74 TH C ONGRESS . SESS . II. CH. 690 . JUN E 22, 1936 .
1655 $286,000 upon surtax net incomes of $500,000 ; and upon surtax net i ncomes in exces s of $500,000 and not in excess of $750,000, 70 per centum in addition of such excess. $461,000 upon surtax net incomes of $750,000 ; and upon surtax net incomes in excess of $750,000 and not in excess of $1,000,000, 72 per centum in addition of such excess . $641,000 upon surtax net incomes of $1,000,000 ; and upon sur- tax net incomes in excess of $1,000,000 and not in exce ss of $2,000,000, 73 per centum in addition to 1 such excess. $1,371,000 upon surtax net incomes of $2,000,000 ; and upon sur- tax net incomes in excess of $2,000,000 a nd not in excess of $5,000,000, 74 per centum in addition of such excess. $3,591,000 upon s urtax net incom es of $5,000,000 ; and upon surtax net incomes in excess of $5,000,000, 75 per centum in addi- tion of such excess . (c) TAX ON PERSON AL HOLDIN G COMPANIES .-For surtax on per- sonal holding companies, see section 351 . (d) AVOIDANCE OF SURTAXES BY INCORPORATION.-For surtax on corporations which accumulate surplus to avoid surtax on stock- holders, see section 102. SEC. 13. NORMAL TAX ON CORPORATIONS. (a) DEFINITION .-As used in this title the term "normal-tax income" means the net income minus the sum of- (1) INTEREST ON OBLIGATIONS OF THE UN ITED STA TES AND INSTRUMENTALITIES .-The credit provided in section 26 (a) . (2) DIVIDENDS RECEIVED .-The credit provided in section 26 (b) . Such credit shall not be allowed in the case of a mutual investment company, as defined in section 48 . (3) DIVIDENDS PAID .-In the case of a mutual investment com- pany the credit provided in section 27, computed without the bene- fit of sub sect ion (b) thereof (relating to dividend carry-over) . (b) IMPOSITION OF TAX .-There s hall. b e levied, collected, and paid for each taxable year upon the normal-tax net income of every corpo- ration, a normal tax as follows Upon normal-tax net incomes not in excess of $2,000, 8 per centum. $160 upon normal-tax net incomes of $2,000 ; and upon normal-tax net incomes in excess of $2,000 and not in excess of $15,000, 11 per centum in addition of such excess . $1,590 upon normal-tax net incomes of $15,000 ; and upon norm al- tax net incomes in excess of $15,000 and not in excess of $40,000, 13 per centum in addition of such excess. $4,840 upon normal-tax net incomes of $40,000 ; and upon norm al- tax net incomes in excess of $40,000, 15 per centum in addition of such excess .
Exempt (c) EXEMPT CO RP ORA TI ON S .-For corporations exempt from taxa- tions . tion under this title, see section 101 .
Pest, p. 1673 . (d) BANKS AND TRUST COMPANIES.-For rate banks and trust companies, see section 104 . SEC. 14. SURTAX ON UNDI STRIB UTED PROF ITS . (a) DEFINITIONS .-As used in this title- (1) The term "a djusted net inc ome" mea ns the net inco me minu s the sum of- (A) The normal tax imposed by section 13 . (B) The credit provided in section 26 (a), relating to interest on certain obligations of the United States and Government corporations . 1 So in original . of tax on cer tain Surtax on individu- als-Continued . Rates-Continued . Personal com panies . Post, p. 1732. Evasion by corpora- tions . Post, p. 16 76. holding Normal tax on corpo- rations . net Definition . Interest on U. S. ob- ITS legations, etc . Post, p. 1664 . Dividends received . Post, pp. 1664, 1669. Dividends paid . Post, p . 1665. Imposition of tax. Rates . Banks and trust com- panies. Post, p. 1677. Surtax on undistrib . uted profits. Def init ions . "Adjusted net in. come ." Normal tax . Credit allowed. Post, p.1664. corpora-
