Revenue Act of 1936 - Wikipedia

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.).

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.

49 Stat. 1655

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.

49 Stat. 1655

Tax on individuals

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

49 Stat. 1653

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 .

1 2 3 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

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