Mr. EBERHARTER. I ask unanimous consent that there be inserted in the record at this point a statement covering the subject of excise taxes on amusement parks by Mr. John E. Laughlin, Jr. The CHAIRMAN. Without objection it is so ordered. (Mr. Laughlin's prepared statement follows:) STATEMENT IN BEHALF OF KENNYWOOD AMUSEMENT PARK, PITTSBURGH, PA., BY JOHN E. LAUGHLIN, JR., ESQ., OF THORP, REED & ARMSTRONG, PITTSBURGH, 19, PA. PROPOSED EXEMPTION OF AMUSEMENT PARKS FROM FEDERAL ADMISSIONS TAXES The motion-picture industry may have presented a good case for exemption from the admissions tax but amusement-park operators are entitled to even greater consideration. Amusement parks are patronized primarily by children and family groups. As a result, the competition of television is as great as it is to the picture industry. Moreover, the amusement-park business must compete with motion pictures, and particularly drive-in theaters, all of which are obtaining relief from the tax. The admissions tax is particularly troublesome to amusement parks because, as indicated, children are its most important customers. The exemption now provided by the code for children does not help the situation because only children under 12 years of age are exempt and then only if the admission charge is less than 10 cents. Most charges are 10 cents or 15 cents and on these the exemption is not available. The exemption, moreover, entails serious collection difficulties because of the necessity of determining, in individual cases, whether or not the tax applies. Another problem is presented by the fact that the admissions tax in an amusement park is repetitive. A patron can attend a motion picture for 2 hours and pay but 1 tax, but if he patronizes eight 10-cent amusements in a park, which is perhaps the average attendance, he pays 8 separate taxes, with the result that in spending less than $1, 96 cents to be exact, the customer pays 16 cents of it in taxes. If an exemption should be allowed to amusement parks, operators would pass on the savings to their customers and would not gain on the transaction except to the extent that the customer might have more money to spend on amusements. We do not know the exact amount of the revenue loss to the Government from the proposal to exempt amusement parks but we are assured that it would be less than $11 million a year as against the $100 million or greater loss estimated to result from the motion-picture exemption. Mr. UTT. I would like to make a short statement for the record, and that is that the staff's attention should be called to a bill which I introduced, to eliminate the admissions tax on Boy Scout activities. They were supposedly included in a former amendment to the code a few years ago, which included 4-H Girls and Campfire Girls, but the Revenue Bureau ruled that the Boy Scouts did not qualify under that exemption. I hope that the committee takes that into consideration on the revision of the code. The CHAIRMAN. I want to congratulate you on the way you presented that matter, and I certainly go with you in the hope that it will receive consideration. We stand adjourned. (The following material was submitted for the record:) THE AMERICAN LEGION, Washington, D. C., August 6, 1953. Hon. DANIEL A. REED, Chairman, Committee on Ways and Means, House of Representatives, House Office Building, Washington 25, D. C. DEAR MR. CHAIRMAN: The American Legion is very much interested in Federal tax on admissions as it applies to our junior baseball program, which is national in scope. Cooperating with the American Legion, Representative Thomas E. Martin introduced H. R. 6610 on July 29, the purpose of which is to exempt from the admission tax certain amateur athletic games and exhibitions. The American Legion strongly supports this measure and urges the full consideration of the committee to the end that this exemption may be granted. The American Legion junior baseball program is now in its 27th consecutive year of providing a summer recreation program to boys 17 years of age and under. Today there are approximately 16,500 teams in organized junior baseball competition. Junior baseball at the National, State, and local level is absolutely on a nonprofit basis. In fact, this program is carried on at a loss when considering cost as against revenue. The national program, which includes the elimination tournaments leading to the junior world series, and the junior world series itself, is almost entirely financed by contributions from the National and American Leagues, through Baseball Commissioner Frick's office. At the State level the program is financed largely by the State departments of the American Legion, and at the local level the financial assistance comes from individual contributions and business firms who aid in the sponsorship of individual teams. Of course, there is some revenue from gate receipts to offset the cost of this program, but gentrally it is relatively small, and as a result there are net losses in the sponsorships in most cases. Wherever any profits do accrue they are channeled back into the junior baseball program for sponsorship of additional teams, etc. Removal of the Federal admission tax on junior baseball games would permit an expansion of this very worthwhile youth program. We urge your consideration to that end. I am enclosing a copy of the American Legion's Resolution No. 370, which was adopted at our last national convention at New York, August 25-28, 1952. For your further information I am also attaching a small booklet on the 1953 American Legion's junior baseball program. Sincerely yours, MILES D. KENNEDY, Director. (Whereupon, at 9:06 p. m., the committee recessed.) GENERAL REVENUE REVISION THURSDAY, AUGUST 6, 1953 HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, Washington, D. C. The committee met, pursuant to recess, at 7 p. m., in the Ways and Means Committee room, Hon. Daniel A. Reed (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee will continue hearing testimony this evening on excise tax rates. We will welcome as the first witness Mr. Victor Paul, vice president of the Wiss Stores in the State of New Jersey and appearing as chairman of the Retail Jewelers Tax Committee, which represents all segments of the jewelry industry in the United States. Mr. Paul, it is a great pleasure to have you with us tonight. Give your name and the capacity in which you appear to the reporter and we will be delighted to hear you. STATEMENT OF VICTOR PAUL, CHAIRMAN, RETAIL JEWELERS TAX COMMITTEE, INC. Mr. PAUL. My name is Victor Paul. I am vice president of the Wiss Stores, retail jewelers, operating four stores in New Jersey. I am chairman of the Retail Jewelers Tax Committee, a committee which represents all segments of the jewelry industry in the United States. On our committee and advisory board are retailers, suppliers, and manufacturers of the various categories of products subject to the retail jewelry excise tax as well as representatives of the jewelry labor unions. My presentation, therefore, is made on behalf of the entire jewelry industry-43,378 retailers, wholesalers, and manufacturers of jewelry, watches and silverware in the United States and several hundred thousand workers. The companies for whom I speak, with very few exceptions, come under the Government's classification of small business. My statement will cover six brief points supplemented by additional material which will be submitted to the committee for the record. The CHAIRMAN. That will appear in the record. Mr. PAUL. Thank you, Mr. Chairman. (The information referred to follows:) Number of jewelry establishments, 1952 and 1946 Source: The Jewelers Board of Trade, Providence, R. I. Published in National Jeweler, January 1953. Presented by Retail Jewelers Tax Committee, Inc., Aug. 6, 1953. Nebraska__ 378 Virginia--- 1, 223 Washington_-_ 1,277 West Virginia__- 291 Wyoming___. 176 366 Total_ 36, 606 Source: The Jewelers Board of Trade, Providence, R. I. Published in National Jeweler, January 1953. Presented by Retail Jewelers Tax Committee, Inc., August 6, 1953. Source: U. S. Treasury Department. Published in Treasury Bulletin. Presented by Retail Jewelers Tax Committee, Inc., August 6, 1953. NOTE. No survey conducted in 1951; profit figures before income taxes. Source: F. B. Todd & Co., New York. Published by Retail Jewelers Bulletin, August 1953. Presented by Retail Jewelers Tax Committee, Inc., Aug. 6, 1953. Analysis of consumer expenditures on jewelry and watches Millions 1946 actual___. $1,419 1947 actual___. 1,348 1946-47----. 1,383 1952 actual__. 1952 projected on the basis of the increase in expenditures for all consumption purposes-up 40 percent from 1946-47- 1,936 1, 424 1952 below projection--- 512 Source: Actual figures, Department of Commerce. Presented by Retail Jewelers Tax Committee, Inc., August 6, 1953. Changes in expenditure for jewelry and watches, compared with changes in personal income and consumption expenditures Source: U. S. Department of Commerce. Published in Survey of Current Business. Presented by Retail Jewelers Tax Committee, Inc., August 6, 1953. |