The United States Revenue Act of 1942, Pub. L. 753, Ch. 619, 56 Stat. 798 (Oct. 21, 1942), increased individual income tax rates, increased corporate tax rates (top rate rose from 31% to 40%), and reduced the personal exemption amount from $1,500 to $1,200 (married couples). The exemption amount for each dependent was reduced from $400 to $350.
A 5% Victory tax on all individual incomes over $624 was created, with postwar credit.
The 35-60% graduated rate schedule for excess profits tax was replaced with a flat 90% rate.
The Act also created deductions for medical expenses.[1]