Page:United States Statutes at Large Volume 100 Part 1.djvu/362

 100 STAT. 326

PUBLIC LAW 99-272—APR. 7, 1986 "(B) zero for any other taxable period. "(4) BASIC RATE NOT TO APPLY TO RAIL WAGES PAID AFTER

SEPTEMBER 30, 1990.—The basic rate under paragraph (1>(A, shall not apply to rail wages paid after September 30, 1990 " OJ) BASE OF TAX TO B E COMPENSATION USED FOR RAILROAD RETIRE-

26 USC 3323.

MENT TAX PURPOSES.—Subsection (b) of section 3323 of such Code (defining rail wages) is amended to read as follows: "(b) RAIL WAGES.—

26 USC 3231. 26 USC 3201.

"(1) IN GENERAL.—For purposes of this chapter, the term 'rail wages' means compensation (as defined in section 3231(e) for purposes of the tax imposed by section 3201(a)) with the modifications specified in paragraph (2). "(2) MODIFICATIONS.—In applying subsection (e) of section 3231 for purposes of paragraph (1)— "(A) ONLY EMPLOYMENT COVERED BY RAILROAD UNEMPLOYMENT INSURANCE ACT TAKEN INTO ACCOUNT.—Such subsec-

26 USC 3321.

tion (e) shall be applied— "(i) by substituting 'rail employment' for 'services' each place it appears, "(ii) by substituting 'rail employer' for 'employer' each place it appears, and "(iii) by substituting 'rail employee' for 'employee' each place it appears. "(B) $7,000 WAGE BASE.—Such subsection (e) shall be applied by substituting for 'the applicable base' in paragraph (2)(A)(i) thereof— "(i) except as provided in clauses (ii) and (iii),'$7,000', "(ii) '$3,500' for the taxable period beginning on July 1, 1986, and ending on December 31, 1986, and "(iii) for purposes of applying the basic rate under section 3321(c)(1)(A), '$5,250' for the taxable period beginning on January 1, 1990. "(C) SUCCESSOR EMPLOYERS.—For purposes of this subsection, rules similar to the rules applicable under section 3231(e)(2)(C) shall apply." (c) USE OF TAXES.—

45 USC 231n ^°^-

(1) IN GENERAL.—Paragraph (2) of section 232(a) of the Railroad Retirement Revenue Act of 1983 (relating to tax used to repay loans made to railroad unemployment insurance account) is amended to read as follows: "(2) TAXES CREDITED AGAINST LOANS TO RAILROAD UNEMPLOYMENT INSURANCE ACCOUNT.— "(A) TAXES ATTRIBUTABLE TO BASIC RATE TO REDUCE RAILROAD UNEMPLOYMENT LOANS MADE BEFORE OCTOBER 1,

1985.—So much of the amount transferred under paragraph (1) as is attributable to the basic rate under section 3321(c)(1)(A) of the Internal Revenue Code of 1954 shall be credited against, and operate to reduce, the outstanding balance of railroad unemployment loans made before October 1, 1985. "(B) T A X E S ATTRIBUTABLE TO SURTAX RATE TO REDUCE RAILROAD UNEMPLOYMENT LOANS MADE AFTER SEPTEMBER 30,

1985.—So much of the amount transferred under paragraph (1) as is attributable to the surtax rate under section 3321(c)(l)(B) of such Code shall be credited against, and operate to reduce, the outstanding balance of railroad unemployment loans made after September 30, 1985."

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