SIGNIFICANT DEVELOPMENTS IN THE LAW OF FEDERAL TAXATION, 1941-1947: II

Authors

Paul G. Kauper, University of Michigan Law SchoolFollow

Abstract

The 1941 Revenue Act carried forward the rather complex normal tax structure prescribed by the 1940 Revenue Act and in addition introduced a corporate surtax rate schedule. The normal tax rates were increased to absorb the 10% defense tax previously imposed as a separate tax and also a very slight increase in the rates applicable to corporations with a normal-tax net income of less than $38,461.54. As so altered the normal tax amounted to 24% in the case of corporations having normal-tax net income over $38,461.54, and in the case of corporations having no more than this amount of normal-tax net income the applicable rate was determined by use of a bracket system that ranged from 15% on the first $5,000 to 37% on the excess over $25,000. The new surtax imposed by the 1941 act was levied at the rate of 6% on the first $25,000 of surtax net income and 7% on the remainder.

Recommended Citation

Paul G. Kauper, SIGNIFICANT DEVELOPMENTS IN THE LAW OF FEDERAL TAXATION, 1941-1947: II, 45 Mich. L. Rev. 813 (1947).
Available at: https://repository.law.umich.edu/mlr/vol45/iss7/3