Emergency Tax

Emergency Tax

 

a mandatory payment made to the state and exacted only under special circumstances, such as the advent of war.

Emergency taxes are levied either by imposing new taxes or by raising existing tax rates. They were widely used in Russia and Great Britain during World War I and in Great Britain, the USA, and Germany during World War II. In capitalist countries the working people pay the bulk of emergency taxes; the capitalists usually try to avoid such taxation. When the monopolies have to pay emergency taxes, the expenditure is recovered through a faster rate of depreciation or through overt or covert subsidies granted by the state—for example, military orders may be filled at higher prices. Thus, between 1945 and 1955, American monopolies were repaid $25.7 billion, which amounted to over half of the taxes they paid in World War II.

Emergency taxes have been used in the USSR as a way of attracting capital from the population to finance extraordinary state expenditures. In 1918, during the Civil War, a one-time emergency revolutionary tax was imposed on the well-off strata of the population, raising 10 billion rubles. A tax was collected from all citizens in 1922 to help famine victims, and a one-time tax was introduced in 1924 to counter the effects of a crop failure. A war increment imposed on income and agricultural taxes in 1941 was replaced in 1942 by a war tax, which was abolished in 1946.

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Withdrawals above the 25-percent tax-free amount are taxed at a person's marginal rate of income tax but in the majority of cases the pension provider does not have the correct tax code for the person and withdrawals are taxed using an emergency tax code.
The most common mistake is to put someone on an emergency tax code when they get a new job or change their job title.
Senate for disaster relief funding and emergency tax relief for Harvey victims.
TTB is waiving tax penalties to those affected by the fires, and the California state Board of Equalization is offering emergency tax relief and an extension of up to three months.
The SALT deduction has been in place since the commencement of the income tax in 1913 and has its roots in an 1862 emergency tax to fund the Union's Civil War efforts.
Beware, too, HM Revenue & Customs taking off even more tax than the amount they are due - down to the complex workings of the pay as you earn (PAYE) system which may put you on to an "emergency tax" basis.
Unite Scottish secretary Pat Rafferty said: "Emergency tax measures should be implemented as soon as possible.
Mr Bozman said: "She was on emergency tax and had rent issues."
You also need to be aware of being charged 'emergency tax' which can mean in the short term you pay more and have to claim it back.

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