excess profits tax

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Excess profits tax

Additional federal taxes placed on the earnings of a business, used only in time of national emergency such as war.

Excess Profits Tax

A tax imposed on a company's profits over a certain amount. Excess profit taxes are imposed in order to generate more revenue for the government, especially during national emergencies. In the United States, excess profit taxes have been implemented during wartime. There are also periodic debates on whether to impose an excess profit tax on private industries thought to be necessary for consumers in order to discourage profiteering or price gouging. Particularly, oil and gas companies have been targeted for this form of the excess profit tax. See also: Windfall Tax.

excess profits tax

A temporary tax levied on business profits during a period of national emergency. For example, the federal government may levy an additional corporate income tax during wartime to generate extra government revenues.
References in periodicals archive ?
at a rate of 30%, and excess profit tax takes effect after the field
A provision has been made for expected excess profit tax for the 2004
in the calculation of the excess profit tax liability in the
Turgai, is subject to excess profit tax under the terms of the
incur excess profit tax in any of its other fields in 2004.
however be subject to excess profit tax for the year ended
RBC Daily reported this morning that in order to address this issue, the government is considering the introduction of an excess profit tax for the oil industry.
While we do not expect an excess profit tax to be widely introduced in the next twot othree years, that the government is even considering this approach is positive, in our view.
An excess profit tax should be introduced and the Mineral Extraction Tax abolished at the same time from 1 Jan 2012.
Equally, according to statement made by Deputy Prime Minister Igor Sechin in May, the government is to introduce its proposals on an excess profit tax to Vladimir Putin by the end of 2010.
In simple terms, the Norwegian tax rate for oil companies is 78%, which is comprised of a profit tax of 28% and an excess profit tax of 50%.
Governor Rendell favors passing an oil company excess profit tax, but he said he will consider other proposals to generate the funds necessary to ensure a safe and efficient transportation infrastructure that will serve future generations.