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excess profits tax

   Also found in: Acronyms, Encyclopedia, Wikipedia 0.01 sec.
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 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.


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An Excess Profits Tax was levied on companies benefiting from war production'.
Hicks uses the term "war profits" to describe a carefully targeted windfall profits tax (WPT), in contrast with a general tax on "high" profits whether or not they arise due to wartime spending--an excess profits tax (EPT).
person who pays income, war profits, or excess profits tax to a foreign country may credit the amount of such taxes against her U.
 
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