TAXES: Du Pont Collects

Among the inequities of the World War II excess profits tax was the definition of "normal earnings" as the average profits for the years 1936-39. Anything over the average was taxable at a maximum rate of 90%. Many corporations complained that the base was unfair since they had been pouring money into expansion or new products during the '36-'39 period, thus their earnings were smaller than normal. For them, Congress left a loophole in the act: section 722. It provided for a rebate for corporations who could prove their 1936-39 average abnormally low.

Last week Du Pont reached through the loophole...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!