The Case Against the 20% Federal Admissions Tax on Motion Picture Theatres

'The Entire Motion Picture Industry Presents' this film. At the time this film was made, motion picture theaters were required to pay a 20% tax on gross ticket sales, and Congress was debating lowering this tax (as well as others) in a bill being considered by a Congressional committee. This film, which was made especially to be shown to members of the committee, sets forth the motion picture industry's case for reducing, if not eliminating, the tax. It presents statistics regarding the closing of theaters in general (approximately 4500 US theaters, or about 25%, from 1946 through 1952), and the number of theaters that have closed in each committee member's state. These closings have caused a steady decline of revenues. Additionally, theater owners in various midwestern cities tell how this tax has adversely affected their businesses. In the small town of Holton, Kansas, merchants state that the closed movie theater was the city's main entertainment center. Without it to draw people into the city, business has fallen greatly. In closing, a spokesman states that the industry is not asking for special favors, but wants to be treated the same as any other industry when it comes to taxes.