Page:United States Statutes at Large Volume 95.djvu/373

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 347

"(i) the tax shown on the return for the taxable year, or "(ii) if no return was filed, the tax for such year. "(C) APPLICABLE PERCENTAGE.—For purposes of subpara-

graph (B), the applicable percentage shall be determined in accordance with the following table: "If the taxable year begins in: 1982 1983

The applicable percentage is: 65 75."

(b) CLERICAL AMENDMENT.—The heading of subsection (h) of section 6655 (relating to failure by corporations to pay estimated income tax) 26 USC 6655. is amended by striking out "AT LEAST 60 PERCENT" and inserting in lieu thereof "MINIMUM PERCENTAGE". (c) EFFECTIVE DATE.—The amendments made by this section shall ^6 USC 6655 note. apply to taxable years beginning after December 31, 1981.

Subtitle E—Financing of Railroad Retirement System SEC. 741. INCREASES IN EMPLOYER AND EMPLOYEE TAXES.

(a) TAX ON EMPLOYEES.—Section 3201 (relating to rate of tax on 26 USC 3201. employees) is amended by striking out all that precedes "the rate of the tax" and inserting in lieu thereof the following: "(a) In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to 2.0 percent of so much of the compensation paid in any calendar month to such employee for services rendered by him as is not in excess of an amount equal to one-twelfth of the current maximum annual taxable 'wages* as defined in section 3121 for any month. "(b) The rate of tax imposed by subsection (a) shall be increased by". (b) TAX ON EMPLOYEE REPRESENTATIVES.—Subsection (a) of section 3211 (relating to tax on employee representatives) is amended by 26 USC 3211. striking out "9.5" and inserting in lieu thereof "11.75", (c) TAX ON EMPLOYERS.—The first sentence of section 3221(a) 26 USC 3221. (relating to tax on employers) is amended by striking out "9.5" and inserting in lieu thereof "11.75". (d) CONFORMING AMENDMENTS.—

(1) The last sentence of section 230(c) of the Social Security Act is amended— (A) by inserting "employee and" before "employer", (B) by striking out "section 3221(a)" and inserting in lieu thereof "sections 3201(a) and 3221(a)", and (C) by striking out "9.5" and inserting in lieu thereof "11.75". (2) Paragraph (1) of section 3231(e) (defining compensation) is amended by striking out "(iii)" and all that follows through "(iv)" and inserting in lieu thereof "or (iii)". (e) EFFECTIVE DATE.—The amendments made by this section shall apply to compensation paid for services rendered after September 30, 1981.

42 USC 430.

26 USC 3231. 26 USC 3201 ^°^-

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