So perplexing are the tax laws of the U.S. that even the lofty Federal Court of Claims in Washington can contradict itself in interpreting them. Last week the court wrestled once more with the knotty issue of taxes on the warranties that manufacturers sell to guarantee that their appliances, cars, pens, etc. remain in good working order. The question: Should manufacturers pay the usual 10% excise tax on the price of the warranties? In 1954 and again in 1956, the Court of Claims answered yes. In 1957 it reversed itself, ruled no. Last week, turning full circle, it ruled yes...
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