Pub. L. 86-28, pt. II, sec. 201

Sec. 201. (a) Section 3201 of the Railroad Retirement Tax Act is amended to read as follows: “SEC. 3201. RATE OF TAX. “In addition to other taxes, there is hereby imposed on the income of every employee a tax equal to— “(1) 6 ¾ percent of so much of the compensation paid to such employee for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and “(2) 7 ¾ percent of so much of the compensation paid to such employee for services rendered by him after December 31, 1961, as is not in excess of $400 for any calendar month: Provided, That 73 Stat. 29 the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956.” (b) Section 3202(a) of the Railroad Retirement Tax Act is amended (1) by striking out “after December 31, 1954” wherever it appears and inserting in lieu thereof “after the month in which this provision was amended in 1959”; (2) by striking out “$350” wherever it appears and inserting in lieu thereof “$400”; (3) by striking out “after 1954” and inserting in lieu thereof “after the month in which this provision was amended in 1959”. (c) Section 3211 of the Railroad Retirement Tax Act is amended to read as follows: “SEC. 3211. RATE OF TAX. “In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to— “(1) 13 ½ percent of so much of the compensation paid to such employee representative for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and “(2) 14 ½ percent of so much of the compensation paid to such employee representative for services rendered by him after December 31, 1961, as is not in excess of $400 for any calendar month: Provided, That the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to twice the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956.” (d) (1) Section 3221 of the Railroad Retirement Tax Act is amended by striking out “In addition to” and all that follows down through “$350” the first time it appears, and inserting in lieu thereof the following: “(a) 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— “(1) 6 ¾ percent of so much of the compensation paid by such employer for services rendered to him after the month in which this provision was amended in 1959, and before January 1, 1962, and “(2) 7 ¾ percent of so much of the compensation paid by such employer for services rendered to him after December 31, 1961, as is, with respect to any employee for any calendar month, not in excess of $400”. (2) Such section 3221 is further amended (A) by striking out “after December 31, 1954” and “after 1954” wherever they appear in that section and inserting in lieu thereof “after the month in which this provision was amended in 1959”; (B) by striking out “$350” wherever 73 Stat. 30 else it appears in that section and inserting in lieu thereof “$400”.; and (C) by adding at the end thereof the following new subsection: “(b) The rate of tax imposed by subsection (a) shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3111 at such time exceeds the rate provided by paragraph (2) of such section 3111 as amended by the Social Security Amendments of 1956.”