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Excess profits tax

The financial definition for Excess profits tax:

Additional federal taxes placed on the earnings of a business, used only in time of national emergency such as war.




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Accumulated profits tax

Accumulated profits tax
A tax on earnings kept in a firm to prevent the higher personal income tax rate that would obtain if profits were paid out as dividends to the owners.


Pretax earnings or profits

Pretax earnings or profits
Net income before federal income taxes are subtracted.




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