changes in tax schedules

changes in tax schedules Sec. 109. (a) (1) Section 1401(a) of the Internal Revenue Code of 1954 (relating to rate of tax on self-employment income for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (1), (2), (3), and (4) and inserting in lieu thereof the following: “(1) in the case of any taxable year beginning after December 31, 1967, and before January 1, 1969, 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, 1968, and before January 1, 1971, the tax shall be equal to 6.3 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, 1970, and before January 1, 1973, the tax shall be equal to 81 Stat. 8366.9 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.” (2) Section 3101(a) of such Code (relating to rate of tax on employees for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (1), (2), (3), and (4) and inserting in lieu thereof the following: “(1) with respect to wages received during the calendar year 1968, the rate shall be 3.8 percent; “(2) with respect to wages received during the calendar years 1969 and 1970, the rate shall be 4.2 percent; “(3) with respect to wages received during the calendar years 1971 and 1972, the rate shall be 4.6 percent; and “(4) with respect to wages received after December 31, 1972, the rate shall be 5.0 percent.” (3) Section 3111(a) of such Code (relating to rate of tax on employers for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (1), (2), (3), and (4) and inserting in lieu thereof the following: “(1) with respect to wages paid during the calendar year 1968, the rate shall be 3.8 percent; “(2) with respect to wages paid during the calendar years 1969 and 1970, the rate shall be 4.2 percent; “(3) with respect to wages paid during the calendar years 1971 and 1972, the rate shall be 4.6 percent; and “(4) with respect to wages paid after December 31, 1972, the rate shall be 5.0 percent.” (b) (1) Section 1401(b) of such Code (relating to rate of tax on self-employment income for purposes of hospital insurance) is amended by striking out paragraphs (1) through (6) and inserting in lieu thereof the following: “(1) in the case of any taxable year beginning after December 31, 1967, and before January 1, 1973, the tax shall be equal to 0.60 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, 1972, and before January 1, 1976, the tax shall be equal to 0.65 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, 1975, and before January 1, 1980, the tax shall be equal to 0.70 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, 1979, and before January 1, 1987, the tax shall be equal to 0.80 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, 1986, the tax shall be equal to 0.90 percent of the amount of the self-employment income for such taxable year.” (2) Section 3101(b) of such Code (relating to rate of tax on employees for purposes of hospital insurance) is amended by striking out paragraphs (1) through (6) and inserting in lieu thereof the following: “(1) with respect to wages received during the calendar years 1968, 1969, 1970, 1971, and 1972, the rate shall be 0.60 percent; 81 Stat. 837 “(2) with respect to wages received during the calendar years 1973, 1974, and 1975, the rate shall be 0.65 percent; “(3) with respect to wages received during the calendar years 1976, 1977, 1978, and 1979, the rate shall be 0.70 percent; “(4) with respect to wages received during the calendar years 1980, 1981, 1982, 1983, 1984, 1985, and 1986, the rate shall be 0.80 percent; and “(5) with respect to wages received after December 31, 1986, the rate shall be 0.90 percent.” (3) Section 3111(b) of such Code (relating to rate of tax on employers for purposes of hospital insurance) is amended by striking out paragraphs (1) through (6) and inserting in lieu thereof the following: “(1) with respect to wages paid during the calendar years 1968, 1969, 1970, 1971, and 1972, the rate shall be 0.60 percent; “(2) with respect to wages paid during the calendar years 1973, 1974, and 1975, the rate shall be 0.65 percent; “(3) with respect to wages paid during the calendar years 1976, 1977, 1978, and 1979, the rate shall be 0.70 percent; “(4) with respect to wages paid during the calendar years 1980, 1981, 1982, 1983, 1984, 1985, and 1986, the rate shall be 0.80 percent; and “(5) with respect to wages paid after December 31, 1986, the rate shall be 0.90 percent.” (c) The amendments made by subsections (a)(1) and (b)(1) shall apply only with respect to taxable years beginning after December 31, 1967. The remaining amendments made by this section shall apply only with respect to remuneration paid after December 31, 1967.