Sorry I haven't been around much lately guys. Things have been depressingly challenging here for a few weeks.
@Axeman has been trying to check in on us & I've been too stressed to even answer. (I'll call soon, my friend.) I'm just struggling to keep above water right now.
Taxes
My input below s going mostly off memory. Please feel free to correct any errors.
I'll start with 1942, since it actually was an income tax. I'll talk about the 1774 stuff in another post.
The Revenue Act of 1942 (Oct. 21, 1942), increased individual income tax rates, increased corporate tax rates (top rate rose from 31% to 40%), & reduced the personal exemption amount from $1,500 to $1,200 (married couples). The exemption amount for each dependent was reduced from $400 to $350.
A normal tax (6%) & a surtax were levied against the net income of individuals. Grabbed the following table of individual rates off the interwebs:
Revenue Act of 1942 Normal Tax and Surtax on Individuals | | | |
Net Income (dollars) | Normal Rate (%) | Surtax Rate (%) | Combined Rate (%) |
0 | 6 | 13 | 19 |
2,000 | 6 | 16 | 22 |
4,000 | 6 | 20 | 26 |
6,000 | 6 | 24 | 30 |
8,000 | 6 | 28 | 34 |
10,000 | 6 | 32 | 38 |
12,000 | 6 | 36 | 42 |
14,000 | 6 | 40 | 46 |
16,000 | 6 | 43 | 49 |
18,000 | 6 | 46 | 52 |
20,000 | 6 | 49 | 55 |
22,000 | 6 | 52 | 58 |
26,000 | 6 | 55 | 61 |
32,000 | 6 | 58 | 64 |
38,000 | 6 | 61 | 67 |
44,000 | 6 | 63 | 69 |
50,000 | 6 | 66 | 72 |
60,000 | 6 | 69 | 75 |
70,000 | 6 | 72 | 79 |
80,000 | 6 | 75 | 82 |
90,000 | 6 | 77 | 84 |
100,000 | 6 | 79 | 85 |
150,000 | 6 | 81 | 87 |
200,000 | 6 | 82 | 88 |
A 5% Victory tax on all individual incomes over $624 was also created, with postwar credit.
A normal tax was levied on the net income of corporations as shown in the following table:
Revenue Act of 1942 Normal Tax on Corporations | |
Net Income (dollars) | Rate (percent) |
0 | 24 |
25,000 | 31 |
A surtax was levied on the corporation surtax net income (net income less allowances &exemptions) of corporations as shown in the following table:
Revenue Act of 1942 Surtax on Corporations | |
Corporation Surtax Net Income (dollars) | Rate (percent) |
0 | 10 |
25,000 | 22 |
50,000 | 16 |
In addition, the 35-60% graduated rate schedule for "excess profits" tax was replaced with a flat 90% rate.