69 1 lowing calendar year, made in the light of the need for the 2 estimated income in relationship to the estimated outgo of 3 the Trust Funds during such year." 4 (2) Section 1817 (b) of such Act is amended by insert5 ing before the last sentence the following new sentence: 6 "The report shall further include a recommendation as to 7 the appropriateness of the tax rates in sections 1401 (b), 8 3101 (b), and 3111 (b) of the Internal Revenue Code of 9 1954 which will be in effect for the following calendar year 10 made in the light of the need for the estimated income in 11 relationship to the estimated outgo of the Trust Fund during 12 such year." 13 CHANGES IN TAX SCHEDULES 14 SEC. 124. (a) (1) Section 1401 (a) of the Internal Revenue Code of 1954 (relating to rate of tax on self employment income for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (2), (3), and (4) and inserting in lieu thereof the follow ing: "(2) in the case of any taxable year beginning after December 31, 1968, and before January 1, 1975, the tax shall be equal to 6.3 percent of the amount of the self-employment income for such taxable year; and "(3) in the case of any taxable year beginning 1 2 3 4 5 70 after December 31, 1974, the tax shall be equal to 7.0 percent of the amount of the self-employment income for such taxable year." (2) Section 3101 (a) of such Code (relating to rate of tax on employees for purposes of old-age, survivors, and 6 disability insurance) is amended by striking out paragraphs 7 (2), (3), and (4) and inserting in lieu thereof the follow 8 ing: 9 10 11 12 13 14 15 16 17 18 "(2) with respect to wages received during the calendar years 1969, 1970, 1971, 1972, 1973, and 1974, the rate shall be 4.2 percent; "(3) with respect to wages received during the calendar years 1975, 1976, 1977, 1978, and 1979, the rate shall be 5.0 percent; and "(4) with respect to wages received after Decem ber 31, 1979, the rate shall be 5.5 percent." (3) Section 3111 (a) of such Code (relating to rate of tax on employers for purposes of old-age, survivors, and 19 disability insurance) is amended by striking out paragraphs 20 (2), (3), and (4) and inserting in lieu thereof the 21 following: 22 23 24 25 "(2) with respect to wages paid during the calendar years 1969, 1970, 1971, 1972, 1973, and 1974, the rate shall be 4.2 percent; "(3) with respect to wages paid during the cal 71 1 2 3 4 5 6 endar years 1975, 1976, 1977, 1978, and 1979, the rate shall be 5.0 percent; and "(4) with respect to wages paid after December 31, 1979, the rate shall be 5.5 percent.' (b) (1) Section 1401 (b) of such Code (relating to rate of tax on self-employment income for purposes of hos7 pital insurance) is amended by striking out paragraphs (1) 8 through (5) and inserting in lieu thereof the following: 9 11 "(1) in the case of any taxable year beginning 10 after December 31, 1967, and before January 1, 1971, the tax shall be equal to 0.6 percent of the amount of the self-employment income for such taxable year; and 12 13 14 15 16 17 "(2) in the case of any taxable year beginning after December 31, 1970, the tax shall be equal to 1.0 percent of the amount of the self-employment income for such taxable year. (2) Section 3101 (b) of such Code (relating to rate 18 of tax on employees for purposes of hospital insurance) is 19 amended by striking out paragraphs (1) through (5) and 20 inserting in lieu thereof the following: "(1) with respect to wages received during the calendar years 1968, 1969, and 1970, the rate shall be 0.6 percent; and "(2) with respect to wages received after December 31, 1970, the rate shall be 1.0 percent." 72 1 (3) Section 3111 (b) of such Code (relating to rate 2 of tax on employers for purposes of hospital insurance) is 3 amended by striking out paragraphs (1) through (5) and 4 inserting in lieu thereof the following: 5 6 7 8 9 10 11 "(1) with respect to wages paid during the calendar years 1968, 1969, and 1970, the rate shall be 0.6 percent; and "(2) with respect to wages paid after December 31, 1970, the rate shall be 1.0 percent." (c) The amendments made by subsections (a) (1) and (b) (1) shall apply only with respect to taxable years be12 ginning after December 31, 1970. The remaining amend13 ments made by this section shall apply only with respect to 14 remuneration paid after December 31, 1970. 15 16 ALLOCATION TO DISABILITY INSURANCE TRUST FUND SEC. 125. (a) Section 201 (b) (1) of the Social Secu 17 rity Act is amended (1) by striking out "and (D)" and inserting in lieu thereof "(D)"; and (2) by striking out "after December 31, 1969, and so reported," and inserting in lieu thereof the following: "after December 31, 1969, and before Janu ary 1, 1971, and so reported, (E) 0.90 of 1 per centum 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 222 of the wages (as so defined) paid after December 31, 1970, and before January 1, 1975, and so reported, (F) 1.05 per centum of the wages (as so defined) paid after December 31, 1974, and before January 1, 1980, and so reported, and (G) 1.15 per centum of the wages (as so defined) paid after December 31, 1979, and so reported,". (b) Section 201 (b) (2) of such Act is amended— (1) by striking out "and (D)" and inserting in lieu thereof "(D)"; and (2) by inserting after "December 31, 1969," the following: "and before January 1, 1971, (E) 0.675 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1970, and before January 1, 1975, (F) 0.7875 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1974, and before January 1, 1980, and (G) 0.8625 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1979,". |