Revenue Act of 1936
The Revenue Act of 1936, 49 Stat. 1648 (June 22, 1936), established an "undistributed profits tax" on corporations in the United States .
It was signed into law by President Franklin D. Roosevelt.
The act was applicable to incomes for 1936 and thereafter. Roosevelt sought additional permanent revenue of $620,000,000 and temporary revenue of $517,000,000. To secure the permanent revenue he suggested the substitution of a tax on undistributed earnings of corporations. Individual rates were raised only on the very rich (that is, income over $5 million a year.). [1]
See also
- Revenue Act of 1935, which raised taxes on high incomes
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 1936 Tax on Corporations | |||
Net Income (dollars) | Rate (percent) | ||
0 | 8 | ||
2,000 | 11 | ||
15,000 | 13 | ||
40,000 | 15 |
Surtax on undistributed profits
A Surtax was levied on corporations on "undistributed profits", i.e. profits not paid out in dividends, as shown in the following table.
Revenue Act of 1936 Surtax on Undistributed Profits | |||
Application (percent of undistributed net income) | Surtax Rate (percent) | ||
up to 10 | 7 | ||
from 10 to 20 | 12 | ||
from 20 to 40 | 17 | ||
from 40 to 60 | 22 | ||
over 60 | 27 |
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 1936 Normal Tax and Surtax on Individuals | |||
Net Income (dollars) | Normal Rate (percent) | Surtax Rate (percent) | Combined Rate (percent) |
0 | 4 | 0 | 4 |
4,000 | 4 | 4 | 8 |
6,000 | 4 | 5 | 9 |
8,000 | 4 | 6 | 10 |
10,000 | 4 | 7 | 11 |
12,000 | 4 | 8 | 12 |
14,000 | 4 | 9 | 13 |
16,000 | 4 | 11 | 15 |
18,000 | 4 | 13 | 17 |
20,000 | 4 | 15 | 19 |
22,000 | 4 | 17 | 21 |
26,000 | 4 | 19 | 23 |
32,000 | 4 | 21 | 25 |
38,000 | 4 | 24 | 28 |
44,000 | 4 | 27 | 31 |
50,000 | 4 | 31 | 35 |
56,000 | 4 | 35 | 39 |
58,000 | 4 | 35 | 39 |
62,000 | 4 | 39 | 43 |
68,000 | 4 | 43 | 47 |
74,000 | 4 | 47 | 51 |
80,000 | 4 | 51 | 55 |
90,000 | 4 | 55 | 59 |
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 $1,000 for single filers and $2,500 for married couples and heads of family. A $400 exemption for each dependent under 18.
See also
- Revenue Act of 1935, which raised taxes on high incomes
References
- ^ Roy G. Blakey, and Gladys C. Blakey. "The Revenue Act of 1936." American Economic Review (1936): 466-482 online.
- ^ a b c Facsimile from Statutes at Large
Further reading
- Paul, Randolph E. "The Background of the Revenue Act of 1937." U. Chicago Law Review . 5 (1937): 41+ online
- v
- t
- e
Revenue
- 1861
- 1862
- 1864
- 1894
- 1909
- 1913
- 1914
- 1916
- 1917
- 1918
- 1921
- 1924
- 1926
- 1928
- 1932
- 1934
- 1935
- 1936
- 1937
- 1939 Code
- 1940
- 1940 (2nd)
- 1941
- 1942
- 1943
- 1943
- 1944
- 1945
- 1948
- 1950
- 1950
- 1951
- 1954
- 1954 Code
- 1962
- 1964
- 1966
- 1968
- 1969
- 1971
- 1975
- 1976
- 1977
- 1978
- 1980
- 1981
- 1982
- Gas Tax
- 1983 (PL 98-67)
- 1983 (PL 98-76)
- 1984
- COBRA
- 1986
- 1986 Code
- 1987
- 1988
- 1990
- 1993
- 1996
- 1997
- 1998
- 2001 (EGTRRA)
- 2002
- 2003
- 2004
- 2005
- 2006
- 2006
- 2007
- 2007 (Mortgage)
- 2008
- Crisis
- 2009
- 2010 (ACA)
- 2010 (PL 111–240)
- 2010 (PL 111-312)
- 2011
- 2012 (ATRA)
- 2012
- 2014
- 2015 (BBA)
- 2016
- 2017 (TCJA)
- 2018 (BBA)
- 2018 (Appropriations)
- 2019 (SECURE)
- 2020 (Families First)
- 2020 (CARES)
- 2020 (Appropriations)
- 2021 (Defense Authorization)
- 2021 (American Rescue Plan)
- 2021 (Infrastructure, PL 117–58)
- 1789: Hamilton I
- 1790: Hamilton II
- 1791: Hamilton III
- 1792: Hamilton IV
- 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
- 2018/2019: Trump
This United States federal legislation article is a stub. You can help Wikipedia by expanding it. |
- v
- t
- e