Excess--Profits Sham

October 1940
New Republic;10/7/40, Vol. 103 Issue 15, p467
Focuses on the excess-profits-tax bill being discussed in the U.S. Senate. Estimation made by Senator Robert Marion La Follette, that the bill will raise only $115,000,000 from excess profits; Motive behind passing the bill is the desire to offer industry special encouragement so that it will cooperate fully in the defense program; Importance of the bill in suspending the eight-percent profit limitation on ship and airplane contracts; Permission for corporations constructing new plant essential to the national defense to amortize the total cost of such plants out of tax-free earnings over a period of five years.


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