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PRIOR PROVISIONS OF INTERNAL REVENUE CODE

OF 1954

EXCERPT FROM INTERNAL REVENUE CODE OF 1954

PRIOR TO 1954 AMENDMENT (P. L. 83–767) SEC. 3305. APPLICABILITY OF STATE LAW * * *

(e) BONNEVILLE POWER ADMINISTRATOR.—The legislature of any State may, with respect to service performed after December 31, 1945, and before January 1, 1955, by a laborer, mechanic, or workman, in connection with construction work or the operation and maintenance of electrical facilities, as an employee performing service for the Bonneville Power Administrator, require the Administrator, who for purposes of this subsection is designated an instrumentality of the United States, and any such employee, to make contributions to an unemployment fund under a State unemployment compensation law approved by the Secretary of Labor under section 3304 and to comply otherwise with such law. Such permission is subject to the conditions imposed by subsection (b) of this section upon permission to State legislatures to require contributions from instrumentalities of the United States. The Bonneville Power Administrator is authorized and directed to comply with the provisions of any applicable State unemployment compensation law on behalf of the United States as the employer of individuals whose service constitutes employment under such law by reason of this subsection. SEC. 3306. DEFINITIONS * * *

(1) CERTAIN EMPLOYEES OF BONNEVILLE POWER ADMINISTRATOR.For the purposes of this chapter

(1) The term "employment” shall include such service as is determined by the Bonneville Power Administrator to be performed after December 31, 1945, by a laborer, mechanic, or workman, in connection with construction work or the operation and maintenance of electrical facilities, as an employee performing service for the Administrator.

(2) The term "wages” means, with respect to service which constitutes employment by reason of this subsection, such amount of remuneration as is determined (subject to the provisions of

this section) by the Administrator to be paid for such service. The Administrator is authorized and directed to comply with the provisions of the internal revenue laws on behalf of the United States as the employer of individuals whose service constitutes employment by reason of this subsection.

CHAPTER 62-TIME AND PLACE FOR PAYING Tax SEC. 6152. INSTALLMENT PAYMENTS. (a) PRIVILEGE TO ELECT TO MAKE INSTALLMENT PAYMENTS.

(3) EMPLOYERS SUBJECT TO UNEMPLOYMENT TAX.-An employer subject to the tax imposed by section 3301 may elect to pay such tax in four equal installments. (b) DATES PRESCRIBED FOR PAYMENT OF INSTALLMENTS.

(1) FOUR INSTALLMENTS.-In any case (other than payment of estimated income tax) in which the tax may be paid in four in

stallments, the first installment shall be paid on the date prescribed for the payment of the tax, the second installment shall be paid on or before 3 months, the third installment on or before 6 months, and the fourth installment on or before 9 months, after such date.

(2) TWO INSTALLMENTS.-In any case (other than payment of estimated income tax) in which the tax may be paid in two installments, the first installment shall be paid on the date prescribed for the payment of the tax, and the second installment shall be paid on or before 3 months after such date.

EXCERPTS FROM INTERNAL REVENUE CODE OF 1954 PRIOR TO SOCIAL SECURITY AMENDMENTS OF 1956

CHAPTER 2-TAX ON SELF-EMPLOYMENT INCOME

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, 1980, the tax shall be equal to 3 percent of the amount of the selfemployment 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 384 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, and before January 1, 1975, the tax shall be equal to 544 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. SEC. 1402. DEFINITIONS. (a) NET EARNINGS FROM SELF-EMPLOYMENT.

(8) *** If the taxable year of a partner is different from that of the partnership, the distributive share which he is required to include in computing his net earnings from self-employment shall be based on the ordinary income or loss of the partnership for any taxable year of the partnership ending within or with his taxable year. In the case of any trade or business which is carried on by an individual who reports his income on a cash receipts and disbursements basis, and in which, if it were carried on exclusively by employees, the major portion of the services would constitute agricultural labor as defined in section 3121 (g), (i) if the gross income derived from such trade or business by

* * *

such individual is not more than $1,800, the net earnings, from self-employment derived by him therefrom may, at his option, be deemed to be 50 percent of such gross income in lieu of his net earnings from self-employment from such trade or business computed as provided under the preceding provisions of this subsection, or (ii) if the gross income derived from such trade or business by such individual is more than $1,800 and the net earnings from self-employment derived by him therefrom, as computed under the preceding provisions of this subsection, are less than $900, such net earnings may instead, at the option of such individual, be deemed to be $900. For the purpose of the preceding sentence, gross income derived from such trade or business shall mean the gross receipts from such trade or business reduced by the cost or other basis of property which was purchased and sold in carrying on such trade or business, adjusted (after such reduction) in accordance with the preceding provisions of this subsection.

CHAPTER 21–FEDERAL INSURANCE CONTRIBUTIONS ACT

SUBCHAPTER A-TAX ON EMPLOYEES

SEC. 3101. RATE OF TAX.

In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section 3121 (a)) received by him with respect to employment (as defined in section 3121 (b))

(1) with respect to wages received during the calendar years 1955 to 1959, both inclusive, the rate shall be 2 percent;

(2) with respect to wages received during the calendar years 1960 to 1964, both inclusive, the rate shall be 21/2 percent;

(3) with respect to wages received during the calendar years 1965 to 1969, both inclusive, the rate shall be 3 percent;

(4) with respect to wages received during the calendar years 1970 to 1974, both inclusive, the rate shall be 31/2 percent;

(5) with respect to wages received after December 31, 1974, the rate shall be 4 percent. 69

SUBCHAPTER B-TAX ON EMPLOYERS

*

SEC. 3111. RATE OF 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 percentages of the wages (as defined in section 3121 (a)) paid by him with respect to employment (as defined in section 3121 (b)

(1) with respect to wages paid during the calendar years 1955 to 1959, both inclusive, the rate shall be 2 percent;

(2) with respect to 'wages paid during the calendar years 1960 to 1964, both inclusive, the rate shall be 21,2 percent;

89 Under sec. 1400 of the Internal Revenue Code of 1939 the rate for years 1939 to 1949 was 1 percent; for the years 1950 to 1953, it was 142 percent; for 1954 it was 2 percent.

(3) with respect to wages paid during the calendar years 1965 to 1969, both inclusive, the rate shall be 3 percent;

(4) with respect to wages paid during the calendar years 1970 to 1974, both inclusive, the rate shall be 312 percent;

(5) with respect to wages paid after December 31, 1974, the rate shall be 4 percent. EXCERPTS FROM INTERNAL REVENUE CODE OF 1954

PRIOR TO SOCIAL SECURITY AMENDMENTS OF 1957

70

CHAPTER 2-TAX ON SELF-EMPLOYMENT INCOME

* *

SEC. 1402. DEFINITIONS.
(a) NET EARNINGS FROM SELF-EMPLOYMENT.
(8) an individual who is-

(A) a duly ordained, commissioned, or licensed minister of a church or a member of a religious order; and

(B) a citizen of the United States performing service described in subsection (c) (4) as an employee of an American employer (as defined in section 3121 (h)) or as a minister in a foreign country who has a congregation which is com

posed predominantly of citizens of the United States. 71 shall compute his net earnings from self-employment derived from the performance of service described in subsection (c) (4) without regard to section 911 (relating to earned income from sources without the United States) and section 931 (relating to income from sources within possessions of the United States).

EXCERPTS FROM INTERNAL REVENUE CODE OF 1954 PRIOR TO SOCIAL SECURITY AMENDMENTS OF 1958

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 338 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 448 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 478 percent of the amount of the self-employment income for such taxable year;

70 See footnote 69.

11 Sec. 201 (g) of the Social Security Amendments of 1956, P. L. 880, 84th Cong., amended subpar. (B) by adding thereto the following:

"or as a minister in a foreign country who has a congregation which is composed

predominantly of citizens of the United States," effective with respect to taxable years ending after 1956 except as provided in sec. 201 (m) (2) (B)-(F) of the Social Security Amendments of 1956. For sec. 201 (m) (2) (B)-(F) of the Social Security Amendments of 1956, see p. 211.

(4) in the case of any taxable year beginning after December 31, 1969, and before January 1, 1975, the tax shall be equal to 55/8 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 63/8 percent of the amount of the self-employment income for such taxable year.

SEC. 3101. RATE OF TAX.

In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section 3121 (a)) received by him with respect to employment (as defined in section 3121 (b))

(1) with respect to wages received during the calendar years 1957 to 1959, both inclusive, the rate shall be 214 percent;

(2) with respect to wages received during the calendar years 1960 to 1964, both inclusive, the rate shall be 234 percent;

(3) with respect to wages received during the calendar years 1965 to 1969, both inclusive, the rate shall be 344 percent;

(4) with respect to wages received during the calendar years 1970 to 1974, both inclusive, the rate shall be 334 percent; and

(5) with respect to wages received after December 31, 1974, the rate shall be 444 percent.72

SEC. 3111. RATE OF 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 percentages of the wages (as defined in section 3121 (a)) paid by him with respect to employment (as defined in section 3121 (b))

(1) with respect to wages paid during the calendar years 1957 to 1959, both inclusive, the rate shall be 244 percent;

(2) with respect to wages paid during the calendar years 1960 to 1964, both inclusive, the rate shall be 234 percent;

(3) with respect to wages paid during the calendar years 1965 to 1969, both inclusive, the rate shall be 344 percent;

(4) with respect to wages paid during the calendar years 1970 to 1974, both inclusive, the rate shall be 334 percent; and

(5) with respect to wages paid after December 31, 1974, the rate shall be 444 percent.78

SEC. 3121. DEFINITIONS.

(b) EMPLOYMENT.- For purposes of this Chapter, the term “employment” * * * shall not include

(1) (A) service performed in connection with the production or harvesting of any commodity defined as an agricultural com

72 The Social Security Amendments of 1956, P. L. 880, 84th Cong., sec. 202 (b), substituted the above pårs. (1)-(5) for former pars. (1)–(5) effective with respect to remuneration paid after December 31, 1956. For these pars. as they read prior to the 1956 Amendments see p. 402.

78 The Social Security Amendments of 1956, P. L. 880, 84th Cong., sec. 202 (c), substituted the above pars. (1)-(5) for former pars. (1)-(5) effective with respect to remuneration paid after December 31, 1956. For these pars, as they read prior to the 1956 Amendments, see p. 402.

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