Excess Profits Tax

November 3, 1950

Report Outline
Commitment to Revive Excess Profits Tax
Complications in Taxation of Excess Profits
Levies on Excess Profits in the World Wars
Special Focus

Commitment to Revive Excess Profits Tax

Moving to fulfill a commitment entered into by Congress before it recessed six weeks ago, the House Ways and Means Committee will open hearings Nov. 15 on a new excess profits tax. The hearings will necessarily be brief, for Chairman Doughton (D., N. C.) has said it is the committee's intention to have a bill ready for consideration by the House before the end of November. Both the House and the Senate must proceed expeditiously if they are to complete action on the measure before expiration of the 81st Congress and avoid leaving the job to be started over again by the new Congress.

Reimposition of a tax on excess profits of corporations, five years after repeal of the wartime levy on such profits, is being taken up at this time as a direct result of pressure applied during floor consideration of the tax increases incorporated in the Revenue Act of (Sept. 23) 1950. Efforts in Senate and House to include provisions for an excess profits tax in that measure failed, but the debate disclosed strong sentiment in favor of such a levy. Its proponents contended, moreover, that Congress should not increase the taxes of individuals, to help finance the Korean war and rearmament, without at the same time tapping extraordinary corporate profits anticipated from the rearmament program.

Pledge by Congress to Act on Excess Profits Bill

The Senate leadership recognized the political force of that argument on the eve of a general election by itself bringing in an amendment to the pending revenue measure to instruct the tax committees to report a bill for an excess profits levy in the first session of the 82nd Congress, but the House insisted that the commitment apply to the 81st Congress. The conference agreement provided that an excess profits tax bill should be reported “as early as practicable after Nov. 15 or, if the present Congress was not in session after that date, “as early as practicable” in the first session of the succeeding Congress. And the bill was to provide for a tax retroactive to Oct. 1 or July 1, 1950.

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Mar. 24, 1965  Excise Tax Cuts and the Economy
Feb. 15, 1961  Flexible Taxation
Apr. 02, 1959  State Tax Problems
Apr. 23, 1958  Tax Reduction, 1958
Aug. 14, 1957  Fast Tax Write-Offs
Apr. 10, 1957  Federal Payments in Lieu of Taxes
Sep. 12, 1956  Corporation Profits and Taxes in Prosperity
Mar. 16, 1954  Shares in Tax Relief
Nov. 21, 1953  Revision of Excise Taxes
Mar. 19, 1953  Federal-State Tax Relations
Oct. 01, 1952  European Taxes and Tax Evasion
Nov. 03, 1950  Excess Profits Tax
Feb. 01, 1950  Tax Loopholes
Jun. 04, 1949  Excise Taxes
Oct. 27, 1948  Postwar Sales Taxes
Aug. 29, 1947  Taxation of Family Income
Apr. 09, 1947  Income Tax Relief
Jan. 11, 1946  Taxation of Cooperatives
Oct. 16, 1945  Federal Taxes on Business
May 08, 1944  Postwar Taxes
Sep. 20, 1943  Sales Taxes
Dec. 05, 1941  New Taxes for Defense
Apr. 05, 1941  Taxation for National Defense
Feb. 28, 1941  Taxation of Alcoholic Beverages
Jan. 11, 1941  Exemptions from Taxation
Dec. 04, 1940  Federal Taxes and Defense Financing
Feb. 01, 1940  Sharing of Tax Revenues
Feb. 02, 1939  Turnover Taxes in the States
Nov. 05, 1937  Broadening of the Income-Tax Base
Jun. 17, 1937  Exemptions from Income Taxation
Apr. 05, 1937  Coordination of Federal and State Tax Systems
Dec. 19, 1936  Revision of Federal Tax on Capital Gains
Nov. 02, 1936  State Taxation of Natural Resources
May 26, 1936  Assessment of Property for Taxation
Apr. 17, 1936  Federal Taxes on Consumption
Mar. 19, 1936  Taxation of Undistributed Corporate Profits
Dec. 17, 1935  Reduction of Tax Burdens on Real Estate
Oct. 21, 1935  Tax Delinquency in the United States
May 21, 1935  Comparative Tax Burdens in America and Britain
Feb. 01, 1935  Federal Taxation of Corporations
Nov. 27, 1934  Elimination of Conflicts in Taxation
Jul. 25, 1933  Taxation of Excess Profits
Jan. 25, 1933  Tax Burdens and Tax-Free Securities
Nov. 23, 1932  The Beer Tax and the Sales Tax
Dec. 19, 1931  Sales Taxes: Federal, State, and Foreign
Sep. 18, 1931  Death Taxes and the Concentration of Wealth
Mar. 18, 1931  Federal Taxation of Large Incomes
Jan. 10, 1931  Taxation of Capital Gains
Nov. 09, 1929  Federal Tax Reduction-1930
Aug. 08, 1927  Federal Tax Reduction—1928
Sep. 27, 1926  Tax Reduction and the Public Debt
Jan. 16, 1926  Taxation of Estates and Inheritances
Nov. 07, 1925  Federal Taxation of Small Incomes
Nov. 28, 1924  Social, Fiscal and Legal Aspects of the Inheritance Tax
Apr. 07, 1924  Causes and Effects of the Tax Return Blockade
Dec. 12, 1923  Tax Exempt Securities
Dec. 10, 1923  Taxation
Commercial Law
Federal Taxes