at 1905 (characterizing British excess profits tax
as income tax under U.S.
In effect, the tax is equal to 51.71% of the total profits that exceed 44.47% of the flotation value, which meets the general understanding of an excess profits tax
(that is, a tax on profits above the deemed normal level of return; here a normal return equals 44.47% of the flotation value).
Under IRC sections 901(a) and (b)(1), a domestic corporation may offset its federal income tax liability using a foreign tax credit in "the amount of any income, war profits, and excess profits taxes
paid or accrued during the taxable year to any foreign country." Treasury Regulations section 1.901-2(a) provides that a foreign levy is an income tax if (and only if) it is a tax and its predominant character is that of an income tax in the United States.
 An excess profits tax
was also in effect from July 1950 through
An excess profits tax
would act as a charge on bank cashflow - thought to be a way to raise significant amounts without distorting the financial system.
Newspaper reports said an excess profits tax
would effectively act as a charge on bank cashflow - thought to be a way to raise significant amounts from banks without distorting the financial system.
The excess profits tax
and the wartime hikes in corporate income tax rates were considered serious threats to the economy's postwar recovery.
A licence fee or excess profits tax
also had disadvantages, the commission acknowledged.
The Coalition also supports the idea, as set out in the Alternative Federal Budget, that the government's current surtax on financial institutions be increased and established as excess profits tax
. Such an increase was also recommended by the Mintz Committee on Corporate Taxation and would increase the surtax amount collected from the current $65 million to between $350 million and $500 million annually.
A large range of taxes applies to royalty/tax agreements, of which the most important are income tax at 30%, and an excess profits tax
levied at a rate agreed in individual contracts, based on the project's real rate of return.
Some 300 years later -- after France's fall to Nazi Germany but before Pearl Harbor -- Franklin Roosevelt was unable to persuade Congress to enact legislation stipulating that "no corporation be allowed to escape excess profits tax
liability on any profits that exceeded 10 percent of invested capital." Vivid memories of profiteering during World War I notwithstanding, his defeat came at the hands of Southern conservatives in the House and Senate who chose to protect the high prewar profits of the tobacco industry and Coca-Cola.
Wartime innovations such as the excess profits tax
and specialized forms of cost accounting gave rise to an important specialist practice in taxation.