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excess profits tax

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excess-profits tax

[ek-ses prof-its]
–noun
a tax on the profits of a business enterprise in excess of the average profits for a number of base years, or of a specified rate of return on capital.

Origin:
1910–15
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Financial Dictionary

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.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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