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Revenue Act of 1940

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The Revenue Act of 1940 temporarily and permanently increased individual income tax rates, temporarily and permanently increased corporate tax rates (top rate rose from 19% to 33%), and temporarily increased most excise tax rates to 30-50%.

Contents

The personal exemption fell from $2,500 to $2,000 (married couples).

Normal tax

A Normal Tax was levied on the net income of corporations as shown in the following table.

Tax on individuals

A normal tax and a surtax were levied against the net income of individuals as shown in the following table.

  • Exemption of $800 for single filers and $2,000 for married couples and heads of family. A $400 exemption for each dependent under 18.

    • References

    Revenue Act of 1940 Wikipedia
    (Text) CC BY-SA