The Revenue Act of 1941 permanently extended the temporary individual, corporate, and excise tax increases of 1940, increased the excess profits tax

Excess profits tax

In the United States, an excess profits tax is a tax, some say excise tax, on any profit above a certain amount. A predominantly wartime fiscal instrument, the tax was designed primarily to capture wartime profits that exceeded normal peacetime profits....

 by 10 percentage points (top rate rose from 50 to 60 percent) and increased corporate tax rates 6-7 percentage points (top rate increased from 24 percent to 31 percent).

Some excise taxes were temporarily increased (on alcohol, tires, etc.) and the personal exemption fell from $2,000 to $1,500 (for married couples).

Normal tax

A Normal Tax was levied on the net income

Net income

Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...

of corporations as shown in the following table.

Revenue Act of 1941 Normal Tax on Corporations
Net Income (dollars)	Rate (percent)
0	24
25,000	37

Surtax on Corporation

A Surtax was levied on the corporation surtax net income (i.e., net income less allowances and exemptions) of corporations as shown in the following table.

Revenue Act of 1941 Surtax on Corporations
Corporation Surtax Net Income (dollars)	Rate (percent)
0	6
25,000	7

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 1941 Normal Tax and Surtax on Individuals
Net Income (dollars)	Normal Rate (percent)	Surtax Rate (percent)	Combined Rate (percent)
0	4	6	10
2,000	4	9	13
4,000	4	13	17
6,000	4	17	21
8,000	4	21	25
10,000	4	25	29
12,000	4	29	31
14,000	4	32	36
16,000	4	35	39
18,000	4	38	42
20,000	4	41	45
22,000	4	44	48
26,000	4	47	51
32,000	4	50	54
38,000	4	53	57
44,000	4	55	59
50,000	4	57	61
60,000	4	59	63
70,000	4	61	65
80,000	4	63	67
90,000	4	64	68
100,000	4	65	69
150,000	4	66	70
200,000	4	67	71
250,000	4	69	73
300,000	4	71	75
400,000	4	72	76
500,000	4	73	77
750,000	4	74	78
1,000,000	4	75	79
2,000,000	4	76	80
5,000,000	4	77	81

• Exemption of $750 for single filers and $1,500 for married couples and heads of family. A $400 exemption for each dependent under 18.