changes in tax rates

changes in tax rates Sec. 301. (a) Section 3201 of the Internal Revenue Code of 1954 (relating to rate of tax on employees under the Railroad Retirement Tax Act) is amended by striking out “6¾ percent” from subdivision “(3)” and inserting in lieu thereof “7 percent”; by striking out “7 percent” from subdivision “(4)” and inserting in lieu thereof “7¼ percent”; and by striking out “7¼ percent” from subdivision “(5)’ and inserting in lieu thereof “7½ percent”. (b) Section 3211 of such Code (relating to rate of tax on employee representatives under the Railroad Retirement Tax Act) is amended by striking out “13½ percent” from subdivision “(3)” and inserting in lieu thereof “14 percent”; by striking out “14 percent” from subdivision “(4)” and inserting in lieu thereof “14½ percent”; and by striking out “14¼ percent” from subdivision “(5)” and inserting in lieu thereof “15 percent”. (c) Section 3221(a) of such Code (relating to rate of tax on employers under the Railroad Retirement Tax Act) is amended by striking out “6¾ percent” from subdivision “(3)” and inserting in lieu thereof “7 percent”; by striking out “7 percent” from subdivision “(4)” and inserting in lieu thereof “7¼ percent”; and by striking out “7¼ percent” from subdivision “(5)” and inserting in lieu thereof “7½ percent”. supplemental taxes (d) Section 3211 of such Code is further amended by inserting “(a)” after “Sec. 3211” and by adding at the end thereof the following new subsection: “(b) In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to 2 cents for each man-hour for which compensation is paid to him for services rendered as an employee representative.” (e) Section 3221 of such Code is further amended by adding at the end thereof the following new subsection: “(c) 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 2 cents for each man-hour, for which compensation is paid. With respect to daily, weekly, or monthly rates of compensation such tax shall apply to the number of hours comprehended in the rate together with the number of overtime hours for which compensation in addition to the daily, weekly, or monthly rate is paid. With respect to compensation paid on a mileage or piecework basis such tax shall apply to the number of hours constituting the hourly equivalent of the compensation paid. “Each employer of employees whose supplemental annuities are reduced pursuant to section 3(j) (2) of the Railroad Retirement Act of 1937 shall be allowed as a credit against the tax imposed by this subsection an amount equivalent in each month to the aggregate amount of reductions in supplemental annuities accruing in such month to employees of such employer. If the credit so allowed to such an employer for any month exceeds the tax liability of such employer accru-80 Stat. 1079ing under this subsection in such month, the excess may be carried forward for credit against such taxes accruing in subsequent months but the total credit allowed by this paragraph to an employer shall not exceed the total of the taxes on such employer imposed by this subsection. At the end of each calendar quarter the Railroad Retirement Board shall certify to the Secretary of the Treasury with respect to each such employer the amount of credit accruing to such employer under this paragraph during such quarter and shall notify such employer as to the amount so certified.” (f) The amendments made by subsections (d) and (e) of this section shall be effective with respect to man-hours, for sixty months beginning with the first month following enactment of this Act, for which compensation is paid.