THE Excess Profits Tax Act of 1950, which I have signed today, is the second step the Congress has taken since the start of aggression in Korea to help meet the rapidly rising costs of national defense. The Congress and its committees have acted with commendable speed in completing this complex piece of legislation and thereby have provided evidence for all to see that we are determined to finance the defense program without jeopardy to the stability of our economic system or the soundness of the Government's finances.
The 1950 tax legislation has increased Federal revenues very substantially. However, the task ahead of us will require more and much heavier taxes. I shall, in due course, submit to the Congress recommendations for substantial tax increases.
We shall have to canvass and recanvass every revenue possibility, including the new excess profits tax. In developing this tax in the few weeks at its disposal, the Congress may have been overly liberal in its concern over some corporations in special circumstances. Some of the provisions of this bill will probably give an undue advantage to some corporations, especially in relation to the tax burdens necessarily borne by others. Excessive exemptions and relief provisions create inequities and reduce the Government's revenues needlessly. For this reason, I am requesting the Secretary of the Treasury to keep excess profits tax under continuous review so that if it develops that some of its provisions need revision, the facts can be placed before the congressional committees without delay.
Note: The Excess Profits Tax Act of 1950 is Public Law 909, 81st Congress (64 Stat. 1137).
Harry S Truman, Statement by the President Upon Signing the Excess Profits Tax Act of 1950. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/231023