excess-profits tax

[ek-ses prof-its]

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. 2012.
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Excess-profits tax is always a great word to know.
So is bezoar. Does it mean:
a calculus or concretion found in the stomach or intestines of certain animals, esp. ruminants, formerly reputed to be an effective remedy for poison.
an arrangement of five objects, as trees, in a square or rectangle, one at each corner and one in the middle.
Encyclopedia Britannica
Encyclopedia

excess-profits tax

a tax levied on profits in excess of a stipulated standard of "normal" income. There are two principles governing the determination of excess profits. One, known as the war-profits principle, is designed to recapture wartime increases in income over normal peacetime profits of the taxpayer. The other, identified as the high-profits principle, is based on income in excess of some statutory rate of return on invested capital

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Encyclopedia Britannica, 2008. Encyclopedia Britannica Online.
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