Evening star., 1954-04-01
Public Enjoys
First Taste Of
Lower Exciises
Retailers Happily
Pass Along Savings
In New Tex Law

In New Tux Law
The buying public got it's first
taste Of the new lower excise
taxes today and seemed to favor
1t.
So did the retailers, who for
the most part were happily pass
ing along to the consumer their
own savings from the law wiping
out about 81 billion in taxes on
many items.
In brief. the picture was like
this:
On furs, jewelry, luggage and
toilet articles, on which the re-
tailers' tax was lowered from 20
to 10 per cent, the entire 10 per
cent saving was being passed
along to the consumer.
Theaters, many Of them al
ready hard pressed for exist
ence. were for the most part
passing along about a scent per
ticket saving.
Rebates Promised.
Railroad. airline and bus
passengers found their ticket tax
cut from Is to 10 per cent, and
were promised by at least one
road rebates on totally unused
tickets purchased before today.
Household appliance dealers
were passing along that part of
the per cent reduction on
manufacturers tax they thought
eventually would be made to
them.
Merchants found 1t too early
to discuss the full import of the
reductions, but most of those
interviewed expected a hearty
response.
Like the women who have
told me they were waiting until
today to buy their new $40
leather Easter purses" said one
leather goods dealer. "It was
easy to see why. Instead Of q
So tax, they'll now pay ST."
First Day Of Saving.
This was the first day the
public was treated to tax re-
ductions up to 20 per cent on
such items as furs, jewelry, lug
gage. toilet preparations, tele-
phone and telegraph service,
sporting goods, cameras, amuse-
ments, transportation and
household appliances.
In most cases it was a simple
matter of the retailer making a
direct slash of, say, the allow
able 10 per cent on furS. This
meant a fur coat which cost
$2,400 with taxi yesterday,
could be had for $4,000 today.
That left 5000 for the Gus
toner to spend on something
else.
The story became more COM
plicated on items for which the
manufacturer had been taxed.
This includes all household ap-
plianceS, cameras and sporting
goods.
Manufacturers who have paid
10 per cent tax on household ap-
plianceS have been told they will
be allowed a 5 per cent rebate
on goods still on retailers floors.
Washington household appli-
ance dealers were eager to pass
the reductions along today-as
much as they could in a still
confused picture.
While awaiting word from
manufacturers as to how much
of the reduction would be passed
along to distributors and retail
ers, most retailers were either
setting an arbitrary figure of
say, ,e3 per cent, on the saving
to the public, or were selling at
usual prices with a promise Of
rebates when the final tax re-
ductions were worked out.
Amount to Vary.
It was pointed out that diff
ferent manufacturers of house.
hold appliances will vary on the
amount of the 5 per cent de-
crease they will pass down the
line.
The Merchants and Manufac-
turerS' Association got out a bull
letin for its members explaining
how the reductions will affect
purchases made before today on
"time" plans.
In the case of layaway sales
entered into before April /,
where the purchaser does not
have possession or the right of
possession, the article will not
be considered as sold before
April /. This means that where
the tax has been cut from 20 to
10 per cent the customer will pay
only 10 per cent on the full
amount.
In the case Of installment
sales, conditional sales or chattel
mortgage arrangements, the old
20 per cent will apply to all pay
mentS made before April /, and
the new 10 per cent on all after
today.
Purchases made by charge ac-
count before today will carry
the full 20 per cent rate for the
entire amount.
AS railroads cut tax fares by
3 per cent, the Pennsylvania an
nounced that persons holding
wholly unuSued tickets pur-
chased before today may receive
the per cent rebate by taking