The talking machine world (July-Dec 1927)

116 The Talking Machine World, New York, December, 1927 IN THE MUSICAL MERCHAJVDISE FIELD— (Continued from page 115) notiNEit W THE WORLD'S BESJiS^JtSt VIA cuynoruc4xs HOHNER. 1927 was the biggest year in the history o£ Hohtier Harmonicas. Did you share in this success? I£ not, plan now Sor 192S. Write us for our "Big Business Builders" They will help you. r 114-116 East 16th Street LUC. New York City HOHNER, PRODUCTS AWARDED FiRST PRIZE MT THE PANftMfl PfkCIFIC iNTEflNATIONnL EXPOSITION SaN FRANCISCO 1915" Partial Victory in Double Taxation Won Before Ways and Means Committee New Bill Will Contain Amendments Preventing Reaudit and Double Taxation — But Double Taxation Affecting All Returns Filed Under Present Law Will Continue Favorable action on the instalment income tax situation has been taken by the Ways and Means Committee of the House of Representatives. The administrative provisions of the new revenue bill will contain amendments preventing the reaudit, and consequent imposition of double taxation, of returns of instalment dealers made in accordance with the instalment regulations in effect prior to the passage of the 1926 Act. On the other hand, the bill will continue the double taxation features as affecting all returns filed under the existing regulations, as well as future returns. That the action of the committee is favorable to the music industry is indicated by the comments of Alfred L. Smith, general manager of the Music Industries Chamber of Commerce, who said: "While we failed to get all we asked of the committee, nevertheless, it has taken care of the situation about which we were most concerned. "Under the proposed amendments, it will still not be feasible for any merchants now reporting upon the cash or accrual basis to change to the instalment method. However, the Treasury Department will be prevented .from reauditing the many instalment returns from the music industry made in good faith during previous years under regulations which did not include the double taxation features and this is what we were primarily interested in. "The peculiarities of the instalment business are such that it is only just and proper that the instalment dealer should be able to report his taxes on the basis of collections made from instalment sales during the taxable year, rather than to report the entire sale, including the unrealized profits. The desirability and justice of such a method were recognized by the Treasury Department when the regulations were originally promulgated in 1919 and again by Congress when this method was recognized in the Revenue Act of 1926. It does not seem reasonable that Congress should make available a special method of tax reporting to meet special requirements and then offset all its advantages by dragging in a double taxation feature. However, with this point of view the Ways and Means. Committee does not agree. "The attitude of the committee was indicated during the hearings when one member stated that he thought that the instalment merchant had no real grievance, as the use of the instalment basis is optional, so that if these regulations were unsatisfactory the taxpayer naturally v.ould not adopt this basis. I then pointed out to the committee that the most serious situation did not lie with merchants who might later care to adopt this basis, but had to do with the returns previously filed in good faith in accordance with regulations which eliminated the double taxation feature. The committee now agrees with our position on this most important phase of the situation. "Newly established merchants who use the instalment basis from the commencement of their operations are not subject to the double taxation feature and hence find this basis desirable even under the present law and regulations, if they choose to adopt it. The only merchants not taken care of are those who are now using the cash or accrual basis and who in the future "Harmonica Bands for Bo3-s and Girls" is the title of the latest publication by the National Bureau for the Advancement of Music, an impressive illustrated thirty-two-page booklet 'designed to stimulate interest in harmonica playing on the part of those in charge of music in schools, settlements, playgrounds and various institutions, and to organizations interested in the musical development of the young. The first chapter outlines the social and educational value of the harmonica, particularly its importance as a means for developing interest in the voice, piano, and instruments of the band and orchestra. This is followed by a description of the excellent work in Philadelphia under the leadership of Albert N. Hoxie, a wealthy man who has given up his business to devote himself to public-spirited music activities. He organized the Sesqui-Centennial Harmonica Band, which has traveled all over the country, and has been largely responsible for the popularity of the harmonica in Philadelphia, where some 70,000 youngsters have learned to play that instrument. Another chapter, "The Harmonica Band in Action," shows what is being done in the organizing of the groups in all parts of the country, and is a revelation of how much can be accomplished with them under sympathetic direction. Perhaps even more significant is the section devoted to opinions of notable people, quoting musicians like John Philip Sousa, educators like Professor Peter Dykema, and many other well-known school officials, editors, club may desire to change to the instalment basis. "A number of members of the industry have expressed amazement that Congress would ever consider the continuance of any law which causes double taxation. The Committee has been guided largely by the report of the Joint Committee on Internal Revenue Taxation, whose recommendations, it is understood, have been followed largely by the Ways and Means Committee and which are as follows: " 'The double taxation feature, while not strictly equitable, is justifiable. In the first place, the instalment basis has always been optional with the taxpayer. In the second place, the change appears generally to have been beneficial to the taxpayers in spite of the double taxation feature. Finally, the difference in rates applicable to the taxable years in the past gave the taxpayer an unreasonable advantage when by changing his basis in a high tax year he was enabled to reduce his taxable income to a figure far below his true income computed on any consistent basis. This was the effect of the regulations with double taxation eliminated.' " leaders and welfare workers. All are convinced of the harmonica's efficacy in awakening the interest in music, taking the child pleasurably through much of the essential ground work, and leading him on to a desire to express himself on the more complicated, higher type instruments. In order that the booklet might furnish the necessary technical as well as general information, chapters have been included on organizing the harmonica class, arranging contests, and instruction helps, the latter including an abridgment of the manual, "How to Play the Harmonica," published by M. Hohner, Inc., a reproduction of harmony charts, and a classical composition arranged for harmonica with piano accompaniment. Finally there is a bibliography of further playing and instruction material. A letter has been sent out by the Bureau to the 15,000 music supervisors on the list of the Music Supervisors' Journal, announcing publication of the booklet and offering it free upon request to those interested. One of the points emphasized is what the harmonica is doing to improve interest in school music generally, and to increase the proficiency of the children in this subject. A similar announcement is being sent out to several hundred recreation workers in different cities. Dealers can do much to bring the benefits of harmonica playing on a large scale to their communities by interesting the right people. A wide participation in music making among the youngsters, through a medium they enjoy and can easily master, will add a great stimulus. National Bureau Advancement of Music Issues Publication on Harmonica Bands