Page:United States Statutes at Large Volume 62 Part 1.djvu/141

 80TH CONG., 2D SESS.-CH. 16S-APR. 2, 1948 TITLE I-INCOME TAX REDUCTION SEC. 101. REDUCTION OF NORMAL TAX AND SURTAX. Section 12 (c) of the Internal Revenue Code is hereby amended to read as follows: "(c) REDUCTION OF TENTATIVE NORMAL TAX AND TENTATIVE SUR- TAX.- " (1) The combined normal tax and surtax under section 11 and subsection (b) of this section shall be the aggregate of the tenta- tive normal tax and tentative surtax, reduced as follows: If the aggregate is: The reduction shall be: Not over $400-- __  --. 17% of the aggregate. Over $400 but not over $100,000--- $68 plus 12% of excess over $400. Over $100,000---. $12,020 plus 9.75% of excess over $100,000. "(2) In no event shall the combined normal tax and surtax exceed 77 per centum of the net income." SEC. 102. REDUCTION IN SUPPLEMENT T TAX. For reduction in the tax under Supplement T of Chapter 1 of the Internal Revenue Code (tax table which may be used by taxpayer at his election if his adjusted gross income is less than $5,000), see section 401. SEC. 103. INCOME OF HUSBAND AND WIFE. For tax in case of joint return of husband and wife (the so-called "splitting of income"), see section 301. SEC. 104. TECHNICAL AMENDMENTS. (a) Section 11 of the Internal Revenue Code (relating to the normal tax on individuals) is hereby amended by striking out "by 5 per centum thereof" and inserting in lieu thereof "as provided in section 12 (c) ". (b) Section 12 (b) of the Internal Revenue Code (relating to the rate of surtax on individuals) is hereby amended by striking out "by 5 per centum thereof" and inserting in lieu thereof "as provided in subsection (c) of this section". (c) Subsections (d), (e), (f), (g), and (h) of section 12 of the Internal Revenue Code are amended to read as follows: "(e) COMPUTATIoN OF TAX WITHOUT REGARD TO CREDITS AGAINST TAx. -In the application of this section, the combined normal tax and surtax shall be computed without regard to the credits provided in sections 31, 32, and 35. "(f) ASCERTAINMENT OF NORMAL TAX AND SURTAX SEPARATELY.- Whenever it is necessary to ascertain the normal tax and the surtax separately, the surtax shall be an amount which is the same proportion of the combined normal tax and surtax as the tentative surtax is of the aggregate of the tentative normal tax and tentative surtax; and the normal tax shall be the remainder of such combined normal tax and surtax. "(g) CROSS REFERENCES. - "(1) ALTERNATIVE TAX.- For alternative tax which may be elected if adjusted gross income is less than $5,000, see Supple- ment T. "(2) TAX IN CASE OF CAPITAL GAINS. - For rate and computation of alternative tax in lieu of normal tax and surtax in the case of capital gain from the sale or exchange of capital assets held for more than 6 months, see section 117 (c). "(3) TAX ON PERSONAL HOLDING COMPANIES.- For surtax on personal holding companies, see section 500. 53 Stat. 6. 26U.S.C.§12(c). 53 Stat. 5. 26U.S.C.§§11,12 (b). Infra. 55 Stat. 689. 26U.S.C.§§400- 404. Post, p. 128. Post, p. 114. 59 Stat. 557. 26U.S.C. 11. Supra. 59 Stat. 557. 26U.S.C. 12(b). Supra. 53 Stat. 6; 58 Stat. 2.32. 26 U.S. C. 1 12(d)- (h). 53 Stat. 24; 56 Stat. 893. 26 U.S. C.§§ 31, 32, 35. 55 Stat. 689. 26U.S.C.§§400- 404. Post, p. 128. 53 Stat. 51. 265U.S.C. 117 (c). 53 Stat. 104. 26 U.S. C. { 850. C2 STAT.] 111

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