A 5% Victory tax on all individual incomes over $624 was created, with postwar credit.
That provision, effective retroactively for tax years that began after December 31, 1938, allowed a deduction, for U.S. federal income tax purposes, for expenses incurred in investment activities (activities for the production of income), even if such activities are not conducted in connection with a trade or business.
A normal tax was levied on the net income of corporations as shown in the following table: 56 Stat.
806 [4] A normal tax and a surtax were levied against the net income of individuals as shown in the following table: 56 Stat.
802 [5] There was an exemption of $500 for single filers, $1,200 for married couples and heads of family, and $350 for each dependent under 18.