Surtax
Encyclopedia
A surtax may be a tax levied upon a tax, or a tax levied upon income.
at the rate of 6 old pence
in the pound
(2.5%) on incomes over 5000 per year) was renamed Sur-tax. By 1934, the rate was variable from 1 shilling
to 7 shillings and sixpence in the pound (5% to 37.5%).
include one imposed to help finance the Vietnam War
during the Lyndon B. Johnson
administration. It essentially consisted of calculating one's ordinary federal income tax
liability and then adding another 10% to it—the amount of the surtax.
As the U.S. income tax system at that time was highly progressive, the surtax was much higher on those with higher incomes, as a 10% surtax imposed on a tax rate of 20% would result in an overall rate of 22%, while the same surtax imposed on a rate of 50% would result in an overall rate of 55%.
Some anti-war protesters refused to pay this tax, stating that while they were not anarchists and understood the need for and positive role played by government
in many areas, they wanted none of their tax money going to a war that they felt was immoral. The surtax was repealed well before the war ended in Vietnam
.
Surtaxes can be imposed on other taxes. They are usually imposed on the grounds of moral justification; they only affect persons who are already paying taxes rather than extending taxation to new areas or persons who are not previously being taxed.
A surtax of 4.3 percent was recently proposed on incomes over $500,000 by Congress to alleviate the alterations to the Alternative Minimum Tax
code in the United States.
A surtax was proposed as part of the 2009-2010 health care reform in the United States
. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3wUXb42NPX0
United Kingdom
In 1929, Supertax (which had been introduced in the Finance Act 1909People's Budget
The 1909 People's Budget was a product of then British Prime Minister H. H. Asquith's Liberal government, introducing many unprecedented taxes on the wealthy and radical social welfare programmes to Britain's political life...
at the rate of 6 old pence
History of the British penny (1901-1970)
The penny of King Edward VII is of the same technical standards as the late Victorian issues. The head on the obverse is by George William de Saulles , facing right, with the inscription EDWARDVS VII DEI GRA BRITT OMN REX FID DEF IND IMP...
in the pound
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
(2.5%) on incomes over 5000 per year) was renamed Sur-tax. By 1934, the rate was variable from 1 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
to 7 shillings and sixpence in the pound (5% to 37.5%).
United States
Previous examples of a broadly-levied surtax in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
include one imposed to help finance the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
during the Lyndon B. Johnson
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...
administration. It essentially consisted of calculating one's ordinary federal income tax
Ordinary income
Under the United States Internal Revenue Code, the type of income is defined by its character. Ordinary income is usually characterized as income other than capital gain...
liability and then adding another 10% to it—the amount of the surtax.
As the U.S. income tax system at that time was highly progressive, the surtax was much higher on those with higher incomes, as a 10% surtax imposed on a tax rate of 20% would result in an overall rate of 22%, while the same surtax imposed on a rate of 50% would result in an overall rate of 55%.
Some anti-war protesters refused to pay this tax, stating that while they were not anarchists and understood the need for and positive role played by government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
in many areas, they wanted none of their tax money going to a war that they felt was immoral. The surtax was repealed well before the war ended in Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
.
Surtaxes can be imposed on other taxes. They are usually imposed on the grounds of moral justification; they only affect persons who are already paying taxes rather than extending taxation to new areas or persons who are not previously being taxed.
A surtax of 4.3 percent was recently proposed on incomes over $500,000 by Congress to alleviate the alterations to the Alternative Minimum Tax
Alternative Minimum Tax
The Alternative Minimum Tax is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts. AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold . This exemption is substantially higher than the...
code in the United States.
A surtax was proposed as part of the 2009-2010 health care reform in the United States
Health care reform in the United States
Health care reform in the United States has a long history, of which the most recent results were two federal statutes enacted in 2010: the Patient Protection and Affordable Care Act , signed March 23, 2010, and the Health Care and Education Reconciliation Act of 2010 , which amended the PPACA and...
. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3wUXb42NPX0