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

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

53  Stat.   974 [1]

Net Income
(dollars)
Rate
(percent)
022.1
25,00035

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

53  Stat.   975 [2]

Adjusted
Excess Profits
Net Income
(dollars)
Rate
(percent)
025
25,00033
50,00035
100,00040
250,00045
500,00050

References