Economy, World War II - Research Article from Americans at War

This encyclopedia article consists of approximately 5 pages of information about Economy, World War II.
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Finance

World War II cost the United States over $130 billion, and wartime finance soon proved to be an issue where the federal government excelled. For the most part, Washington financed this war, as it had World War I, through massive borrowing. In all, seven war bond campaigns raised some $135 billion. It also financed the war by transforming the tax code with the Revenue Act of 1942. Reflecting the progressive tax laws of World War I, this act raised the corporate, estate, excess profits, and gift taxes. It simultaneously revolutionized the tax code by tripling the number of wage earners paying federal income tax. By extending the income tax to millions of low to moderate wage earners, the 1942 legislation added 37 million Americans to the federal tax roles. War bonds and taxation also worked—in conjunction with the Anti-Inflation Act of 1942, which allowed the president to freeze wages...

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This section contains 1,251 words
(approx. 5 pages at 300 words per page)
Buy the Economy, World War II Encyclopedia Article
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Americans at War
Economy, World War II from Americans at War. Copyright © 2001-2006 by Macmillan Reference USA, an imprint of the Gale Group. All rights reserved.
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