Motion Picture Times (1931)

THE PUBLISHER’S IPAGE Again Taxation TW 0 weeks ago we warned of the strong possibility of a Federal tax on theatre admissions, Today the proposal of such a tax to be voted upon by the Congress is a reality. And, as we also warned, further taxation by the various states of the Union, will likely follow. During the last legislative sessions in assemblies throughout the country there were many state tax measures aimed against the motion picture industry — nuisance admission taxes. Fortunately most of them were defeated but they will be proposed again this year. For example, witness the 20 per cent admission tax proposal that, as this is being written, is being brought before the legislature of the State of Tennessee. WITH the Federal tax plan made by Secretary of the Treasury Mellon and recommended by President Hoover defeat of the proposal is not going to be so easy. Assessment of a tax on admissions as low as ten cents is taking in all of the motion picture theatres, the small ones as well as the big ones. Even during the war admissions of ten cents were exempt from the war tax as were child admission tickets. But that’s not the point. The point is that the vast majority of theatres, particularly many of the smaller situations are in no condition to absorb any additional burdens or be forced to pass a tax on to their patrons in the face of a cycle of lower price demands. WITHIN this industry there are several trade journals that make a strong feature of dollar figures, giving weekly receipts (largely computed by guess) of some 200 or more theatres. This information, if gotten into the hands of legislators, can be wi’ongfully used as was the case several months ago when a legislator in the State of Georgia boldly displayed a copy of a trade publication that published box-office figures and used it as proof that this industry was very prosperous and could afford the taxation he was endeavoring to put through against it. That should have been a lesson that the dollar publicity that has been rife in this industry can have a very harmful result. NO doubt a concerted effort will be made by the Hays organization together with leaders of the national exhibitor associations to defend the industry from the Mellon admission tax proposal. They will need the co-operation of every exhibitor all the way down the line. For their own interests exhibitors should be ready and not delay to carry forward any effort they are called upon to make. Just remember — if the Federal tax bill is enacted it will not only put many small theatres out of business but it will remain as a heavy drain on the industry for several years. It’s a most serious matter for thorough consideration and for a strong defensive action. BEN SHLYEN, Editornn^Chief WM. G. FORMBY, Managing Editor ▲jaociated PnblicationB. Inc.. General Offices: 4704 E. 9tb St., Kansas City. Mo. Ben Shlyen, President; H. F. Steen. Vice-Pres. ; Wm. G. Formby. Secretary. New York Office: 551 Fifth Ave., d»s. M. Mersereau. Mkt. ; Chicago Office, 1018 Be. Wabash Ave.. Calvin Hermer, Mgr. Tbe Associated Publications are: FILM TRADE TOPlOB, San Francisco, CaL : MOTION PICTURE TDCES. DaUas. Texas: THE REEL JOURNAL. Kansas City, Mo. ; MOVIE AGE, Bfinneapolis, Mnn.: MOTION PICTURE DIGC8T, Chicago. DL; MICHIGAN FILM REVIEW. Detroit, Mich.; KXHIBITORS’ FORUM. Pittsburgh, Pa.; THE OHIO SHOWMAN. asvedand. Ohio; NEW ■NGLAND FILM NEWS. Beaton. Mass.; WEEKLY FILM REVIEW, AUanta. Ga.