Word: excessive
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Dates: during 1940-1949
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Last week the long-delayed Excess Profits Tax of 1940 emerged from conference in final form, passed Senate and House without a roll call, went to the President's desk for signature. The bill had been ordered by the President two months ago to prevent war millionaires. Far from doing that, shouted Massachusetts' Allen Treadway, "this bill sets up a new class of war millionaires-namely, so-called tax experts. Anyone who can explain this can become a millionaire overnight." Senator Vandenberg, who had had a succés with the phrase a few weeks before, repeated...
Normal Tax Upped. The bill is expected to yield the Treasury an extra $400,000,000 to $500,000,000 this year. Most of this, however, will probably not come out of "excess profits," but normal corporate earnings, on which (for all incomes above $25,000) the normal income tax is upped from...
...What Is "Excess"? In addition, "excess profits" are taxed on a graduated scale from 25% (under $20,000) to 50% (over $500,000). There are two ways to figure the excess, and a corporation may choose either: 1) Any profits over 8% on invested capital. (Such capital may include all equity capital, but only half the debt.) 2) Any profits over 95% of the average profits...
Under either method, the first $5,000 of excess profits is taxexempt. Small corporations may carry over unused portions of their excess-profits credit from year to year, but large ones (earning over $25,000) may not. Partly exempt are the profits of mining companies, airlines. Scattered through the bill is many another exemption, qualification, abstruse gimmick. Finally, cases of "abnormalities" may be adjudicated by the Treasury's Commissioner of Internal Revenue. Since such "abnormalities" are not defined, the Wall Street Journal foresaw that corporations would pay the tax only under protest. Under such a bill, "abnormalities" will...
...second revenue act of 1940 imposes levies ranging from 25 to 50 percent on excess profits and authorized five-year amortization of new plant facilities constructed for defense material production...