The Revenue Act of 1940 permanently increased individual

income tax rate Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...

s in the United States, permanently increased

corporate tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at ...

rates from 19% to 33% and temporarily increased most excise tax rates to 30-50%. The

personal exemption Under United States tax law, a personal exemption is an amount that a resident taxpayer is entitled to claim as a tax deduction against personal income in calculating taxable income and consequently federal income tax. In 2017, the personal exemp ...

fell from $2,500 to $2,000 (married couples).

Tax on corporations

Normal tax

A Normal Tax was levied on the

net income In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, a ...

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...

s as shown in the following table.

Tax on individuals

A normal tax and a surtax were levied against the net income of individuals as shown in the following table. *An exemption of $800 for single filers and $2,000 for married couples and heads of family was allowed, as was a $400 exemption for each

dependent A dependant is a person who relies on another as a primary source of income. A common-law spouse who is financially supported by their partner may also be included in this definition. In some jurisdictions, supporting a dependant may enabl ...

under 18.

References

{{US_tax_acts United States federal taxation legislation 1940 in American law 76th United States Congress United States federal legislation articles without infoboxes