Revenue Act of 1940
The Revenue Act of 1940 permanently increased individual income tax rates in the United States; permanently increased corporate tax rates from 19% to 33%; and temporarily increased most excise tax rates to 30-50%. The personal exemption fell from $2,500 to $2,000 (married couples).
Tax on corporations
Normal tax
A Normal Tax was levied on the net income of corporations as shown in the following table.
| Revenue Act of 1940 Tax on Corporations | |||
| Net Income (dollars) |
Rate (percent) | ||
| 0 | 19 | ||
| 25,000 | 33 | ||
Tax on individuals
A normal tax and a surtax were levied against the net income of individuals as shown in the following table.
| Revenue Act of 1940 Normal Tax and Surtax on Individuals | |||
| Net Income (dollars) |
Normal Rate (percent) |
Surtax Rate (percent) |
Combined Rate (percent) |
| 0 | 4 | 0 | 4 |
| 4,000 | 4 | 4 | 8 |
| 6,000 | 4 | 6 | 10 |
| 8,000 | 4 | 8 | 12 |
| 10,000 | 4 | 10 | 14 |
| 12,000 | 4 | 12 | 16 |
| 14,000 | 4 | 15 | 19 |
| 16,000 | 4 | 18 | 22 |
| 18,000 | 4 | 21 | 25 |
| 20,000 | 4 | 24 | 28 |
| 22,000 | 4 | 27 | 31 |
| 26,000 | 4 | 30 | 34 |
| 32,000 | 4 | 33 | 37 |
| 38,000 | 4 | 36 | 40 |
| 44,000 | 4 | 40 | 44 |
| 50,000 | 4 | 44 | 48 |
| 60,000 | 4 | 47 | 51 |
| 70,000 | 4 | 50 | 54 |
| 80,000 | 4 | 53 | 57 |
| 90,000 | 4 | 56 | 60 |
| 100,000 | 4 | 58 | 62 |
| 150,000 | 4 | 60 | 64 |
| 200,000 | 4 | 62 | 66 |
| 250,000 | 4 | 64 | 68 |
| 300,000 | 4 | 66 | 70 |
| 400,000 | 4 | 68 | 72 |
| 500,000 | 4 | 70 | 74 |
| 750,000 | 4 | 72 | 76 |
| 1,000,000 | 4 | 73 | 77 |
| 2,000,000 | 4 | 74 | 78 |
| 5,000,000 | 4 | 75 | 79 |
- An exemption of $800 for single filers and $2,000 for married couples and heads of family was allowed, as was a $400 exemption for each dependent under 18.
References
This article is issued from
Wikipedia.
The text is licensed under Creative Commons - Attribution - Sharealike.
Additional terms may apply for the media files.