1 or wife filing a separate return if the tax or the other

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spouse is determined with regard to the 10-percent standard deduction; except that an individual described

in section 141 (d) (2) may elect (under regulations prescribed by the Secretary or his delegate)

"(A) to pay the tax shown in Table V of section 3 (a) in lieu of the tax shown in Table IV of section 3 (a), and

"(B) to pay the tax shown in Table V of section 3 (b) in lieu of the tax shown in Table IV of section 3 (b).

For purposes of this title, an election under the preceding sentence shall be treated as an election made under section 141 (d) (2).

"(4) For purposes of this subsection, determination of marital status shall be made under section 143." (2) AMENDMENT OF SECTION 6014.-Section 6014 (a) (relating to income tax return-tax not computed by taxpayer) is amended by adding at the end 20 thereof the following new sentence: "In the case of a

married individual filing a separate return and electing

the benefits of this subsection, neither Table V in section

3(a) nor Table V in section 3 (b) shall apply."

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(3) TECHNICAL AMENDMENTS.

(A) Subsection (a) of section 4 (relating to rules for optional tax) is amended by striking out

"table" and inserting in lieu thereof "tables".

(B) Section 4 (f) (relating to cross references) is amended by adding at the end thereof the follow

ing new paragraph:

"(4) For nonapplicability of Table V in section 3(a) and Table V in section 3(b) in case where tax is not computed by taxpayer, see section 6014(a).”

(c) EFFECTIVE DATE.-Except for purposes of section

9 21 of the Internal Revenue Code of 1954 (relating to effect 10 of changes in rates during a taxable year), the amendments 11 made by this section shall apply to taxable years beginning 12 after December 31, 1963.

13 SEC. 302. INCOME TAX COLLECTED AT SOURCE.

14 (a) PERCENTAGE METHOD OF WITHHOLDING. Sub15 section (a) of section 3402 (relating to requirement of with16 holding) is amended to read as follows:

17 "(a) REQUIREMENT OF WITHHOLDING. Every em18 ployer making payment of wages shall deduet and withhold 19 upon such wages (except as provided in subsection (j) a 20 tax equal to the following percentage of the amount by 21 which the wages exceed the number of withholding exemp

1 tions claimed, multiplied by the amount of one such exemp

2 tion as shown in subsection (b)(1):

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"(1) 15 percent in the ease of wages paid during

the calendar year 1964, and

"(2) 14 percent in the ease of wages paid after December 31, 1964."

(a) PERCENTAGE METHOD OF WITHHOLDING.-Sub

8 section (a) of section 3402 (relating to requirement of with9 holding) is amended by striking out "18 percent" and insert10 ing in lieu thereof "14 percent”.

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(b) WAGE BRACKET WITHHOLDING. Paragraph (1) 12 of section 3402(e) (relating to wage bracket withholding) 13 is amended to read as follows:

“(1)(A) WAGES PAID DURING CALENDAR YEAR 1904. At the election of the employer with respect to any employee, the employer shall deduct and withhold

upon the wages paid to such employee during the ealendar year 1964 a tax determined in accordance with the following tables, which shall be in lieu of the tax

required to be deducted and withheld under subsection

(a):