Thousands of U.S. corporation lawyers last week were attacking in force at a seeming loophole in the U.S. tax laws. Their objective: to get back almost half an estimated $7 billion of excess profits taxes which their companies have paid to the government since 1940. This, very possibly, would double their annual profits overnight. The loophole: Section 722, a "relief" amendment which Congress had tacked on to last year's tax bill.
The passage of Section 722 was political fence-mending of a high and tricky order. In 1940 Congress had plastered U.S. corporations with a 40% to 60% graduated tax on their excess...
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