TIER 1 RAILROAD RETIREMENT TAX RATES EXPLICITLY DETERMINED BY REFERENCE TO SOCIAL SECURITY TAXES.

SEC. 5125. TIER 1 RAILROAD RETIREMENT TAX RATES EXPLICITLY DETERMINED BY REFERENCE TO SOCIAL SECURITY TAXES. (a) Tax on Employees.—Subsection (a) of section 3201 of the Internal Revenue Code of 1986 (relating to rate of tax) is amended— (1) by striking “following” and inserting “applicable”, and (2) by striking “employee:” and all that follows and inserting “employee. For purposes of the preceding sentence, the term ‘applicable percentage’ means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3101 for the calendar year.” (b) Tax on Employee Representatives.—Paragraph (1) of section 3211(a) of such Code (relating to rate of tax) is amended— (1) by striking “following” and inserting “applicable”, and (2) by striking “representative:” and all that follows and inserting “representative. For purposes of the preceding sentence, the term ‘applicable percentage’ means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3101 and subsections (a) and (b) of section 3111 for the calendar year.” 104 STAT. 1388–286 (c) Tax on Employers.—Subsection (a) of section 3221 of such Code (relating to rate of tax) is amended— (1) by striking “following” and inserting “applicable”, and (2) by striking “employer:” and all that follows and inserting “employer. For purposes of the preceding sentence, the term ‘applicable percentage’ means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3111 for the calendar year.”