IMPOSITION OF TAX SURCHARGE.

SEC. 102. IMPOSITION OF TAX SURCHARGE. (a) Imposition of Tax.— Subchapter A of chapter 1 (relating to determination of tax liability) is amended by inserting at the end thereof the following new part: 82 Stat. 252 “PART V— TAX SURCHARGE “Sec. 51. Tax surcharge. “SEC. 51. TAX SURCHARGE. “(a) Imposition of Tax.— “(1) Calendar teaks.— “(A) Individuals (other than estates and trusts),—In addition to the other taxes imposed by this chapter, there is hereby imposed on the income of every individual (other than an estate or trust) whose taxable year is the calendar year a tax as follows: calendar year 1968 Table 1.—Single person (other than head of household) and married person filing separate return If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $143 0 $275 $282 $20 $527 $540 $40 $148 155 $1 282 288 21 540 553 41 155 162 2 288 298 22 553 567 42 162 168 3 298 313 23 567 580 43 168 176 4 313 327 24 580 593 44 175 182 5 327 340 26 593 607 45 182 188 6 340 353 26 607 620 46 188 195 7 353 367 27 620 633 47 195 202 8 367 380 28 633 647 48 202 208 9 380 303 29 647 660 49 208 215 10 393 407 30 660 673 50 215 222 11 407 420 31 673 687 51 222 228 12 420 433 32 687 700 52 228 235 13 433 447 33 700 713 53 235 242 14 447 460 34 713 727 54 242 248 15 460 473 35 727 734 55 248 255 16 473 487 36 734 and over, 7.5% of the adjusted tax 255 262 17 487 500 37 262 268 18 500 513 38 268 275 19 513 527 39 Table 2.—Head of household If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $223 0 $350 $357 $20 $527 $540 $40 $223 230 $1 357 363 21 540 553 41 230 237 2 363 370 22 553 567 42 237 243 3 370 377 23 567 580 43 243 250 4 377 383 24 580 593 44 250 267 6 383 390 26 593 607 45 257 283 6 390 397 26 607 620 46 263 270 7 397 4M 27 620 633 47 270 277 8 403 410 28 633 647 48 277 283 9 410 417 29 647 660 49 283 290 10 417 423 30 660 673 50 290 297 11 423 430 31 673 687 51 297 303 12 430 437 32 687 700 52 303 310 13 437 447 33 700 713 53 310 317 14 447 460 34 713 727 54 317 323 15 460 473 35 727 734 55 323 330 16 473 487 36 734 and over, 7.5% of the adjusted tax 330 337 17 487 500 37 337 343 18 500 513 38 343 350 19 513 527 39 82 Stat. 253 Table 3.—Married persons or surviving spouse filing joint return If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $293 0 $420 $427 $20 $553 $560 $40 $293 300 $1 427 433 21 560 567 41 300 307 2 433 440 22 567 573 42 307 313 3 440 447 23 573 580 43 313 320 4 447 453 24 580 593 44 320 327 5 453 460 26 593 607 45 327 333 6 460 467 26 607 620 46 333 340 7 467 473 27 620 633 47 340 347 8 473 480 28 633 647 48 347 363 9 480 487 29 647 660 49 353 360 10 487 493 30 660 673 50 360 367 11 493 500 31 673 687 51 367 373 12 500 507 32 087 700 52 373 380 13 507 613 33 700 713 53 380 387 14 513 520 34 713 727 54 387 303 15 520 527 35 727 734 65 393 400 16 527 533 36 734 and over, 7.5% of the adjusted tax 400 407 17 533 540 37 407 413 18 540 547 38 413 420 19 547 553 39 calendar year 1969 Table 1.—Single person (other than head of household) and married person filing separate return If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $150 0 $270 $280 $13 $510 $530 $26 $150 160 SI 280 290 14 630 550 27 160 170 2 290 310 15 550 570 28 170 180 3 310 330 16 570 590 29 180 190 4 330 350 17 690 610 30 190 200 5 350 370 18 610 630 31 200 210 6 370 390 19 630 650 32 210 220 7 390 410 20 650 670 33 220 230 8 410 430 21 670 690 34 230 240 9 430 450 22 690 710 35 240 250 10 460 470 23 710 730 36 250 260 11 470 490 24 730 and over, 5% of the adjusted tax 260 270 12 490 510 25 Table 2.—Head of household If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $225 0 $345 $385 $13 $510 $530 $26 $225 235 $1 355 365 14 530 550 27 235 245 2 365 375 15 550 570 28 245 255 3 375 385 16 570 590 29 255 265 4 385 395 17 590 610 30 265 278 5 395 405 18 010 630 31 275 285 6 405 415 19 630 660 32 285 295 7 415 425 20 650 670 33 295 305 8 425 435 21 670 690 34 305 315 9 435 450 22 690 710 35 315 325 10 450 470 23 710 730 36 325 335 11 470 490 24 730 and over, 5% of the adjusted tax 335 345 12 490 510 25 82 Stat. 254 Table 2.—Head of household If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— If the adjusted tax is: The tax is— At least But less than At least But less than At least But less than 0 $295 0 $415 $425 $13 $545 $555 $26 $295 305 $1 425 435 14 555 565 27 305 315 2 435 445 15 565 575 28 315 325 3 445 455 18 575 590 29 325 335 4 455 465 17 590 610 30 335 345 5 465 475 IS 610 630 31 345 355 6 475 485 19 630 650 32 355 365 7 485 495 20 650 670 33 365 375 8 495 505 21 670 690 34 375 385 9 505 515 22 690 710 35 385 395 10 515 525 23 710 730 36 395 405 11 525 535 24 730 and over, 5% of the adjusted tax 405 415 12 535 545 25 “(B) Other persons.— In addition to the other taxes imposed by this chapter, there is hereby imposed on the income of every corporation, and on the income of every estate and trust, whose taxable year is the calendar year, a tax equal to the percent of the adjusted tax (as defined in subsection (b)) for the taxable year specified in the following table: Calendar year Percent Estates and trusts Corporations 1968 7.5 10.0 1969 5.0 5.0 “(2) Fiscal and short taxable years.— “(A) In general.— In addition to the other taxes imposed by this chapter and except as provided in subparagraph (B), in the case of taxable years ending on or after the effective date of the surcharge and beginning before July 1, 1969, there is hereby imposed on the income of every person whose taxable year is other than the calendar year, a tax equal to— “(i) 10 percent of the adjusted tax for the taxable year, multiplied by “(ii) a fraction, the numerator of which is the number of days in the taxable year occurring on and after the effective date of the surcharge and before July 1, 1969, and the denominator of which is the number of days in the entire taxable year. “(B) Limitation.— In the case of— “(i) a husband and wife (or surviving spouse) who file a joint return under section 6013 and whose adjusted tax for the taxable year is less than $580, “(ii) an individual who is a head of a household to whom section 1(b) applies and whose adjusted tax for the taxable year is less than $440, and “(iii) any other individual (other than an estate or trust) whose adjusted tax for the taxable year is less than $290, the tax imposed by subparagraph (A) shall not be greater than an amount equal to twice the tax which would be imposed by subparagraph (A) if the tax were imposed on the amount by which the adjusted tax exceeds $290, $220, or $145, respectively. 82 Stat. 255 “(C) Effective date defined.— For purposes of subparagraph (A), the term ‘effective date of the surcharge’ means— “(i) January 1, 1968, in the case of a corporation, and “(ii) April 1, 1968, in the case of any other taxpayer. “(b) Adjusted Tax Defined.— For purposes of this section, the term ‘adjusted tax’ means, with respect to any taxable year, the tax imposed by this chapter for such taxable year, determined without regard to— “(1) the taxes imposed by this section, section 871(a), and section 881; and “(2) any increases in tax under section 47(a) (relating to certain dispositions, etc., of section 38 property) or section 614(c)(4)(C) (relating to increase in tax for deductions under section 615(a) prior to aggregation), and reduced by an amount equal to the amount of any credit which would be allowable under section 37 (relating to retirement income) if no tax were imposed by this section for such taxable year. “(c) Estimated Tax.— For purposes of applying the provisions of this title with respect to declarations, amended declarations, and payments of estimated tax the time prescribed for filing or payment of which is on or after— “(1) in the case of an individual, September 15, 1968, or “(2) in the case of a corporation, June 15, 1968, sections 6654(d)(1) and 6655(d)(1) shall not apply with respect to any taxable year for which a tax is imposed by this section. “(d) Western Hemisphere Trade (Corporations and Dividends on Certain Preferred Stock.— In computing, for a taxable year of a corporation, the fraction described in— “(1) section 244(a)(2), relating to deduction with respect to dividends received on the preferred stock of a public utility, “(2) section 247(a)(2), relating to deduction with respect to certain dividends paid by a public utility, or “(3) section 922(2), relating to special deduction for Western Hemisphere trade corporations, the denominator shall, under regulations prescribed by the Secretary or his delegate, be increased to reflect the rate at which tax is imposed under subsection (a) for such taxable year. “(e) Shareholders of Regulated Investment Companies.— In computing the amount of tax deemed paid under section 852(b)(3)(D)(ii) and the adjustment to basis described in section 852(b)(3)(D)(iii), the percentages set forth therein shall be adjusted under regulations prescribed by the Secretary or his delegate to reflect the rate at which tax is imposed under subsection (a). “(f) Special Rule.— For purposes of this title, to the extent the tax imposed by this section is attributable (under regulations prescribed by the Secretary or his delegate) to a tax imposed by another section of this chapter, such tax shall be deemed to be imposed by such other section.” (b) Technical Amendment.— Section 963(b) (relating to receipt of minimum distributions by domestic corporations) is amended— (1) by striking out the heading of paragraph (1) and inserting in lieu thereof the following: “(1) Taxable years beginning in 1963 and taxable years entirely within the surcharge period.— ”, and (2) by striking out the heading of paragraph (3) and inserting in lieu thereof the following: 82 Stat. 256 “(3) Taxable teaks beginning after 1964 (except taxable years which include any part of the surcharge period) .— ”, and (3) by adding after the table in paragraph (3) the following: “In the case of a taxable year beginning before the surcharge period and ending within the surcharge period, or beginning within the surcharge period and ending after the surcharge period, the required minimum distribution shall be an amount equal to the sum of— “(A) that portion of the minimum distribution which would be required if the provisions of paragraph (1) were applicable to the taxable year, which the number of days in such taxable year which are within the surcharge period bears to the total number of days in such taxable year, plus “(B) that portion of the minimum distribution which would be required if the provisions of paragraph (3) were applicable to such taxable year, which the number of days in such taxable year which are not within the surcharge period bears to the total number of days in such taxable year. As used in this subsection, the term ‘surcharge period’ means the period beginning January 1, 1968, and ending June 30, 1969.” (c) Withholding on Wages.— (1) Percentage method of withholding.— Subsection (a) of section 3402 (relating to requirement of withholding) is amended— (A) by inserting before table 1 therein the following: “(1) In the case of wages paid on or before the 15th day after the date of the enactment of the Revenue and Expenditure Control Act of 1968 or after June 30, 1969:”; and (B) by adding at the end thereof the following: “(2) In the case of wages paid after the 15th day after the date of the enactment of the Revenue and Expenditure Control Act of 1968 and before July 1, 1969: “Table 1— If the payroll period with respect to an employee is WEEKLY “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $4. 0. Over $4 but not over $13. 14% of excess over $4. Over $13 but not over $23. $1.26 plus 15% of excess over $13. Over $23 but not over $85. $2.76 plus 19% of excess over $23. Over $85 but not over $169 $14.54 plus 22% of excess over $85. Over $169 but not over $212. $33.02 plus 28% of excess over $169. Over $212. $45.06 plus 33% of excess over $212. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $4. 0. Over $4 but not over $23. 14% of excess over $4. Over $23 but not over $58. $2.66 plus 15% of excess over $23. Over $58 but not over $169. $7.91 plus 19% of excess over $58. Over $169 but not over $340. $29.00 plus 22% of excess over $169. Over $340 but not over $423. $66.62 plus 28% of excess over $340. Over $423. $58.86 plus 33% of excess over $423. 82 Stat. 257 “Table 2— If the payroll period with respect to an employee is BIWEEKLY “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $8. 0. Over $8 but not over $27. 14% of excess over $8. Over $27 but not over $46. $2.66 plus 15% of excess over $27. Over $46 but not over $169. $5.51 plus 19% of excess over $46. Over $169 but not over $338 $28.88 plus 22% of excess over $169. Over $338 but not over $423. $66.06 plus 28% of excess over $338. Over $423. $89.86 plus 33% of excess over $423. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $8. 0. Over $8 but not over $46. 14% of excess over $8. Over $46 but not over $115. $5.32 plus 15% of excess over $46. Over $115 but not over $338. $15.67 plus 19% of excess over $115. Over $338 but not over $681. $58.04 plus 22% of excess over $338. Over $681 but not over $846. $133.50 plus 28% of excess over $681. Over $846. $179.70 plus 33% of excess over $846. “Table 3— If the payroll period with respect to an employee is SEMIMONTHLY “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $8 0. Over $8 but not over $29. 14% of excess over $8. Over $29 but not over $50. $2.94 plus 15% of excess over $29. Over $50 but not over $183. $6.09 plus 19% of excess over $50. Over $183 but not over $367. $31.36 plus 22% of excess over $183. Over $367 but not over $458. $71.84 plus 28% of excess over $367. Over $458. $97.32 plus 33% of excess over $458. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $8. 0. Over $8 but not over $50. 14% of excess over $8. Over $50 but not over $125. $5.88 plus 15% of excess over $50. Over $125 but not over $367. $17.13 plus 19% of excess over $125. Over $367 but not over $738. $63.11 plus 22% of excess over $367. Over $738 but not over $917. $144.73 plus 28% of excess over $738. Over $917. $194.85 plus 33% of excess over $917. “Table 4— If the payroll period with respect to an employee is MONTHLY “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $17. 0. Over $17 but not over $58. 14% of excess over $17. Over $58 but not over $100. $5.74 plus 15% of excess over $58. Over $100 but not over $367. $12.04 plus 19% of excess over $100. Over $367 but not over $733. $62.77 plus 22% of excess over $367. Over $733 but not over $917. $143.29 plus 28% of excess over $733. Over $917. $194.81 plus 33% of excess over $917. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $17. 0. Over $17 but not over $100. 14% of excess over $17. Over $100 but not over $250. $11.62 plus 15% of excess over $100. Over $250 but not over $733. $34.12 plus 19% of excess over $250. Over $733 but not over $1475. $123.89 plus 22% of excess over $733. Over $1475 but not over $1833. $289.13 plus 28% of excess over $1475. Over $1833. $389.37 plus 33% of excess over $1833. 82 Stat. 258 ‘Table 5.— If the payroll period with respect to an employee is QUARTERLY “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $50. 0. Over $50 but not over $175. 14% of excess over $50. Over $175 but not over $300. $17.50 plus 15% of excess over $175. Over $300 but not over $1100. $36.25 plus 19% of excess over $300. Over $1100 but not over $2200. $188.25 plus 22% of excess over $1100. Over $2200 but not over $2750. $430.25 plus 28% of excess over $2200. Over $2750. $584.25 plus 33% of excess over $2750. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $50. 0. Over $50 but not over $300. 14% of excess over $50. Over $300 but not over $750. $35.00 plus 15% of excess over $300. Over $750 but not over $2200. $102.50 plus 19% of excess over $750. Over $2200 but not over $4425. $378.00 plus 22% of excess over $2200. Over $4425 but not over $5500. $867.50 plus 28% of excess over $4425. Over $5500. $1168.50 plus 33% of excess over $5500. “Table 6— If the payroll period with respect to an employee is SEMIANNUAL “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $100. 0. Over $100 but not over $350. 14% of excess over $100. Over $350 but not over $600. $35.00 plus 15% of excess over $350. Over $600 but not over $2200. $72.50 plus 19% of excess over $600. Over $2200 but not over $4400. $376.00 plus 22% of excess over $2200. Over $4400 but not over $5500. $860.50 plus 28% of excess over $4400. Over $5500. $1168.50 plus 33% of excess over $5500. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $100. 0. Over $100 but not over $600. 14% of excess over $100. Over $600 but not over $1500. $70.00 plus 15% of excess over $600. Over $1500 but not over $4400. $205.00 plus 19% of excess over $1500. Over $4400 but not over $8850. $756.00 plus 22% of excess over $4400. Over $8850 but not over $11,000. $1735.00 plus 28% of excess over $8850. Over $11,000. $2337.00 plus 33% of excess over $11,000. “Table 7—If the payroll period with respect to an employee is ANNUAL “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $200. 0. Over $200 but not over $700. 14% of excess over $200. Over $700 but not over $1200. $70 plus 15% of excess over $700. Over $1200 but not over $4400. $145 plus 19% of excess over $1200. Over $4400 but not over $8800. $753 plus 22% of excess over $4400. Over $8850 but not over $11,000. $1,721 plus 28% of excess over $8800. Over $11,000. $2,337 plus 33% of excess over $11,000. 82 Stat. 259 “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $200. 0. Over $200 but not over $1200. 14% of excess over $200. Over $1200 but not over $3000. $140 plus 15% of excess over $1200. Over $3000 but not over $8800. $410 plus 19% of excess over $3000. Over $8800 but not over $17,700. $1,512 plus 22% of excess over $8800. Over $17,700 but not over $22,000 $3,407 plus 28% of excess over $17,700. Over $22,000. $4,647 plus 33% of excess over $22,000. “Table 8—It the payroll period with reaped to an employee is a DAILY payroll or a miscellaneous payroll period “(a) Single Person— Including Head of Household: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $0.50. 0. Over 0.05 but not over $1.90. 14% of excess over $0.50. Over $1.90 but not over $3.30. $0.20 plus 15% of excess over $1.90. Over $3.30 but not over $12.10. $0.41 plus 19% of excess over $3.30. Over $12.10 but not over $24.10. $2.08 plus 22% of excess over $12.10. Over $24.10 but not over $30.10. $4.72 plus 28% of excess over $24.10. Over $30.10. $6.40 plus 33% of excess over $30.10. “(b) Married Person: If the amount of wages is: The amount of income tax to be with-held shall be: Not over $0.50 0. Over 0.05 but not over $3.30. 14% of excess over $0.50. Over $3.30 but not over $8.20. $0.39 plus 15% of excess over $3.30. Over $8.20 but not over $24.10. $1.13 plus 19% of excess over $8.20. Over $24.10 but not over $48.50. $4.15 plus 22% of excess over $24.10. Over $48.50 but not over $60.30. $9.52 plus 28% of excess over $48.50. Over $60.30. $12.82 plus 33% of excess over $60.30. (2) Wage bracket withholding.— Subsection (c) of section 3402 (relating to wage bracket withholding) is amended by adding at the end thereof the following new paragraph: “(6) In the case of wages paid after the 15th day after the date of the enactment of the Revenue and Expenditure Control Act of 1968, and before July 1, 1969, the amount deducted and withheld under paragraph (1) shall be determined in accordance with tables prescribed by the Secretary or his delegate in lieu of the tables contained in paragraph (1). The tables so prescribed shall be the same as the tables contained in paragraph (1), except that amounts and rates set forth as amounts and rates of tax to be deducted and withheld shall be computed on the basis of table 7 contained in subsection (a)(2).” (d) Clerical Amendment.— The table of parts of subchapter A of chapter 1 is amended by adding at the end thereof the following: “Part V. Tax surcharge.” (e) Effective Date.— Except as provided by section 104, the amendments made by this section (other than subsection (c)) shall apply— (1) Insofar as they relate to taxpayers other than corporations, to taxable years ending after March 31, 1968, and beginning before July 1, 1969. 82 Stat. 260 (2) Insofar as they relate to corporations, to taxable years ending after December 31, 1967, and beginning before July 1, 1969.