Television digest with electronic reports (Jan-Dec 1954)

V with Electronics Reports WASHINGTON 5, D C. • TELEPHONE STERLING 3-1755 NO EXCISE TAX RELIEF FOR TV-RADlO: The TV-radio-phonograph industry, along with the automotive, got caught in a political squeeze play on Capitol Hill this week — and lost its valiant fight for excise tax relief by Senate vote of 64-23. This despite Senate's adoption of Capehart Amendment, the preceding day, cutting excise taxes on other household appliances from 10% to 5% as of April 1, 1954. Whether the appliance reductions will stick, in face of Administration opposition, isn't at all certain. This may be known in few days if House-Senate conference committee shapes final tax bill in form for submission to both houses next week. Capehart Amendment would cut taxes on refrigerators , stoves, fans, water heaters, flatirons, air conditioners, electric blankets, toasters, mixers, broilers, clothes driers, dishwashers, polishers, garbage disposals, home freezers — among main items. After GOP Sen. Capehart 's proposal to halve the appliance tax was passed. Sen. Douglas fP-Ill. ) demanded it be extended to TV-radio-phonos. He argued mainly that their sales were down about 40%, employment off some 25%. But his own party's Finance Committee leadership opposed further losses of excise revenues. Chairman Millikin (R-Colo.) asserted the Treasury would lose |80,000,000 from TV and radio alone. Ranking minority member. Sen. George (D-Ga. ) , 24 other Democrats and 39 Republicans voted against, 18 Democrats, 4 Republicans, 1 Independent for. * * * * As things stand now, it looks like a lot of luxury items (like jewelry, furs, perfumes) will get excise tax relief — but not TV-radio, or even automobiles which Sen. Douglas also tried to get cut to 7% from present 10%. And it's not certain household appliance cut on final vote can surmount Administration opposition. Thus despite the efforts of GOP Sen. Capehart, the Democrats can claim they tried to help the average householder but were thwarted by GOP. Only chance left for TV-radio is possible inclusion of a cut in the broader revenue bill now before the House. But from practical standpoint, though some legislators are quite sympathetic, very little chance is seen. So it looks now like the TV-radio industry is one of the very few consumer goods producers not getting even a modicum of relief in pending legislation — but through no lack of effort on the part of RETMA pres. Glen McDaniel, tax committeeman Maurice Paul (Philco) and special counsel F. Cleveland Hedrick, who carried the fight in committee and called on Senators during the floor fight. Nor of the many manufacturers, distributors and dealers who wired their Senators. * * !|5 * Seems that the continuing high rate of TV unit production and sales, albeit prices and profits are way down, had something to do with defeat of the TV-radio excise cut. For Sen. Millikin quoted from March Survey of Current Business, Dept, of Commerce, which stated that Jan. retail sales of TV sets were higher than a year ago and only slightly under Dec. He also said color probably was deterring TV sales. What Sen. Millikin didn't note was that the same survey, reporting gradual easing of business this year, stated that manufacturers of hard goods like TVs and refrigerators have been suffering most. "This has resulted in large part from the continued liquidation of inventories. . .and a further drop in activity in the plants producing defense goods," said the Survey. The argument against the excise cut, however, was basically the loss of revenue to the U.S. Treasury. Pro arguments, supported by labor unions and strongly espoused by Sen. Douglas, ex-professor of economics from a state pivotal to the TVradio industry, were based on some hard statistics on individual plant employment. From a normal complement of 48,140 workers in 34 plants. Sen. Douglas noted nearly 1200 have been laid off, detailing individual plant layoffs as listed on p. 11. 10