Music Trade Review
Issue: 1921 Vol. 73 N. 1 - Page 3
NEW YORK with support from namm.org
Music Trade Review -- © mbsi.org, arcade-museum.com T'rJC
-- digitized
PUBLIC LIBRARY
THE
VOL. LXXIII. No. 1
T
Published Every Saturday by Edward Lyman Bill. Inc., at 373 4th Ave., New York.
July 2, 1921
"1HERE arc apparently still a number of members of the trade who, while more or less actively engaged
in doing what they can to have excise taxes on musical instruments eliminated in the forthcoming
Revenue Bill and endorsing the principle of the sales tax as a means to that end, are still of the opinion
that any protest against the surtaxes which the sales tax is expected to eliminate is simply a matter of
a personal fight against burdensome taxation, and has little to do with the general tax issue.
As a matter of fact, it has been definitely proven that the existing stagnation of industry is traceable
in no small measure to the existence of heavy surtaxes that have been imposed on corporation and individual in-
comes during the past few years. The Government itself is fully cognizant of this phase of the situation, for
the heavy tax burden placed upon lousiness profits and invested capital has resulted in the driving of much free
money out of business investments and has turned the owners of capital to the purchase of tax-exempt securities,
particularly those issued by the Federal Government and by States.
At the present time there are, it is estimated, about twenty-two billion dollars' worth of such securities
being held by residents of the United States, and a greater part of this represents wealth which has been di-
verted from commercial and creative enterprises to non-productive investments, or, at least, investments that do
not tend to add to the industrial productiveness or the general prosperity of the country.
It has been held, and with reason, that the continuation of the present system of surtaxes, which has
already been proven a failure, from an income-producing standpoint for the Government, will result in con-
tinued and greater business depression throughout the country. The time has come when capital is badly
needed in many lines of industry to provide for business development and for the employment of many thou-
sands of workers. If the taxation policy continues to place a burden upon constructive business investments
and encourages the tying up of huge amounts in tax-exempt securities there is little hope, economists say, of
any material improvement in the business situation.
Perhaps the surtax evil has been overdrawn, in a measure, with a view to impressing upon Congress
some of the evils that have developed as a result, but the fact remains that a tax plan that will spread the bur-
den and make it equitable will serve not only to bring more revenue into the Government coffers, but will also
help eliminate excise taxes and surtaxes that, regardless of their general effects, are worrisome to legitimate
business and are calculated to hinder its progress.
The sales tax idea, although strongly combated at first in certain sections and by certain interests, appears
to be winning friends steadily. Recently a prominent organization of farmers has come out in support of such
a plan and a number of the leading newspapers,.particularly the Hearst publications, have supported and are
supporting the sales tax idea very strongly. It has been largely a matter of education and as more light is
thrown on the subject the opposition appears to decrease.
It was said in the beginning that the sales tax meant the taking of the tax burden from the shoulders of
the rich man and putting it on the poor, who make up the bulk of the consuming public, but it took little argu-
ment to prove that under all plans of taxation the ultimate consumer always pays and, even with the existing
excise and surtaxes, is called upon to pay amounts in excess of the actual taxes to protect the manufacturer or
other direct tax payer.
In carrying on the tax fight, it will be well for the members of the music industry to study all sides of the
question and not simply confine themselves to attempts to escape excise taxes. It is not necessary at this time to
point out the fact that the music merchants, as well as merchants in every other line, depend upon general indus-
trial prosperity for their success. A tax system that will keep business moving and will distribute the load is
what is needed, and the sales tax seems to supply that need.
Music Trade Review -- © mbsi.org, arcade-museum.com T'rJC
-- digitized
PUBLIC LIBRARY
THE
VOL. LXXIII. No. 1
T
Published Every Saturday by Edward Lyman Bill. Inc., at 373 4th Ave., New York.
July 2, 1921
"1HERE arc apparently still a number of members of the trade who, while more or less actively engaged
in doing what they can to have excise taxes on musical instruments eliminated in the forthcoming
Revenue Bill and endorsing the principle of the sales tax as a means to that end, are still of the opinion
that any protest against the surtaxes which the sales tax is expected to eliminate is simply a matter of
a personal fight against burdensome taxation, and has little to do with the general tax issue.
As a matter of fact, it has been definitely proven that the existing stagnation of industry is traceable
in no small measure to the existence of heavy surtaxes that have been imposed on corporation and individual in-
comes during the past few years. The Government itself is fully cognizant of this phase of the situation, for
the heavy tax burden placed upon lousiness profits and invested capital has resulted in the driving of much free
money out of business investments and has turned the owners of capital to the purchase of tax-exempt securities,
particularly those issued by the Federal Government and by States.
At the present time there are, it is estimated, about twenty-two billion dollars' worth of such securities
being held by residents of the United States, and a greater part of this represents wealth which has been di-
verted from commercial and creative enterprises to non-productive investments, or, at least, investments that do
not tend to add to the industrial productiveness or the general prosperity of the country.
It has been held, and with reason, that the continuation of the present system of surtaxes, which has
already been proven a failure, from an income-producing standpoint for the Government, will result in con-
tinued and greater business depression throughout the country. The time has come when capital is badly
needed in many lines of industry to provide for business development and for the employment of many thou-
sands of workers. If the taxation policy continues to place a burden upon constructive business investments
and encourages the tying up of huge amounts in tax-exempt securities there is little hope, economists say, of
any material improvement in the business situation.
Perhaps the surtax evil has been overdrawn, in a measure, with a view to impressing upon Congress
some of the evils that have developed as a result, but the fact remains that a tax plan that will spread the bur-
den and make it equitable will serve not only to bring more revenue into the Government coffers, but will also
help eliminate excise taxes and surtaxes that, regardless of their general effects, are worrisome to legitimate
business and are calculated to hinder its progress.
The sales tax idea, although strongly combated at first in certain sections and by certain interests, appears
to be winning friends steadily. Recently a prominent organization of farmers has come out in support of such
a plan and a number of the leading newspapers,.particularly the Hearst publications, have supported and are
supporting the sales tax idea very strongly. It has been largely a matter of education and as more light is
thrown on the subject the opposition appears to decrease.
It was said in the beginning that the sales tax meant the taking of the tax burden from the shoulders of
the rich man and putting it on the poor, who make up the bulk of the consuming public, but it took little argu-
ment to prove that under all plans of taxation the ultimate consumer always pays and, even with the existing
excise and surtaxes, is called upon to pay amounts in excess of the actual taxes to protect the manufacturer or
other direct tax payer.
In carrying on the tax fight, it will be well for the members of the music industry to study all sides of the
question and not simply confine themselves to attempts to escape excise taxes. It is not necessary at this time to
point out the fact that the music merchants, as well as merchants in every other line, depend upon general indus-
trial prosperity for their success. A tax system that will keep business moving and will distribute the load is
what is needed, and the sales tax seems to supply that need.
Future scanning projects are planned by the International Arcade Museum Library (IAML).