excess-profits tax

[ek-ses prof-its]

noun

1. 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.

Word History and Origins

Origin of excess-profits tax¹

First recorded in 1910–15

Example Sentences

The Economic Policy Institute recommends a temporary excess-profits tax.

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“Democrats on Capitol Hill are dusting off Jimmy Carter’s playbook and calling for an ‘excess-profits tax’ on energy companies as well as price controls on gasoline and diesel.

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Five weeks ago, the N.D.P. demanded an excess-profits tax on the windfalls of "corporate welfare bums" �New Democrat Leader David Lewis' favorite term for big corporations.

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In the U.S., the oil companies have come in for heavy criticism from Congress, which resounds with cries to roll back surging oil and gasoline prices, repeal special tax benefits that the oil companies get and slap on an excess-profits tax.

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But why, asked Fulbright, did G.M. not cut its prices when the excess-profits tax expired?

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