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Second Revenue Act of 1940

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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%).

Contents

Normal tax

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

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.

  • An exemption of $5,000 is allowed, and also an "excess profits credit" and "unused excess profits credit."
  • References

    Second Revenue Act of 1940 Wikipedia