INCREASE IN FEDERAL UNEMPLOYMENT TAX WAGE BASE AND RATE.

SEC. 211. INCREASE IN FEDERAL UNEMPLOYMENT TAX WAGE BASE AND RATE. (a) Increase in Wage Base.—Paragraph (1) of section 3306(b) of the Internal Revenue Code of 1954 (defining wages) is amended by striking out “$4,200” each place it appears and inserting in lieu thereof “$6,000”. (b) Increase in Tax Rate.—Section 3301 of such Code (relating to rate of Federal unemployment tax) is amended to read as follows: “SEC. 3301. RATE OF TAX.“There is hereby imposed on every employer (as defined in section 3306(a)) for each calendar year an excise tax, with respect to having individuals in bis employ, equal to— “(1) 3.4 percent, in the case of a calendar year beginning before the first calendar year a fter 1976, as of January 1 of which there is not a balance of repayable advances made to the extended unemployed compensation account (established by section 905(a) of the Social Security Act); or “(2) 3.2 percent, in the case of such first calendar year and each calendar year thereafter; of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306(c)).”. (c) Technical Amendments.— (1) Subparagraph (C) of section 901(c)(3) of the Social Security Act is amended to read as follows: “(C) Each estimate of net receipts under this paragraph shall be based upon (i) a tax rate of 0.5 percent in the case of any calendar year for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 3.2 percent, and (ii) a tax rate of 0.7 per-cent in the case of any calendar year for which the rate of tax under such section 3301 is 3.4 percent.”. 90 STAT. 2677 (2) The last sentence of section 905(b)(1) of such Act is amended to read as follows: “In the case of any month after March 1977 and before April of the first calendar year to which paragraph (2) of section 3301 of the Federal Unemployment Tax Act applies, the first sentence of this paragraph shall be applied by substituting ‘five-fourteenths’ for ‘one-tenth’.”. (3) The last sentence of section 6157(b) of the Internal Revenue Code of 1954 is amended to read as follows; “In the case of wages paid in any calendar quarter or other period during a calendar year to which paragraph (1) of section 3301 applies, the amount of such wages shall be multiplied by 0.7 percent in lieu of 0.5 percent.”. (d) Effective Dates.— (1) Subsection (a).—The amendment made by subsection (a) shall apply to remuneration paid after December 31, 1977. (2) Subsection (b).—The amendment made by subsection (b) shall apply to remuneration paid after December 31, 1976. (3) Subsection (c).—The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.