Pub. L. 93-69, tit. I, sec. 102

Sec. 102. (a) Section 3201 of the Internal Revenue Code of 1954 (relating to the rate of tax on employees under the Railroad Retirement Tax Act) is amended by striking out all that appears therein and inserting in lieu thereof the following: “In addition to other taxes, there is hereby imposed on the income of every employee a tax equal to the rate of the tax imposed with respect to wages by section 3101(a) of the Internal Revenue Code of 1954 plus the rate imposed by section 3101(b) of such Code of so much of the compensation paid to such employee for services rendered by him after September 30, 1973, as is not in excess of an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954 for any month after September 30, 1973.” (b) Section 3202(a) of such Code is amended— (1) by striking out “1965” wherever it appears in the second sentence thereof and inserting in lieu thereof “1973”; (2) by striking out “(i) $450, or (ii)” wherever it appears in the second sentence thereof; and (3) by striking out “, whichever is greater,” wherever it appears in the second sentence thereof. (c) Section 3211(a) of such Code (relating to the rate of tax on employee representatives under the Railroad Retirement Tax Act) is amended by striking out all that appears therein and inserting in lieu thereof the following: “(a) In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to 9.5 percent plus the sum of the rates of tax imposed with respect to wages by sections 3101(a), 3101(b), 3111 (a), 3111(b) of the Internal Revenue Code of 1954 of so much of the compensation paid to such employee representative for services rendered by him after September 30, 1973, as is not in excess of an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954 for any month after September 30, 1973.” (d) Section 3221(a) of such Code (relating to the rate of tax on employers under the Railroad Retirement Tax Act) is amended by striking out “In addition to other taxes” and all that follows to “except that” and inserting in lieu thereof the following: 87 Stat. 163 “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 9.5 percent of so much of the compensation paid by such employer for services rendered to him after September 30, 1973, as is, with respect to any employee for any calendar month, not in excess of an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954 for any month after September 30, 1973;”. (e) Section 3221(a) of such Code, as amended by section 102(d) of this Act, is further amended— (1) by striking out “1965” wherever it appears in the first sentence thereof and inserting in lieu thereof “1973”; (2) by striking out “(i) $450, or (ii)” wherever it appeal’s in the first sentence thereof; and (3) by striking out “, whichever is greater,” wherever it appears in the first, sentence thereof. (f) Section 3221(b) of such Code is amended by striking out all that appears therein and inserting in lieu thereof the following: “(b) The rate of tax imposed by subsection (a) shall be increased, with respect to compensation paid for services rendered after September 30, 1973, by the rate of tax imposed with respect to wages by section 3111(a) of the Internal Revenue Code of 1954 plus the rate imposed by section 3111 (b) of such Code.”