Page:United States Statutes at Large Volume 78.djvu/182

 140

68A Stat. 10. 26 USC 4.

Ante, p. 129 26 USC 3

XntZ'^/'ig. 26 USC 1.

Anfe, p. 23. 26 USC 141

26 USC 143. 26 USC 6014.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

(b) RULES FOR O P T I O N A L T A X. — (1) H U S B A N D OR W I F E FILING SEPARATE RETURNS.—Subsection (c) of section 4 ( r e l a t i n g to rules for o p t i o n a l tax) is amended to read as lollows: " (c) HUSBAND OR W I F E F I L I N G SEPARATE RETURN.—

"(1) A husband or wife may not elect to pay the optional tax imposed by section 3 if the tax of the other spouse is determined under section 1 on the basis of taxable income computed without regard to the standard deduction. " (2) Except as otherwise provided in this subsection, in the case of a husband or wife filing a separate return the tax imposed by section 3 shall be— " (A) for taxable years beginning in 1964, the lesser of the tax shown in Table IV or Table V of section 3(a), and " (B) for taxable years beginning after December 31, 1964, the lesser of the tax shown in Table IV or Table V of section 3(b). "(3) Neither Table V of section 3(a) nor Table V of section 3(b) shall apply in the case of a husband or wife filing a separate return if the tax of the other spouse is determined with regard to the 10-percent standard deduction; except that an individual described in section 141(d)(2) may elect (under regulations prescribed by the Secretary or his delegate)— " (A) to pay the tax shown in Table V of section 3(a) in lieu of the tax shown in Table IV of section 3(a), and " (B) to pay the tax shown in Table V of section 3(b) in lieu of the tax shown in Table IV of section 3(b). For purposes of this title, an election under the preceding sentence shall be treated as an election made under section 141(d)(2). "(4) For purposes of this subsection, determination of marital status shall be made under section 143.'' ^2) AMENDMENT OF SECTION 6014.—Section 6014(a) (relating to income tax return—tax not computed by taxpayer) is amended by adding at the end thereof the following new sentence: " I n the ease of a married individual filing a separate return and electing the benefits of this subsection, neither Table V in section 3(a) nor Table V in section 3(b) shall apply." (3) TECHNICAL AMENDMENTS.—

Ante, p. 111.

26 USC 21.

26 USC 3402.

(A) Subsection (a) of section 4 (relating to rules for optional tax) is amended by striking out "table" and inserting in lieu thereof "tables". ^g) Section 4(f) (relating to cross references) is amended by adding at the end thereof the following new paragraph: "(4) For nonapplicability of Table V in section 3(a) and Table V in section 3(b) in case where tax is not computed by taxpayer, see section 6014(a)." (c) EFFECTIVE D A I T S. — E x c e p t for purposes of section 21 of the I n t e r n a l Revenue ("ode of 1954 ( r e l a t i n g to eli'ect of c h a n g e s in r a t e s during a tax a b l e year), the amendments m a d e by t h i s section s h a l l a p p l y to tax a b l e year s b e g i n n i n g after December 31, 1963. SEC. 302. INCOME TAX COLLECTED AT SOURCE. (a) PERCENTA(}E M E T H O D OF W I T H H O L D I N G. — S u b s e c t i o n (a) of section 3402 ( r e l a t i n g to rexiuirement of w i t h h o l d i n g) is amended by striking o u t "18 p e r c e n t " and inserting in lieu thereof "'14 p e r c e n t ". (b) W A G E B R A C K E T W I T H H O L D I N G. — Paragraph (1) of section 3402(c) ( r e l a t i n g to w a g e b r a c k e t w i t h h o l d i n g) is amended to read as f o l l o w s: " (1) A t the election of the e m p l o y e r w i t h respect to any employee, the e m p l o y e r shall d e d u c t and w i t h h o l d upon the w a g e s p a i d to such employee a tax determined in accordance w i t h the

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