PLANS FIGHT FOR REPEAL OF EXCESS PROFITS TAX
Representative Godwin, of North Carolina, Will Ask Congress for More Equitable Measures.
Would Have Necessary Revenue Rates by Straight 5 Percent Tax on All Net Earnings of All Corporations.
(Special to The Times-Dispatch.)
WASHINGTON, April 1.?Representative Godwin, of North Carolina, today announced his intention to ask Congress to repeal the legislation putting an "excess profit tax" on corporations for the benefit of the special preparedness fund. Mr. Godwin contends this tax works an unjust hardship on the South.
In a statement today he said:
"I am against this tax because I am convinced that it will not be distributed fairly among the corporations, business throughout the country. I am especially convinced that it will not be hard, and let off many Northern corporations and companies scot-free."
"The law, as it stands now, is that any corporation or company shall pay, at the close of the present year as the first taxable year, in addition to the regular income tax, a tax of 5 percent on whatever amount the net proceeds of the concern shall exceed by 5 percent its capital stock.
"This means that the  The biggest corporations of the country, with their immense divisions of stock or issues of stock, can roll up gigantic profits and yet not have to pay taxes, because their profits will not exceed their capitalizations. In the South, however, where concerns are capitalized on the strictest business principles and with small capital, the tax will be from a terrific burden. 