Page:United States Statutes at Large Volume 91.djvu/1574

 91 STAT. 1540

26 USC 3101, 3111-

PUBLIC LAW 95-216—DEC. 20, 1977 ment to taxes or contributions for similar purposes under the social security system of such foreign country.". (2) Sections 3101 and 3111 of such Code are each amended by adding at the end thereof the following new subsection: "(c) RELIEF FROM TAXES IN CASES COVERED BY CERTAIN INTERNATIONAL AGREEMENTS.—During any period in which there is in effect an

Ante, p. 1538.

26 USC 6051. Supra. 26 USC 1401 note.

agreement entered into pursuant to section 233 of the Social Security Act with any foreign country, wages received by or paid to an individual shall be exempt from the taxes imposed by this section to the extent that such wages are subject under such agreement to taxes or contributions for similar purposes under the social security system of such foreign country.". (3) Section 6051(a) of such Code is amended by adding at the end thereof the following new sentence: "The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111.". (4) Notwithstanding any other provision of law, taxes paid by any individual to any foreign country with respect to any period of employment or self-employment which is covered under the social security system of such foreign country in accordance with the terms of an agreement entered into pursuant to section 233 of the Social Security Act shall not, under the income tax laws of the United States, be deductible by, or creditable against the income tax of, any such individual. MODIFICATION

OF AGREEMENT W I T H ILLINOIS TO PROVIDE FOR CERTAIN POLICEMEN AND FIREMEN

COVERAGE

42 use418 note. SEC. 318. (a) Notwithstanding the provisions of subsection (d)(5) 42 USC 418. (A) of section 218 of the Social Security Act and the references thereto in subsections (d)(1) and (d)(3) of such section 218, the agreement with the State of Illinois heretofore entered into pursuant to such section 218 may, at any time prior to January 1, 1979, be modified pursuant to subsection (c)(4) of such section 218 so as to apply to services performed in policemen's or firemen's positions covered by the Illinois Municipal Retirement Fund on the date of the enactment of this Act if the State of Illinois has at any time prior to the date of the enactment of this Act paid to the Secretary of the Treasury, with respect to any of the services performed in such positions, the sums prescribed pursuant to subsection (e)(1) of such section 218. For purposes of this section, a retirement system which covers positions of policemen or firemen shall, if the State of Illinois so desires, be deemed to be a separate retirement system with respect to the positions of such policemen or firemen, as the case may be. (b) Notwithstanding the provisions of subsection (f) of section 218 of the Social Security Act, any modification in the agreement with the State of Illinois under subsection (a) of this section, to the extent ... that it involves services performed by a policeman or fireman in positions covered under the Illinois Municipal Retirement Fund, shall be made effective with respect to— (1) all services performed by policemen or firemen, in positions to which the modification relates, on or after the date of the enactment of this Act; and (2) all services performed by such individuals in such positions , before such date of enactment with respect to which the State of Illinois has paid to the Secretary of the Treasury the sums pre-

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