Page:United States Statutes at Large Volume 95.djvu/209

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 183

"(1) APPLICATION WITH OTHER CREDITS.—In determining any

credit allowed under subpart A of part IV of subchapter A of chapter 1 (other than under sections 31, 39, and 43), the tax imposed by chapter 1 shall (before any other reductions) be reduced by the credit allowed under subsection (a). "(2) CREDIT TREATED AS SUBPART A CREDIT.—For purposes of this title, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart A of part IV of subchapter A of chapter 1. "(c) TABLES TO REFLECT CREDIT.— "(1) SECTION 3 TABLES.—The tables prescribed by the Secretary

under section 3 shall reflect the credit allowed under subsection (a). "(2) OTHER TABLES.—In order to reflect the amount of the credit under subsection (a) for different levels of tax or taxable income, the Secretary may— "(A) modify the tables under section 1, or "(B) prescribe such other tables as he determines necessary." (2) CONFORMING AMENDMENTS.—

(A) The table of sections for subchapter B of chapter 65 is amended by striking out the item relating to section 6428 and inserting in lieu thereof the following new item: "Sec. 6428. 1981 rate reduction tax credit."

(B) Paragraph (1) of section 3(a) (relating to imposition of 26 USC 3. tax table tax) is amended by inserting "and which shall be in such form as he determines appropriate" after "Secretary". (C) Subsection (a) of section 3 (relating to tax tables for individuals) is amended by adding at the end thereof the following new paragraph: "(5) SECTION MAY BE APPLIED ON THE BASIS OF TAXABLE

INCOME.—The Secretary may provide that this section shall be applied for any taxable year on the basis of taxable income in lieu of tax table income." (c) REPEAL OF MAXIMUM TAX ON PERSONAL SERVICE INCOME.—

(1) IN GENERAL.—Part VI of subchapter Q of chapter 1 (relating Repeal. to maximum rate on personal service income) is repealed. ^6 USC 1348. (2) CONFORMING AMENDMENTS.—

(A) Paragraph (1) of section 3(b) (relating to tax tables for individuals) is amended to read as follows: "(1) an individual to whom section 1301 (relating to income averaging) applies for the taxable year,". (B) Subsection (b) of section 1304 (relating to special rules 26 USC 1304. for income averaging) is amended— (i) by inserting "and" at the end of paragraph (1), (ii) by striking out ", and" at the end of paragraph (2) and inserting in lieu thereof a period, and (iii) by striking out paragraph (3). (C) The table of parts for subchapter Q of chapter 1 is amended by striking out the item relating to part VI. (d) CONFORMING AMENDMENTS.—

(1) ALTERNATIVE MINIMUM TAX.—Paragraph (1) of section 55(a)

(relating to alternative minimum tax) is amended— (A) by striking out all that follows "$60,000" in subparagraph (B) and inserting in lieu thereof ", exceeds", and (B) by striking out subparagraph (C).

89-194 O—82

14:QL3

26 USC 55.

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