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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