Excess Profits Tax
/ˈɛksɛs ˈprɒfɪts tæks/
Definitions
- (n.) A tax imposed on business profits exceeding a specified normative level, often levied during wartime or economic crises to prevent excessive earnings.
The government enacted an excess profits tax to curb profiteering during the conflict.
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Commentary
Excess profits tax is typically temporary and used as a regulatory measure to capture unusually high business gains during extraordinary periods.
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