Evening star., 1931-12-11
MELLON D|SPELS
RADIO TAX FEARS.
Levy on Receivers Now in Use
Not to Be Sought, but New
Machines Must Pay.
BY ROBERT MACK.

Fears that tax might be levied on
radio receivers now In use to help
Uncle Sam regain his fiscal financial
equilibrium we're dispelled with the
recommendations of Secretary of the
Treasury Mellon to Congress for a new
tax structure.
Radio is expected to contribute a por-
ton of the new revenue, but not in that
manner. A fat tax Of S per cent on
radio receivers, tubes and other acces-
sories, theoretically to be footed by the
manufacturer but actually to be paid
by the consumer, Is recommended by
the Treasury to Congress. There will
be a strenuous battle against the tax,
however, on the ground that radio no
longer can be classified as luxury. or
even a semi-luXury, but that 1t now is
an integral part Of the modern living
standard.
Many Feared Tax.
1t Is no secret that many radio lis
teners have feared an annual radio set
tax, like that levied in foreign countries
to defray the cost of radio administra-
ton. This was evidenced as far back
as April, 1880, when the decennial pop
ulation census was taken. At that time
census enumerators asked at every door
whether radio set was owned. simply
for the purpose of determining how
many radios actually were in use and
the size Of the radio audience. MANY
people, however, thought it was simply
check-up by the Government for tax
assessment purposes.
How much the Government expects
Iron per cent manufacturers sales
tax'' on radio and phonograph equip
ment and accessories has not been di-
vulged by the Treasury. Practically II
would mean that a sl0O set would cost
s1o5, because the manufacturer would
not absorb that s5 tax himself.
The fact that the recommendation
Tor tax is made, however, does not
mean that tax will be levied. There
Will be hearings before congressional
committees with respect to the general
proposal that the so-called luxury taxes
which were imposed under the 1924
excise provisions be restored and there
Will be opposition from every quarter.
The Radio Manufacturers Association
and the National Association of Broad
casters already have resolved in formal
resolutions to resist any such efforts.
Revenue Would Be $4,000, 900.
The radio industry estimates that
some 100000 new sets will be sold
this year. With the average price per
set placed at 500, because of the large
number OF low-priced midgets on the
market, the revenue would be approx
mately $l5,000000 for this item alone
on per cent tax. Tube sales and
other apparatus, both transmitting and
receiving, would swell that figure per-
haps to about $50,000,000.
The Treasury estimates a deficit for
the fiscal year 1882, now current, of
81, 122 ,6S3,865. Secretary Mellon said
he hoped to realize s205, 200, 900 from
the miscellaneous tax proposals for the
six-month period from January through
June, 1882. The increase for the fiscal
year 1888 he estimated at $514,000 900,
But many other items, like amusement
taxes, taxes on checks and bank drafts,
stock transactions and all toll comuu,
nications would be called upon, along
with radio, to make up this emergency
Jackpot. A tax on telephone, telegraph,
cable and radio messages of S cents for
charges IN the amount of IA to so
cents and of 10 cents for charges In