changes in tax schedules

changes in tax schedules Sec. 321. (a) Section 1401 of the Internal Revenue Code of 1954 (relating to rate of tax under the Self-Employment Contributions Act) is amended to read as follows: “SEC. 1401. RATE OF TAX. “(a) Old-Age, Survivors, and Disability Insurance.— 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, 1965, and before January 1, 1967, the tax shall be equal to 5.8 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, 1966, and before January 1, 1969, the tax shall be equal to 5.9 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, 1968, and before January 1, 1973, the tax shall be equal to 6.6 percent of the amount of the self-employment income for such taxable year; and “(4) in the case of any taxable year beginning after December 31, 1972, the tax shall be equal to 7.0 percent of the amount of the self-employment income for such taxable year. “(b) Hospital Insurance.— In addition to the tax imposed by the preceding subsection, 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, 1965, and before January 1, 1967, the tax shall be equal to 0.35 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, 1966, and before January 1, 1973, the tax shall be equal to 0.50 percent of the amount of the self-employment income for such taxable year; 79 Stat. 395 “(3) in the case of any taxable year beginning after December 31, 1972, and before January 1, 1976, the tax snail be equal to 0.55 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, 1975, and before January 1, 1980, the tax shall be equal to 0.60 percent of the amount of the self-employment income for such taxable year; “(5) in the case of any taxable year beginning after December 31, 1979, and before January 1, 1987, the tax shall be equal to 0.70 percent of the amount of the self-employment income for such taxable year; and “(6) in the case of any taxable year beginning after December 31, 1986, the tax shall be equal to 0.80 percent of the amount of the self-employment income for such taxable year. For purposes of the tax imposed by this subsection, the exclusion of employee representatives by section 1402(c)(3) shall not apply.” (b) Section 3101 of the Internal Revenue Code of 1954 (relating to rate of tax on employees under the Federal Insurance Contributions Act) is amended to read as follows: “SEC. 3101. RATE OF TAX. “(a) Old-Age, Survivors, and Disability Insurance.— 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 1966, the rate shall be 3.85 percent; “(2) with respect to wages received during the calendar years 1967 and 1968, the rate shall be 3.9 percent; “(3) with respect to wages received during the calendar years 1969, 1970, 1971, and 1972, the rate shall be 4.4 percent; and “(4) with respect to wages received after December 31, 1972, the rate shall be 4.85 percent. “(b) Hospital Insurance.— In addition to the tax imposed by the preceding subsection, 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), but without regard to the provisions of paragraph (9) thereof insofar as it relates to employees)— “(1) with respect to wages received during the calendar year 1966, the rate shall be 0.35 percent; “(2) with respect to wages received during the calendar years 1967, 1968, 1969, 1970, 1971, and 1972, the rate shall be 0.50 percent; “(3) with respect to wages received during the calendar years 1973, 1974, and 1975, the rate shall be 0.55 percent; “(4) with respect to wages received during the calendar years 1976, 1977, 1978, and 1979, the rate shall be 0.60 percent; “(5) with respect to wages received during the calendar years 1980, 1981, 1982, 1983, 1984, 1985, and 1986, the rate shall be 0.70 percent; and “(6) with respect to wages received after December 31, 1986, the rate shall be 0,80 percent.” 79 Stat. 396 (c) Section 3111 of the Internal Revenue Code of 1954 (relating to rate of tax on employers under the Federal Insurance Contributions Act) is amended to read as follows: “SEC. 3111. RATE OF TAX. “(a) Old-Age, Survivors, and Disability Insurance.— 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 1966, the rate shall be 3.85 percent; “(2) with respect to wages paid during the calendar years 1967 and 1968, the rate shall be 3.9 percent; “(3) with respect to wages paid during the calendar years 1969, 1970, 1971, and 1972, the rate shall be 4.4 percent; and “(4) with respect to wages paid after December 31, 1972, the rate shall be 4.85 percent. “(b) Hospital Insurance.— In addition to the tax imposed by the preceding subsection, 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), but without regard to the provisions of paragraph (9) thereof insofar as it relates to employees)— “(1) with respect to wages paid during the calendar year 1966, the rate shall be 0.35 percent; “(2) with respect to wages paid during the calendar years 1967, 1968, 1969, 1970, 1971, and 1972, the rate shall be 0.50 percent; “(3) with respect to wages paid during the calendar years 1973, 1974, and 1975, the rate shall be 0.55 percent; “(4) with respect to wages paid during the calendar years 1976, 1977, 1978, and 1979, the rate shall be 0.60 percent; “(5) with respect to wages paid during the calendar years 1980, 1981, 1982, 1983, 1984, 1985, and 1986, the rate shall be 0.70 percent; “(6) with respect to wages paid after December 31, 1986, the rate shall be 0.80 percent.” (d) The amendments made by subsection (a) shall apply only with respect to taxable years beginning after December 31, 1965. The amendments made by subsections (b) and (c) shall apply only with respect to remuneration paid after December 31, 1965.