Watch The Case Against the 20% Federal Admissions Tax on Motion Picture Theatres for Free: How to Stream the Movie Online at 123Movies. . 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.