Second Revenue Act of 1940

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%).

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."