Page:United States Statutes at Large Volume 80 Part 1.djvu/1114

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PUBLIC LAW 89-699-OCT. 30, 1966

[80 STAT.

(b) All recertifications required by reason of the amendments made by this title shall be made by the Railroad Retirement Board without application therefor. TITLE III—AMENDMENTS TO THE RAILROAD RETIREMENT T A X ACT C H A N G E S IN" TAX RATES 79 Stat. 861. 26 USC 3201.

26 USC 3211.

79 Stat. 862. 26 USC 3221.

SEC. 301. (a) Section 3201 of the Internal Revenue Code of 1954 (relating to rate of tax on employees under the Railroad Retirement Tax Act) is amended by striking out " 6 % percent'' from subdivision " (3) " and inserting in lieu thereof "7 percent"; by striking out "7 percent" from subdivision "(4')" and inserting in lieu thereof "7i/4 percent"; and by striking out "714 percent" from subdivision " (5) " and inserting in lieu thereof "71/^ percent". (b) Section 3211 of such Code (relating to rate of tax on employee representatives under the Railroad Retirement Tax Act) is amended by striking out "131/^ percent" from subdivision " (3) " and inserting in lieu thereof "14 percent"; by striking out "14 percent" from subdivision " (4) " and inserting in lieu thereof "141/^ percent"; and by striking out "141/^ percent" from subdivision " (5) " and inserting in lieu thereof "15 percent". (c) Section 3221(a) of such Code (relating to rate of tax on employers under the Railroad Retirement Tax Act) is amended by striking out " 6 % percent" from subdivision " (3) " and inserting in lieu thereof "7 percent" j by striking out "7 percent" from subdivision " (4) " and inserting m lieu thereof " 7 ^ percent"; and by striking out "71/4 percent" from subdivision " (5) " and inserting in lieu thereof "71/^ percent". SUPPLEMENTAL TAXES

(d) Section 3211 of such Code is further amended by inserting " (a) " after "SEC. 3211" and by adding at the end thereof the following new subsection: " (b) I n addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to 2 cents for each man-hour for which compensation is paid to him for services rendered as an employee representative." (e) Section 3221 of such Code is further amended by adding at the end thereof the following new subsection: "(c) 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 2 cents for each man-hour, for which compensation is paid. With respect to daily, weekly, or monthly rates of compensation such tax shall apply to the number of hours comprehended in the rate together with the number of overtime hours for which compensation in addition to the daily, weekly, or monthly rate is paid. With respect to compensation paid on a mileage or piecework basis such tax shall apply to the number of hours constituting the hourly equivalent of the compensation paid. "Each employer of employees whose supplemental annuities are reduced pursuant to section 3(j)(2) of the Railroad Retirement Act of Ante, p. 1073. 5^937 shall be allowed as a credit against the tax imposed by this subsection an amount equivalent in each month to the aggregate amount of reductions in supplemental annuities accruing in such month to employees of such employer. If the credit so allowed to such an employer for any month exceeds the tax liability of such employer accru-

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