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%).

Tax on corporations[edit]

Normal tax[edit]

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)
0 22.1
25,000 35

Excess Profits Tax[edit]

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)
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[edit]