Show HOUSE PASSES TAX ON PROFITS WASHINGTON Aug 29 UP uPI uPI- Ex Excess ess profits tax tax l legislation carrying provisions designed to speed up up expansion of industrial la defense facilities was passed pass pas's d s swiftly swiftly swift swift- ly 1 by the house ouse Thursday and sent to the senate The bill passed on a voice vote Imposing a profits levy of 20 to 50 per cent the legislation also would permit defense contractors to deduct from taxable income lover over a year five-year period the entire cost of new facilities installed in connection with defense I Another section of the bill would suspend during operation I of the excess profits tax 8 and 7 per cent limitations on manufacturers manufacturers' manu manue profits from warships and military aircraft The defense commission and military departments urged the plant amortization plan and the suspension of profit limitations as asa asa asa a means of encouraging contractors contractors c- c I tors to sign armament contracts quickly The profits tax was estimated by experts to have a potential yield of In 1940 and in a year thereafter The legislation was rushed through the house in a single le day under procedure permitting no amendments except those approved by y the ways and means commit- commit tee ee Total debate was was' limited to towo two wo hours Under the taxing provisions all corporations would be allowed a flat lat exemption This the ways and means committee said would exempt some corporations corporations corporations cor cor- from the tax Above the exemption all corporations corporations corporations corpo corpo- rations would be permitted to earn at least 7 per cent on the first of their invested capital and 5 per cent on the remainder of their heir investments without paying the excess profits levy Corporations with higher average average average aver aver- age earnings during a base period 1939 1936 would pay no excess profits tax lax on amounts equal to their heir average earnings but would be e subjected to an income tax rate increase from to 25 per cent I |