Second Revenue Act of 1940
The United States Second Revenue Act of 1940 created a corporate excess profits tax (top rate 50%) and increased corporate tax rates (top rate from 33% to 35%).
Tax on corporations
Normal tax
A Normal Tax was levied on the net income of corporations as shown in the following table.
| Second Revenue Act of 1940 Normal Tax on Corporations | |||
| Net Income (dollars) |
Rate (percent) | ||
| 0 | 22.1 | ||
| 25,000 | 35 | ||
Excess Profits Tax
A Excess Profits Tax was levied on the excess profits net income (i.e., net income less allowances and exemptions) of corporations as shown in the following table.
| Second Revenue Act of 1940 Excess Profits Tax on Corporations | |||
| Adjusted Excess Profits Net Income (dollars) |
Rate (percent) | ||
| 0 | 25 | ||
| 25,000 | 33 | ||
| 50,000 | 35 | ||
| 100,000 | 40 | ||
| 250,000 | 45 | ||
| 500,000 | 50 | ||
- An exemption of $5,000 is allowed, and also an "excess profits credit" and "unused excess profits credit."
References
This article is issued from
Wikipedia.
The text is licensed under Creative Commons - Attribution - Sharealike.
Additional terms may apply for the media files.