are obviously
presented to the Congressmen, together
meant to be productive whereas the
12
productivity of the tools of the other
may require deeper discernment, the
difference in obviousness should not dig-
tort an appreciation of their similarity.
Men and women in this country are free
to choose lawful occupations in which
their success or failure is ultimately de-
termined by the value judgments of their
equally free-to-choose customers, and
their tools are an essential aid in the
values which they produce. Be they
music teachers or mechanics, carpenters
or musicians, neither, in our opinion,
should be handicapped by a tax on
these essential means of livelihood.
That 82% of musical instruments are
purchased for educational purposes is
evidenced by figures compiled by this
Association from questionnaires sent
to our members who account for ap-
proximately 75% of all musical instru-
ment sales.
"Of total piano sales. 82% are pur-
chased by schools, students, private
teachers, parents for home use, religious
organizations, and character building
agencies such as YMCA's YWCA's,
CYO, 4-H clubs, etc. (Appendix 1)
"Of total band and orchestra instru-
ment sales, 93% are purchased by stu-
dents or parents of students, schools,
private teachers, religious organizations
and character building agencies in ap-
proximately that order, with individual
purchases for or by students accounting
for 70 percentage points of the 93% of
the total. (Appendix 1)
"Other instrument sales, which in-
clude miscellaneous string, fretted and
percussion instruments such as guitars,
mandolins, drums and xylophones, 7 1 %
are accounted for by sales to this same
educational category of students, schools,
private teachers, religious organizations
and character building agencies.
"We will not labor the Committee
with the intangibles concerning the
growing place of music in the morale
and cultural life of our people or in the
educational progress of our youth. These
things are well known to you. and the
overwhelming goodness and the solid
values of music in its many uses will not
be depreciated to you because of friv-
olity and abuse in a few places. That
the "educational factor" of music, and
therefore of musical instruments, is im-
portant is attested by its increasing use
by our schools, colleges, church schools
and churches. This is self-evident by con-
THE MUSIC TRADE REVIEW, APRIL, 1951