Page:United States Statutes at Large Volume 97.djvu/452

 97 STAT. 420 PUBLIC LAW 98-76—AUG. 12, 1983 PART II—OTHER CHANGES AFFECTING TIER 2 TAXES SEC. 221. INCREASES IN TIER 2 EMPLOYEE TAX; ANNUALIZATION OF TAX BASE. 26 USC 3201. Section 3201 of the Internal Revenue Code of 1954 (relating to rate of tax on employees) is amended to read as follows: "SEC. 3201. RATE OF TAX. "(a) TIER 1 TAX.—In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the following percentage of the compensation received during any calendar year by such employee for services rendered by such employee: "In the case of compensation received during: The rate shall be: 1985 7.05 1986 or 1987 7.15 1988 or 1989 7.51 1990 or thereafter 7.65. "(b) TIER 2 TAX.—In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the following percentage of the compensation received during any calendar year by such employee for services rendered by such employee: "In the case of compensation received during: The rate shall be: 1985 3.50 1986 or thereafter 4.25. "(c) CROSS REFERENCE. — "For application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2)." SEC. 222. INCREASES IN TIER 2 EMPLOYER TAX; ANNUALIZATION OF TAX BASE. (a) IN GENERAL.— Subsections (a) and (b) of section 3221 of the 26 USC 3221. Internal Revenue Code of 1954 (relating to rate of tax on employers) are amended to read as follows: "(a) TIER 1 TAX. —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 the following percentage of compensation paid during any calendar year by such employer for services rendered to such employer: "In the case of compensation paid during: The rate shall be: 1985 7.05 1986 or 1987 7.15 1988 or 1989 7.51 1990 or thereafter 7.65. "(b) TIER 2 TAX. —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 the following percentage of compensation paid during any calendar year by such employer for services rendered to such employer: "In the case of compensation paid during: The rate shall be: 1985 13.75 1986 or thereafter 14.75". (b) CROSS REFERENCE. —Section 3221 of such Code is amended by adding at the end thereof the following new subsection:

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