changes in tax schedules

changes in tax schedules Self-Employment Income Tax Sec. 401. (a) Section 1401 of the Internal Revenue Code of 1954 (relating to rate of tax on self-employment income) is amended to read as follows: “SEC. 1401. RATE OF TAX.“In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows: “(1) in the case of any taxable year beginning after December 31, 1958, and before January 1, 1960, the tax shall be equal to 3¾ percent of the amount of the self-employment income for such taxable year; “(2) in the case of any taxable year beginning after December 31, 1959, and before January 1, 1963, the tax shall be equal to 4½ percent of the amount of the self-employment income for such taxable year; “(3) in the case of any taxable year beginning after December 31, 1962, and before January 1, 1966, the tax shall be equal to 5¼ percent of the amount of the self-employment income for such taxable year; “(4) in the case of any taxable year beginning after December 31, 1965, and before January 1, 1969, the tax shall be equal to 6 percent of the amount of the self-employment income for such taxable year; and “(5) in the case of any taxable year beginning after December 31, 1968, the tax shall be equal to 6¾ percent of the amount of the self-employment income for such taxable year.” Tax on Employees (b) Section 3101 of such Code (relating to rate of tax on employees under the Federal Insurance Contributions Act) is amended to read as follows: “SEC. 3101. RATE OF TAX.“In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section 3121 (a)) received by him with respect to employment (as defined in section 3121 (b))— “(1) with respect to wages received during the calendar year 1959, the rate shall be 2½ percent; “(2) with respect to wages received during the calendar years 1960 to 1962, both inclusive, the rate shall be 3 percent; “(3) with respect to wages received during the calendar years 1963 to 1965, both inclusive, the rate shall be 3½ percent; 72 Stat. 1042 “(4) with respect to wages received during the calendar years 1966 to 1968, both inclusive, the rate shall be 4 percent; and “(5) with respect to wages received after December 31, 1968, the rate shall be 4½ percent.” Tax on Employers (c) Section 3111 of such Code (relating to rate of tax on employers under the Federal Insurance Contributions Act) is amended to read as follows: “SEC. 3111. RATE OF TAX.“In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section 3121 (a)) paid by him with respect to employment (as defined in section 3121 (b))— “(1) with respect to wages paid during the calendar year 1959, the rate shall be 2½ percent; “(2) with respect to wages paid during the calendar years 1960 to 1962, both inclusive, the rate shall be 3 percent; “(3) with respect to wages paid during the calendar years 1963 to 1965, both inclusive, the rate shall be 3½ percent; “(4) with respect to wages paid during the calendar years 1966 to 1968, both inclusive, the rate shall be 4 percent; and “(5) with respect to wages paid after December 31, 1968, the rate shall be 4½ percent.” Effective Dates (d) The amendment made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1958. The amendments made by subsections (b) and (c) shall apply with respect to remuneration paid after December 31, 1958.