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CH. 1T (added 1962)—Continued

tion, sale, or other disposition of such written notice of allocation) by any person shall be made under the Internal Revenue Code of 1954 without regard to subchapter T of chapter 1 of such Code."

(Id., § 17(c), 76 Stat. 1051-1052.) CHAPTER 2-TAX ON SELF-EMPLOYMENT INCOME (68A Stat.

353–355): NOTE: The table of sections for Chapter 2 reads as follows (68A Stat. 353):

“Sec. 1401. Rate of tax.
“Sec, 1402. Definitions.

“Sec. 1403. Miscellaneous provisions."

This table has not been amended. SEC. 1401. RATE OF TAX (68A Stat. 353): (4), (5) ----- Sept. 1, 1954, H.R. 9366, P.L. 83–761, § 208(a), 68 Stat. 1093: (deleted,

Amended Sec. 1401 320 (imposing tax on self-employment income) by added)

striking out paragraph (4) and inserting in lieu thereof the following new paragraphs (4) and (5):

(4) in the case of any taxable year beginning after December 31, 1969, and before January 1, 1975, the tax shall be equal to 5% percent of the amount of the self-employment income for such taxable year;

"(5) in the case of any taxable year beginning after December 31, 1974, the tax shall be equal to 6 percent of the amount of the

self-employment income for such taxable year.”
Applicability:

Indicated by the terms of the amendment.
In full.-- Aug. 1, 1956, H.R. 7225, P.L. 84-880, $ 202(a), 70 Stat. 845:

Amended Sec. 1401 (as amended by P.L. 83–761, 8 208(a)) to read
as follows:
, "SEC. 1401. RATE OF TAX.

"In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

"(1) in the case of any taxable year beginning after December 31, 1956, and before January 1, 1960, the tax shall be equal to 3% percent of the amount of the self-employment income for such taxable year;

"(2) in the case of any taxable year beginning after December 31, 1959, and before January 1, 1965, the tax shall be equal to 46 percent of the amount of the self-employment income for such taxable year;

In tem.

Aug1, 1950, EN , PL. By pro 10 Senty se to read

320 Section 1401 originally read as follows (68A Stat. 353): “SEC. 1401. RATE OF TAX.

"In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

"(1) in the case of any taxable year beginning before January 1, 1960, the tax shall be equal to 3 percent of the amount of the self-employment income for such taxable year;

(2) in the case of any taxable year beginning after December 31, 1959, and before January 1, 1965, the tax shall be equal to 374 percent of the amount of the self-employment income for such taxable year;

“(3) in the case of any taxable year beginning after December 31, 1964, and before January 1, 1970, the tax shall be equal to 442 percent of the amount of the self-employment income for such taxable year;

“(4) in the case of any taxable year beginning after December 31, 1969, the tax shall be equal to 4% percent of the amount of the self-employment income for such taxable year.”

SEC. 1401 (revised 1956)— Continued (4), (5)—Continued

"(3) in the case of any taxable year beginning after December 31, 1964, and before January 1, 1970, the tax shall be equal to 4% percent of the amount of the self-employment income for such taxable year;

"(4) in the case of any taxable year beginning after December 31, 1969, and before January 1, 1975, the tax shall be equal to 56 percent of the amount of the self-employment income for such taxable year; and

“(5) in the case of any taxable year beginning after December 31, 1974, the tax shall be equal to 6%6 percent of the amount of

the self-employment income for such taxable year.''
Applicability:
Taxable years beginning after December 31, 1956.

(Id., § 202(d), 70 Stat. 846.)
In full. ------ Aug. 28, 1958, H.R. 13549, P.L. 85–840, § 401(a), 72 Stat. 1041:

Amended Sec. 1401 (as previously amended) to read as follows: "SEC. 1401. RATE OF TAX.

"In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

"(1) in the case of any taxable year beginning after December 31, 1958, and before January 1, 1960, the tax shall be equal to 334 percent of the amount of the self-employment income for such taxable year;

"(2) in the case of any taxable year beginning after December 31, 1959, and before January 1, 1963, the tax shall be equal to 4% percent of the amount of the self-employment income for such taxable year;

"(3) in the case of any taxable year beginning after December 31, 1962, and before January 1, 1966, the tax shall be equal to 5% percent of the amount of the self-employment income for such taxable year;

(4) in the case of any taxable year beginning after December 31, 1965, and before January 1, 1969, the tax shall be equal to 6 percent of the amount of the self-employment income for such taxable year; and

(5) in the case of any taxable year beginning after December 31, 1968, the tax shall be equal to 6% percent of the amount of

the self-employment income for such taxable year."
Applicability:
Taxable years beginning after December 31, 1958.

(Id., § 401(d), 72 Stat. 1042.)

June 30, 1961, H.R. 6027, P.L. 87–64, § 201(a), 75 Stat. 140: in full)

Amended Sec. 1401 (as previously amended) to read as follows: "SEC. 1401. RATE OF TAX.

"In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

"(1) in the case of any taxable year beginning after December 31, 1961, and before January 1, 1963, the tax shall be equal to 4.7 percent of the amount of the self-employment income for such taxable year;

“(2) in the case of any taxable year beginning after December 31, 1962, and before January 1, 1966, the tax shall be equal

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SEC. 1401 (revised 1961)— Continued

to 5.4 percent of the amount of the self-employment income for such taxable year;

"(3) in the case of any taxable year beginning after December 31, 1965, and before January 1, 1968, the tax shall be equal to 6.2 percent of the amount of the self-employment income for such taxable year; and

“(4) in the case of any taxable year beginning after December 31, 1967, the tax shall be equal to 6.9 percent of the amount of

the self-employment income for such taxable year.”
Applicability:
Taxable years beginning after December 31, 1961.

(Id., $ 201(d), 75 Stat. 141.) Do -------

July 30, 1965, H.R. 6675, P.L. 89–97, § 321(a), 79 Stat. 394–395: (in full)

Amended Sec. 1401 (amended as set forth above) to read as follows: "SEC. 1401. RATE OF TAX.

“(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE.—In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

“(1) in the case of any taxable year beginning after December 31, 1965, and before January 1, 1967, the tax shall be equal to 5.8 percent of the amount of the self-employement income for such taxable year;

"(2) in the case of any taxable year beginning after December 31, 1966, and before January 1, 1969, the tax shall be equal to 5.9 percent of the amount of the self-employment income for such taxable year;

"(3) in the case of any taxable year beginning after December 31, 1968, and before January 1, 1973, the tax shall be equal to 6.6 percent of the amount of the self-employment income for such taxable year; and

"(4) in the case of any taxable year beginning after December 31, 1972, the tax shall be equal to 7.0 percent of the amount of the self-employment income for such taxable year.

“(b) HOSPITAL INSURANCE.—In addition to the tax imposed by the preceding subsection, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows:

"(1) in the case of any taxable year beginning after December 31, 1965, and before January 1, 1967, the tax shall be equal to 0.35 percent of the amount of the self-employment income for such taxable year;

"(2) in the case of any taxable year beginning after December 31, 1966, and before January 1, 1973, the tax shall be equal to 0.50 percent of the amount of the self-employment income for such taxable year

"(3) in the case of any taxable year beginning after December 31, 1972, and before January 1, 1976, the tax shall be equal to 0.55 percent of the amount of the self-employment income for such taxable year;

“(4) in the case of any taxable year beginning after December 31, 1975, and before January 1, 1980, the tax shall be equal to 0.60 percent of the amount of the self-employment income for such taxable year;

"(5) in the case of any taxable year beginning after December 31, 1979, and before January 1, 1987, the tax shall be equal to

SEC. 1401 (revised 1965)— Continued

0.70 percent of the amount of the self-employment income for

0.70 paxable yease of any equal touch taxabletion, the not apply

; and ny taxable yeato percent of."

For the tranvalent to the Security Act

“(6) in the case of any taxable year beginning after December 31, 1986, the tax shall be equal to 0.80 percent of the amount of

the self-employment income for such taxable year. For purposes of the tax imposed by this subsection, the exclusion of

employee representatives by section 1402(c)(3) shall not apply.” Appplicability:

Only with respect to taxable years beginning after December 31, 1965.

(Id., § 321(d), 79 Stat. 396.) For the transfer to the Federal Hospital Insurance Trust Fund of amounts equivalent to the taxes imposed by section 1401(b), see section 1817(a) of the Social Security Act quoted in the ANCILLARY

PROVISIONS below. (b)--

July 30, 1965, H.R. 6675, P.L. 89-97, § 111(c)(4), 79 Stat. 342: (sen'ce

Amended Sec. 1401(b) (as amended by P.L. 89-97 $ 321(a)) by deleted) striking out the last sentence.

Applicability:

Calendar year 1966 or any subsequent calendar year "but only if the requirement in paragraph (2) (see n. 321] has been met with respect to such calendar year." ;

(Id. § 111(e) 79 Stat. 343.) 321 ANCILLARY PROVISIONS: July 30, 1965, H.R. 6675, P.L. 89–97, § 102(a), 79 Stat. 299:

Amended the Social Security Act by adding a new "TITLE XVIII-HEALTH INSURANCE FOR THE AGED”, containing the following provisions:

“FEDERAL HOSPITAL INSURANCE TRUST FUND

"SEC. 1817. (a) There is hereby created on the books of the Treasury of the United States a trust fund to be known as the 'Federal Hospital Insurance Trust Fund' (hereinafter in this section referred to as the 'Trust Fund'). The Trust Fund shall consist of such amounts as may be deposited in, or appropriated to, such fund as provided in this part. There are hereby appropriated to the Trust Fund

321 Subsection (e) of section 111 of P.L. 89-97 reads as follows:

"(e)(1) The amendments made by the preceding provisions of this section shall apply to the calendar year 1966 or to any subsequent calendar year, but only if the requirement in paragraph (2) has been met with respect so such calendar year.

(2) The requirement referred to in paragraph (1) shall be deemed to have been met with respect to any calendar year if, as of the October 1 immediately preceding such calendar year, the Railroad Retirement Tax Act provides that the maximum amount of monthly compensation taxable under such Act during all months of such calendar year will be an amount equal to one-twelfth of the maximum wages which the Federal Insurance Contributions Act provides may be counted for such calendar year.”

The amendments made by the "preceding provisions" of section 111 of P.L. 89–97 were as follows:

Subsection (a) amended the first sentence of section 1874(a) of the Social Security Act.

Subsection (b)(1) amended in full section 21 of the Railroad Retirment Act of 1937 (as added by section 105 of P.L. 89-97).

Subsection (b)(2) amended section 5(k)(2) of the Social Security Act.
Subsection (c) amended the following provisions of the 1954 Code:

(1) Sec. 3201.
(2) Sec. 3211.
(3) Sec. 3221(b).
(4) Sec. 1401(b) (the above amendment).
(5) Sec. 3101(b).
(6) Sec. 3111(b).

SEC. 1401 (revised 1965)— Continued ANCILLARY PROVISIONS (P.L. 89–97, § 102(a))—Continued for the fiscal year ending June 30, 1966, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of —

"(1) the taxes imposed by sections 3101(b) and 3111(b) of the Internal Revenue Code of 1954 with respect to wages reported to the Secretary of the Treasury or his delegate pursuant to subtitle F of such Code after December 31, 1965, as determined by the Secretary of the Treasury by applying the applicable rates of tax under such sections to such wages, which wages shall be certified by the Secretary of Health, Education, and Welfare on the basis of records of wages established and maintained by the Secretary of Health, Education, and Welfare in accordance with such reports; and

“(2) the taxes imposed by section 1401(b) of the Internal Revenue Code of 1954 with respect to self-employment income reported to the Secretary of the Treasury or his delegate on tax returns under subtitle F of such Code, as determined by the Secretary of the Treasury by applying the applicable rate of tax under such section to such self-employment income, which self-employment income shall be certified by the Secretary of Health, Education, and Welfare on the basis of records of self-employment established and maintained by the Secre

tary of Health, Education, and Welfare in accordance with such returns. The amounts appropriated by the preceding sentence shall be transferred from time to time from the general fund in the Treasury to the Trust Fund, such amounts to be determined on the basis of estimates by the Secretary of the Treasury of the taxes, specified in the preceding sentence, paid to or deposited into the Treasury; and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than the taxes specified in such sentence. * * *. July 30, 1965, H.R. 6675, P.L. 89–97, § 331(b)(1), 79 Stat. 402:

"(b) In the case of a certificate or supplemental certificate filed pursuant to section 1402(e)(5) of the Internal Revenue Code of 1954, as amended by subsection (a)" p. 530 below)—the Internal Revenue

(1) for purposes of computing interest, the due date for the payment of the tax under section 1401 of such Code which is due for any taxable year ending before January 1, 1966, solely by reason of the filing of a certificate under such section 1402(e)(5) shall be April 15, 1967;”.

See n. 336, p. 530 below, and ANCILLARY PROVISIONS under section 6601, p. 1115 below. SEC. 1402. DEFINITIONS (68A Stat. 353–355): (a)(1)------ Sept. 1, 1954, H.R. 9366, P.L. 83–761, § 201(a)(1), 68 Stat. 1087: (in full)

Amended Sec. 1402(a)(1) (relating to definition of "net earnings from self-employment”), which read as follows (68A Stat. 353):

(1) there shall be excluded rentals from real estate (including personal property leased with the real estate) and deductions attributable thereto, unless such rentals are received in the course

of a trade or business as a real estate dealer;”, so as to read as follows:

"(1) there shall be excluded rentals from real estate and from personal property leased with the real estate (including such rentals paid in crop shares) together with the deductions attributable thereto, unless such rentals are received in the course of a trade or

business as a real estate dealer;"'.
Applicability:
Only taxable years ending after 1954.

(Id., § 201 (d), 68 Stat. 1089.)

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