TAX RATES FOR SINGLE INDIVIDUALS AND HEADS OF HOUSEHOLDS; OPTIONAL TAX.

SEC. 803. TAX RATES FOR SINGLE INDIVIDUALS AND HEADS OF HOUSEHOLDS; OPTIONAL TAX. (a) Rates of Tax on Individuals.—Section 1 (relating to the tax imposed) is amended to read as follows: 83 Stat. 679 “SECTION 1. TAX IMPOSED. “(a) Married Individuals Filing Joint Returns and Surviving Spouses.—There is hereby imposed on the taxable income of— “(1) every married individual (as defined in section 143) who makes a single return jointly with his spouse under section 6013, and “(2) every surviving spouse (as defined in section 2(a)), A tax determined in accordance with the following table: “If the taxable income is: The tax is: Not over $1,000 14% of the taxable income. Over $1,000 but not over $2,000 $140, plus 15% of excess over $1,000. Over $2,000 but not over $3,000 $290, plus 16% of excess over $2,000. Over $3,000 but not over $4,000 $450, plus 17% of excess over $3,000. Over $4,000 but not over $8,000 $620, plus 19% of excess over $4,000. Over $8,000 but not over $12,000 $1,380, plus 22% of excess over $8,000. Over $12,000 but not over $16,000 $2,260, plus 25% of excess over $12,000. Over $16,000 but not over $20,000 $3,260, plus 28% of excess over $16,000. Over $20,000 but not over $24,000 $4,380, plus 32% of excess over $20,000. Over $24,000 but not over $28,000 $5,660, plus 36% of excess over $24,000. Over $28,000 but not over $32,000 $7,100, plus 39% of excess over $28,000. Over $32,000 but not over $36,000 $8,660, plus 42% of excess over $32,000. Over $36,000 but not over $40,000 $10,340, plus 45% of excess over $36,000. Over $40,000 but not over $44,000 $12,140, plus 48% of excess over $40,000. Over $44,000 but not over $52,000 $14,060, plus 50% of excess over $44,000. Over $52,000 but not over $64,000 $18,060, plus 53% of excess over $52,000. Over $64,000 but not over $76,000 $24,420, plus 55% of excess over $64,000. Over $76,000 but not over $88,000 $31,020, plus 58% of excess over $76,000. Over $88,000 but not over $100,000 $37,980, plus 60% of excess over $88,000. Over $100,000 but not over $120,000 $45,180, plus 62% of excess over $100,000. Over $120,000 but not over $140,000 $57,580, plus 64% of excess over $120,000. Over $140,000 but not over $160,000 $70,380, plus 66% of excess over $140,000. Over $160,000 but not over $180,000 $83,580, plus 68% of excess over $160,000. Over $180,000 but not, over $200,000 $97,180, plus 69% of excess over $180,000. Over $200,000 $110,980, plus 70% of excess over $200,000. 83 Stat. 680 “(b) Heads of Households.—There is hereby imposed on the taxable income of every individual who is the head of a honsehold (as defined in section 2(b)) a tax determined in accordance with the following table: “If the taxable income is: The tax is: Not over $1,000 14% of the taxable income. Over $1,000 but not over $2,000 $140, plus 16% of excess over $1,000. Over $2,000 but not over $4,000 $300, plus 18% of excess over $2,000. Over $4,000 but not over $6,000 $660, plus 19% of excess over $4,000. Over $6,000 but not over $8,000 $1,040, plus 22% of excess over $6,000. Over $8,000 but not over $10,000 $1,480, plus 23% of excess over $8,000. Over $10,000 but not over $12,000 $1,940, plus 25% of excess over $10,000. Over $12,000 but not over $14,000 $2,440, plus 27% of excess over $12,000. Over $14,000 but not over $16,000 $2,980, plus 28% of excess over $14,000. Over $16,000 but not over $18,000 $3,540, plus 31% of excess over $16,000. Over $18,000 but not over $20,000 $4,160, plus 32% of excess over $15,000. Over $20,000 but not over $22,000 $4,800, plus 35% of excess over $20,000. Over $22,000 but not over $24,000 $5,500, plus 36% of excess over $22,000. Over $24,000 but not over $26,000 $6,220, plus 38% of excess over $24,000. Over $26,000 but not over $28,000 $6,980, plus 41% of excess over $26,000. Over $28,000 but not over $32,000 $7,800, plus 42% of excess over $28,000. Over $32,000 but not over $36,000 $9,480, plus 45% of excess over $32,000. Over $36,000 but not over $38,000 $11,280, plus 48% of excess over $36,000. Over $38,000 but not over $40,000 $12,240, plus 51% of excess over $38,000. Over $40,000 but not over $44,000 $13,260, plus 52% of excess over $40,000. Over $44,000 but not over $50,000 $15,340, plus 55% of excess over $44,000. Over $50,000 but not over $52,000 $18,640, plus 56% of excess over $50,000. Over $52,000 but not over $64,000 $19,760, plus 58% of excess over $52,000. Over $64,000 but not over $70,000 $26,720, plus 50% of excess over $64,000. Over $70,000 but not over $76,000 $30,260, plus 61% of excess over $70,000. Over $76,000 but not over $80,000 $33,920, plus 62% of excess over $76,000. Over $80,000 but not over $88,000 $36,400, puss 63% of excess over $80,000. Over $88,000 but not over $100,000 $41,440, plus 64% of excess over $58,000. Over $100,000 but not over $120,000 $49,120, plus 66% of excess over $100,000. Over $120,000 but not over $140,000 $62,320, plus 67% of excess over $120,000. Over $140,000 but not over $160,000 $73,720, plus 68% of excess over $140,000. Over $160,000 but not over $180,000 $89,320, plus 69% of excess over $160,000. Over $180,000 $103,120, plus 70% of excess over $180,000. 83 Stat. 681 “(c) Unmarried Individuals (Other Than Surviving Spouses and Heads of Households).—There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 143) a tax determined in accordance with the following table: “If the taxable income is: The tax is: Not over $500 14% of the taxable income. Over $500 but not over $1,000 $70, plus 15% of excess over $500. Over $1,000 but not over $1,500 $145, plus 16% of excess over $1,000. Over $1,500 but not over $2,000 $225, plus 17% of excess over $1,500. Over $2,000 but not over $4,000 $310, plus 19% of excess over $2,000. Over $4,000 but not over $6,000 $690, plus 21% of excess over $4,000. Over $6,000 but not over $5,000 $1,110, plus 24% of excess over $6,000. Over $5,000 but not over $10,000 $1,500, plus 25% of excess over $8,000. Over $10,000 but not over $12,000 $2,190, plus 27% of excess over $10,000. Over $12,000 but not over $14,000 $2,630, plus 29% of excess over $12,000. Over $14,000 but not over $16,000 $3,210, plus 31% of excess over $14,000. Over $16,000 but not over $18,000 $3,330, plus 34% of excess over $16,000. Over $18,000 but not over $20,000 $4,510, plus 36% of excess over $18,000. Over $20,000 but not over $22,000 $5,230, plus 38% of excess over $20,000. Over $22,000 but not over $26,000 $5,960, plus 40% of excess over $22,000. Over $26,000 but not over $32,000 $7,590, plus 45% of excess over $26,000. Over $32,000 but not over $38,000 $10,290, plus 50% of excess over $32,000. Over $33,000 but not over $44,000 $13,290, plus 55% of excess over $38,000. Over $44,000 but not over $50,000 $16,500, plus 60% of excess over $44,000. Over $50,000 but not over $60,000 $20,190, plus 62% of excess over $50,000. Over $60,000 but not over $70,000 $26,390, plus 64% of excess over $60,000. Over $70,000 but not over $80,000 $32,790, plus 66% of excess over $70,000. Over $80,000 but not over $90,000 $39,390, plus 68% of excess over $80,000. Over $90,000 but not over $100,000 $46,190, plus 69% of excess over $90,000. Over $100,000 $53,090, plus 70% of excess over $100,000. “(d) Married Individuals Filing Separate Returns; Estates and Trusts.—There is hereby imposed on the taxable income of every married individual (as defined in section 143) who does not make a single return jointly with his spouse under section 6013, and of every estate and trust taxable under this subsection, a tax determined in accordance with the following table: “If the taxable income is: The tax is: Not over $500 14% of the taxable income. Over $500 but not over $1,000 $70, plus 15% of excess over $500. Over $1,000 but not over $1,500 $145, plus 16% of excess over $1,000. Over $1,500 but not over $2,000 $225, plus 17% of excess over $1,500. Over $2,000 but not over $4,000 $310, plus 19% of excess over $2,000. 83 Stat. 682 “If the taxable income is: The tax is: Over $4,000 but not over $6,000 $690, plus 22% of excess over $4,000. Over $6,000 but not over $8,000 $1,130, plus 25% of excess over $6,000. Over $8,000 but not over $10,000 $1,630, plus 28% of excess over $8,000. Over $10,000 but not over $12,000 $2,190, plus 32% of excess over $10,000. Over $12,000 but not over $14,000 $2,830, plus 36% of excess over $12,000. Over $14,000 but not over $16,000 $3,550, plus 39% of excess over $14,000. Over $10,000 but not over $18,000 $4,330, plus 42% of excess over $16,000. Over $18,000 but not over $20,000 $5,170, plus 45% of excess over $18,000. Over $20,000 but not over $22,000 $6,070, plus 48% of excess over $20,000. Over $22,000 but not over $26,000 $7,030, plus 50% of excess over $22,000. Over $20,000 but not over $32,000 $9,030, plus 53% of excess over $26,000. Over $32,000 but not over $38,000 $12,210, plus 55% of excess over $32,000. Over $38,000 but not over $44,000 $15,510, plus 58% of excess over $38,000. Over $44,000 but not over $50,000 $18,990, plus 60% of excess over $44,000. Over $50,000 but not over $60,000 $22,590, plus 62% of excess over $50,000. Over $60,000 but not over $70,000 $28,790, plus 64% of excess over $60,000. Over $70,000 but not over $80,000 $35,190, plus 66% of excess over $70,000. Over $80,000 but not over $90,000 $41,790, plus 68% of excess over $80,000. Over $90,000 but not over $100,000 $48,590, plus 69% of excess over $90,000. Over $100,000 $55,490, plus 70% of excess over $100,000.” (b) Definitions and Special Rules.—Section 2 (relating to tax in case of joint return or return of surviving spouse) is amended to read as follows: “SEC. 2. DEFINITIONS AND SPECIAL RULES. “(a) Definition of Surviving Spouse.— “(1) In general.—For purposes of section 1, the term ‘surviving spouse’ means a taxpayer— “(A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and “(B) who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (i) who (within the meaning of section 152) is a son, stepson, daughter, or stepdaughter of the taxpayer, and (ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151. For purposes of this paragraph, an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual. “(2) Limitations.—Notwithstanding paragraph (1), for purposes of section 1 a taxpayer shall not be considered to be a surviving spouse— “(A) if the taxpayer has remarried at any time before the close of the taxable year, or 83 Stat. 683 “(B) unless, for the taxpayer’s taxable year during which his spouse died, a joint return could have been made under the provisions of section 6013 (without regard to subsection (a)(3) thereof). “(b) Definition of Head of Household.— “(1) In general.—For purposes of this subtitle, an individual shall be considered a head of a household if, and only if, such individual is not married at the close of his taxable year, is not a surviving spouse (as defined in subsection (a)), and either— “(A) maintains as his home a household which constitutes for such taxable year the principal place of abode, as a member of such household, of— “(i) a son, stepson, daughter, or stepdaughter of the taxpayer, or a descendant of a son or daughter of the taxpayer, but if such son, stepson, daughter, stepdaughter, or descendant is married at the close of the taxpayer’s taxable year, only if the taxpayer is entitled to a deduction for the taxable year for such person under section 151, or “(ii) any other person who is a dependent of the taxpayer, if the taxpayer is entitled to a deduction for the taxable year for such person under section 151, or “(B) maintains a household which constitutes for such taxable year the principal place of abode of the father or mother of the taxpayer, if the taxpayer is entitled to a deduction for the taxable year for such father or mother under section 151. For purposes of this paragraph, an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual. “(2) Determination of status.—For purposes of this subsection— “(A) a legally adopted child of a person shall be considered a child of such person by blood; “(B) an individual who is legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married; “(C) a taxpayer shall be considered as not married at the close of his taxable year if at any time during the taxable year his spouse is a nonresident alien; and “(D) a taxpayer shall be considered as married at the close of his taxable year if his spouse (other than a spouse described in subparagraph (C)) died during the taxable year. “(3) Limitations.—Notwithstanding paragraph (1), for purposes of this subtitle a taxpayer shall not be considered to be a head of a household— “(A) if at any time during the taxable year he is a nonresident alien; or “(B) by reason of an individual who would not be a dependent for the taxable year but for— “(i) paragraph (9) of section 152(a), “(ii) paragraph (10) of section 152(a), or “(iii) subsection (c) of section 152. “(c) Certain Married Individuals Living Apart.—For purposes of this part, an individual who, under section 143(b), is not to be considered as married shall not be considered as married. 83 Stat. 684 “(d) Nonresident Aliens.—In the case of a nonresident alien individual, the tax imposed by section 1 shall apply only as provided by section 871 or 877. “(e) Cross Reference.— “For definition of taxable income, see section 63.” (c) Optional Tax Tables for Individuals.—Section 3 (relating to optional tax if adjusted gross income is less than $5,000) is amended to read as follows: “SEC. 3. OPTIONAL TAX TABLES FOR INDIVIDUALS. “In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year beginning after December 31, 1969, on the taxable income of every individual whose adjusted gross income for such year is less than $10,000 and who has elected for such year to pay the tax imposed by this section, a tax determined under tables, applicable to such taxable year, which shall be prescribed by the Secretary or his delegate. In the tables so prescribed, the amounts of tax shall be computed on the basis of the taxable income computed by taking the standard deduction and on the basis of the rates prescribed by section 1.” (d) Technical, Conforming, and Clerical Amendments.— (1) Section 6014(a) (relating to election by taxpayer) is amended— (A) by striking out “$5,000” in the first sentence, and inserting in lieu thereof “$10,000”, and (B) by striking out the last two sentences. (2) Section 511(b)(1) (relating to imposition of tax on unrelated business income of charitable, etc., organizations) is amended by striking out “section 1”, in the first sentence of such section, and inserting in lieu thereof “section 1(d)”. (3) Section 641 (relating to imposition of tax in respect of estates and trusts) is amended by striking out “The taxes imposed by this chapter on individuals” in subsection (a) and inserting in lieu thereof “The tax imposed by section 1(d)”. (4) Section 632 (relating to sale of oil or gas properties) is amended— (A) by striking out “surtax” and inserting in lieu thereof “tax”, and (B) by striking out “30 percent” and inserting in lieu thereof “33 percent”. (5) Section 1347 (relating to claims against United States involving acquisition of property) is amended— (A) by striking out “surtax” and inserting in lieu thereof “tax”, and (B) by striking out “30 percent” and inserting in lieu thereof “33 percent”. (6) Paragraphs (1) and (5) of section 5(b) (cross references) are each amended by striking out “surtax” and inserting in lieu thereof “tax”. (7) Section 6015(a)(1) (relating to declaration of estimated income tax by individuals) is amended— (A) by striking out “section 1(b)(2)” each place it appears and inserting in lieu thereof “section 2(b)”, and (B) by striking out “section 2(b)” each place it appears and inserting in lieu thereof “section 2(a)”. (8) Section 1304(b)(1) (relating to special rules) is amended by striking out “if adjusted gross income is less than $5,000”. 83 Stat. 685 (9) The table of sections for part I of subchapter A of chapter 1 is amended by striking out the second and third items and inserting in lien thereof the following: “Sec. 2. Definitions and special rules. “Sec. 3. Optional tax tables for individuals.” (e) Section 21(d) (relating to changes in rates during a taxable year) is amended to read as follows: “(d) Changes Made by Tax Reform Act of 1909 in Case of Individuals.—In applying subsection (a) to a taxable year of an individual which is not a calendar year, each change made by the Tax Reform Act of 1969 in part I or in the application of part IV or V of subchapter B for purposes of the determination of taxable income shall be treated as a change in a rate of tax.” (f) Effective Dates.—The amendments made by subsections (a), (b), and (d) (other than paragraphs (1) and (8)) shall apply to taxable years beginning after December 31, 1970, except that section 2(c) of the Internal Revenue Code of 1954, as amended by subsection (b), shall also apply to taxable years beginning after December 31, 1969. The amendments made by subsections (c), (d)(1), and (d)(8) shall apply to taxable years beginning after December 31, 1969.