Revenue Act of 1940

The Revenue Act of 1940 temporarily and permanently increased individual income tax rates, temporarily and permanently increased corporate tax rates (top rate rose from 19% to 33%), and temporarily increased most excise tax rates to 30-50%.

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

Tax on corporations

Normal tax

A Normal Tax was levied on the net income of corporations as shown in the following table.

Revenue Act of 1940 Tax on Corporations 53 Stat. 863 ^[1]
Net Income (dollars)	Rate (percent)
0	19
25,000	33

Tax on individuals

A normal tax and a surtax were levied against the net income of individuals as shown in the following table.

Revenue Act of 1940 Normal Tax and Surtax on Individuals 53 Stat. 5 ^[2]
Net Income (dollars)	Normal Rate (percent)	Surtax Rate (percent)	Combined Rate (percent)
0	4	0	4
4,000	4	4	8
6,000	4	6	10
8,000	4	8	12
10,000	4	10	14
12,000	4	12	16
14,000	4	15	19
16,000	4	18	22
18,000	4	21	25
20,000	4	24	28
22,000	4	27	31
26,000	4	30	34
32,000	4	33	37
38,000	4	36	40
44,000	4	40	44
50,000	4	44	48
60,000	4	47	51
70,000	4	50	54
80,000	4	53	57
90,000	4	56	60
100,000	4	58	62
150,000	4	60	64
200,000	4	62	66
250,000	4	64	68
300,000	4	66	70
400,000	4	68	72
500,000	4	70	74
750,000	4	72	76
1,000,000	4	73	77
2,000,000	4	74	78
5,000,000	4	75	79

Exemption of $800 for single filers and $2,000 for married couples and heads of family. A $400 exemption for each dependent under 18.

References

Tax Acts of the United States

Internal Revenue	1861 1862 1864 1913 1916 1917 1918 1921 1924 1926 1928 1932 1934 1935 1936 1940 1940 (2nd) 1941 1942 1943 1943 1944 1945 1948 1950 1950 1951 1954 1954 Code 1962 1964 1968 1969 1971 1975 1976 1977 1978 1981 1982 Gas Tax 1984 COBRA 1986 1986 Code 1990 1993 1996 1997 1998 2001 2002 2003 2004 2005 2006 2008 Crisis 2009 2010 2012

Tariffs	1789: Hamilton I 1790: Hamilton II 1792: Hamilton III 1816: Dallas 1824: Sectional 1828: "Abominations" 1832 1833: Compromise 1842: Black 1846: Walker 1857 1861: Morrill 1872 1875 1883: Mongrel 1890: McKinley 1894: Wilson–Gorman 1897: Dingley 1909: Payne–Aldrich 1913: Underwood 1921: Emergency 1922: Fordney–McCumber 1930: Smoot–Hawley 1934: Reciprocal 1948: GATT 1962 1974/75 1979 1984 1988 1988: Canada FT 1993: NAFTA 1994: WTO 2002: Steel

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