Page:United States Statutes at Large Volume 97.djvu/120

 97 STAT. 88 PUBLIC LAW 98-21 —APR. 20, 1983 26 USC 3111. (2) EMPLOYER TAX. — Subsection (a) of section 3111 of such Code is amended by striking out paragraphs (1) through (7) and inserting in lieu thereof the following: "In cases of wages The rate paid during: shall be: 1984, 1985, 1986, or 1987 5.7 percent 1988 or 1989 6.06 percent 1990 or thereafter 6.2 percent." 26 USC 3101 (3) EFFECTIVE DATE.— The amendments made by this subsec- ^°^- tion shall apply to remuneration paid after December 31, 1983. (b) 1984 EMPLOYEE TAX CREDIT. — (1) IN GENERAL. — Chapter 25 of such Code is amended by adding at the end thereof the following new section: 26 USC 3510. "SEC. 3510. CREDIT FOR INCREASED SOCIAL SECURITY EMPLOYEE TAXES AND RAILROAD RETIREMENT TIER 1 EMPLOYEE TAXES IM- POSED DURING 1984. "(a) GENERAL RULE.—There shall be allowed as a credit against the tax imposed by section 3101(a) on wages received during 1984 an amount equal to %o of 1 percent of the wages so received. "(b) TIME CREDIT ALLOWED.—The credit under subsection (a) shall be taken into account in determining the simount of the tax deducted under section 3102(a). "(c) WAGES.— For purposes of this section, the term 'wages' has the meaning given to such term by section 3121(a). "(d) APPLICATION TO AGREEMENTS UNDER SECTION 218 OF THE 42 USC 418. SOCIAL SECURITY ACT. —For purposes of determining amounts equiv- alent to the tax imposed by section 3101(a) with respect to remu- neration which— "(1) is covered by an agreement under section 218 of the Social Security Act, and "(2) is paid during 1984, the credit allowed by subsection (a) shall be taken into account. A similar rule shall also apply in the case of an agreement under section 3121(1). "(e) CREDIT AGAINST RAILROAD RETIREMENT EMPLOYEE AND EM- PLOYEE REPRESENTATIVE TAXES.— "(1) IN GENERAL. — There shall be allowed as a credit against the taxes imposed by sections 3201(a) and 3211(a) on compensa- tion paid during 1984 and subject to such taxes at rates deter- mined by reference to section 3101 an amount equal to %o of 1 percent of such compensation. "(2) TIME CREDIT ALLOWED.— The credit under paragraph (1) shall be taken into account in determining the amount of the tax deducted under section 3202(a) (or the amount of the tax under section 3211(a)). "(3) COMPENSATION. —For purposes of this subsection, the term 'compensation' has the meaning given to such term by section 3231(e). "(f) COORDINATION WITH SECTION 6413(C). — For purposes of subsec- tion (c) of section 6413, in determining the amount of the tax imposed by section 3101 or 3201, any credit allowed by this section shall be taken into account." (2) CLERICAL AMENDMENT.— The table of sections for chapter 25 of such Code is amended by adding at the end thereof the following new item:

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