Music Trade Review
Issue: 1953 Vol. 112 N. 8 - Page 26
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
W. R. GARD
Executive Secreta
RUSSELL B. WELLS
President
NAAAAA Enters Plea for Removal
of Excise Tax on Musical Instruments
The Ways and Means Committee of
the House of Representatives held hear-
ings regarding manufacturers exeise
taxes during the period of July 28.
through August 6. The National Asso-
ciation of Music Merchants was invited
to state its views to the \^ ays and Means
Committee regarding the 10% excise
tax on musical instruments.
Printed on these pages is a state-
ment by Executive Secretary William
K. Card which was filed with the House
\\ ays and Means Committee pertaining
to the elimination of the 10% manu-
facturers excise tax.
The hearings before the House Ways
and Means Committee were "pro-
forma" and, therefore, a personal ap-
pearance was not made. Upon advice
of the JVAMM's Washington Counsel,
the case against the tax by the Associa-
tion was made by filing the following
statement.
Executive Secretary Card received
the approval of the Committee to aug-
ment the statement of July 30. with new
data yet to be compiled in view of the
fact that the hearings of July and Aug-
ust were advanced from the prospective
Fall schedule, at which time the Com-
mittee had expected to reach the excise
tax subject hearings.
A supplementary statement combin-
ing up to date statistics will be com-
piled by the NAMM during the Fall,
and when Congress reconvenes in Janu-
ary the Association will then appear
before the Committee, at the time the
House Ways and Means Committee
writes its bill for the consideration of
both the House and Senate.
The Association is not urging any
action on the part of its members
at this time and will not request that
any local action be taken until after
January and the reporting out by the
Committee of an actual bill to revise
26
the tax structure.
After stating his position and that
he represented 3000 retail dealers of
Musical Merchandise. Mr. Card staled:
"Upon the conclusion of my testimony. I
am sure you will realize that I also speak for
millions of American students in all grades of
public, parochial and private schools; for the
millions of parents of these students, and
the teachers who instruct them.
"Music is no longer a privilege for those
who can afford it. Music is a basic right of
every boy and girl. This fact has received
growing recognition in our school system over
the past decade. Music in one form or an-
other, is a required course of study in all of
the elementary grades and is an elective
course in high schools and colleges.
Our case for elimination of the excise tax
as it applies to the musical instrument in-
dustry is based on the following premise.
That 82% of all musical instruments are
purchased for educational purposes.
That there is a critical age for musical
learning of a child which should not be
abridged.
That 10.3% of all musical instrument
sales reperesent the working tools and es-
sential means of livelihood of music teach-
ers and musicians.
82%
For Education
"That 82% of musical instruments are pur-
chased for educational purposes is evidenced
by figures compiled by this Association from
questionnaires sent to our membership, who
account for approximately seventy-five per
cent of all musical instrument sales.
'Of total piano sales, 82% ar- purchased
by schools, students, private teachers, parents
for home use, religious organizations, , and
character building agencies such as YMCA's,
YWCA's, CYO, 4-H dubs, etc. (See Appendix
1-A)
"Of total band and orchestra instrument
sales, 93% are purchased by students or par-
ents of students, schools, private teachers,
religious organizations and character building
agencies in approximately that order, with in-
dividual purchases for or by students account-
ing for 70 percentage points of the 93% of
the total. (See Appendix 1-A)
"Other instrument sales, which include mis-
cellaneous string, fretted and percussion in-
struments such as guitars, mandolins, drums
and xylophones, 7 1 % are accounted for bv
sales to this same educational category of
students, schools, private teachers, religious
organizations and character building agencies.
The 10% Manufacturer's Excise Tax on
musical instruments was imposed by an Act
of Congress as part of the Internal Revenue
Act of 194-1. The United States at that time
was being engulfed in a global war and the
Congress was faced with the task of seeking
not only unusual amounts of new revenue to
assist in financing the war, but there was
also the problem of discouraging private
spending in order to divert critical materials
and manpower to war material. Within a few
months after the imposition of the Excise
Tax, under the stress of war, the Musical In-
strument Industry, education and arts suffered
further upon being ordered to cease produc-
tion of newly manufactured instruments.
"On July 3, 1948 the President of the Unit-
ed States signed into Law, House Resolution
6808 which carried an Amendment provid-
ing for the exemption of the 10% Manufac-
turers Excise Tax on musical instruments
when purchased by religious and/or non-
profit educational institutions. The effect of
this exemption was immediate in increased
sales to churches and schools, but it did not
materially increase total sales.
Discriminatory
Ke'ii'f
"While this relief was an important factor,
educational and religious-wise, it was none-
theless discriminatory in that a majority of
sales for educational purposes are made direct
to students for schools and home instruction
and to music teachers to whom musical in-
struments represent vocational tools of their
trade, not only in their homes but in private
schools as well. Religious-wise such semi-
religious organizations as the Masonic Order,
Knights of Columbus, I.O.O.F. and others
were not permitted to qualify for exemption.
School budgets for musical instruments are,
and have been notoriously small and inade-
quate with the result that the tax on musical
instruments has fallen heavily on self-sacrific-
ing parents who seek to give a rounded edu-
cation to their children.
"The mere fact that a child is learning to
play a musical instrument at home rather than
in school should make no difference in the
application of the excise tax. The school-
owned instrument is excise tax free, but not
so the instrument in the home, the \ery bul-
wark of our nation.
"It is well established that children should
begin their musical education before they are
12 years of age. If education in music has
not started by that time the child will seldom
start at all. Their devotion to training in
music may easily be the dividing line between
right and wrong.
THE MUSIC TRADE REVIEW, AUGUST, 1953
W. R. GARD
Executive Secreta
RUSSELL B. WELLS
President
NAAAAA Enters Plea for Removal
of Excise Tax on Musical Instruments
The Ways and Means Committee of
the House of Representatives held hear-
ings regarding manufacturers exeise
taxes during the period of July 28.
through August 6. The National Asso-
ciation of Music Merchants was invited
to state its views to the \^ ays and Means
Committee regarding the 10% excise
tax on musical instruments.
Printed on these pages is a state-
ment by Executive Secretary William
K. Card which was filed with the House
\\ ays and Means Committee pertaining
to the elimination of the 10% manu-
facturers excise tax.
The hearings before the House Ways
and Means Committee were "pro-
forma" and, therefore, a personal ap-
pearance was not made. Upon advice
of the JVAMM's Washington Counsel,
the case against the tax by the Associa-
tion was made by filing the following
statement.
Executive Secretary Card received
the approval of the Committee to aug-
ment the statement of July 30. with new
data yet to be compiled in view of the
fact that the hearings of July and Aug-
ust were advanced from the prospective
Fall schedule, at which time the Com-
mittee had expected to reach the excise
tax subject hearings.
A supplementary statement combin-
ing up to date statistics will be com-
piled by the NAMM during the Fall,
and when Congress reconvenes in Janu-
ary the Association will then appear
before the Committee, at the time the
House Ways and Means Committee
writes its bill for the consideration of
both the House and Senate.
The Association is not urging any
action on the part of its members
at this time and will not request that
any local action be taken until after
January and the reporting out by the
Committee of an actual bill to revise
26
the tax structure.
After stating his position and that
he represented 3000 retail dealers of
Musical Merchandise. Mr. Card staled:
"Upon the conclusion of my testimony. I
am sure you will realize that I also speak for
millions of American students in all grades of
public, parochial and private schools; for the
millions of parents of these students, and
the teachers who instruct them.
"Music is no longer a privilege for those
who can afford it. Music is a basic right of
every boy and girl. This fact has received
growing recognition in our school system over
the past decade. Music in one form or an-
other, is a required course of study in all of
the elementary grades and is an elective
course in high schools and colleges.
Our case for elimination of the excise tax
as it applies to the musical instrument in-
dustry is based on the following premise.
That 82% of all musical instruments are
purchased for educational purposes.
That there is a critical age for musical
learning of a child which should not be
abridged.
That 10.3% of all musical instrument
sales reperesent the working tools and es-
sential means of livelihood of music teach-
ers and musicians.
82%
For Education
"That 82% of musical instruments are pur-
chased for educational purposes is evidenced
by figures compiled by this Association from
questionnaires sent to our membership, who
account for approximately seventy-five per
cent of all musical instrument sales.
'Of total piano sales, 82% ar- purchased
by schools, students, private teachers, parents
for home use, religious organizations, , and
character building agencies such as YMCA's,
YWCA's, CYO, 4-H dubs, etc. (See Appendix
1-A)
"Of total band and orchestra instrument
sales, 93% are purchased by students or par-
ents of students, schools, private teachers,
religious organizations and character building
agencies in approximately that order, with in-
dividual purchases for or by students account-
ing for 70 percentage points of the 93% of
the total. (See Appendix 1-A)
"Other instrument sales, which include mis-
cellaneous string, fretted and percussion in-
struments such as guitars, mandolins, drums
and xylophones, 7 1 % are accounted for bv
sales to this same educational category of
students, schools, private teachers, religious
organizations and character building agencies.
The 10% Manufacturer's Excise Tax on
musical instruments was imposed by an Act
of Congress as part of the Internal Revenue
Act of 194-1. The United States at that time
was being engulfed in a global war and the
Congress was faced with the task of seeking
not only unusual amounts of new revenue to
assist in financing the war, but there was
also the problem of discouraging private
spending in order to divert critical materials
and manpower to war material. Within a few
months after the imposition of the Excise
Tax, under the stress of war, the Musical In-
strument Industry, education and arts suffered
further upon being ordered to cease produc-
tion of newly manufactured instruments.
"On July 3, 1948 the President of the Unit-
ed States signed into Law, House Resolution
6808 which carried an Amendment provid-
ing for the exemption of the 10% Manufac-
turers Excise Tax on musical instruments
when purchased by religious and/or non-
profit educational institutions. The effect of
this exemption was immediate in increased
sales to churches and schools, but it did not
materially increase total sales.
Discriminatory
Ke'ii'f
"While this relief was an important factor,
educational and religious-wise, it was none-
theless discriminatory in that a majority of
sales for educational purposes are made direct
to students for schools and home instruction
and to music teachers to whom musical in-
struments represent vocational tools of their
trade, not only in their homes but in private
schools as well. Religious-wise such semi-
religious organizations as the Masonic Order,
Knights of Columbus, I.O.O.F. and others
were not permitted to qualify for exemption.
School budgets for musical instruments are,
and have been notoriously small and inade-
quate with the result that the tax on musical
instruments has fallen heavily on self-sacrific-
ing parents who seek to give a rounded edu-
cation to their children.
"The mere fact that a child is learning to
play a musical instrument at home rather than
in school should make no difference in the
application of the excise tax. The school-
owned instrument is excise tax free, but not
so the instrument in the home, the \ery bul-
wark of our nation.
"It is well established that children should
begin their musical education before they are
12 years of age. If education in music has
not started by that time the child will seldom
start at all. Their devotion to training in
music may easily be the dividing line between
right and wrong.
THE MUSIC TRADE REVIEW, AUGUST, 1953
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