"Tax other than in case of joint return of husband and wife under section 51

"Tax in case of joint return of husband and wife under section 51

(b) TAXABLE YEARS TO WHICH APPLICABLE.-The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1947. For treatment of taxable years beginning in 1947 and ending in 1948, see section 601.

TITLE V-REDUCTION IN WITHHOLDING OF TAX AT SOURCE ON WAGES

SEC. 501. PERCENTAGE METHOD.

Section 1622 (a) and section 1622 (b) (1) of the Internal Revenue Code (relating to percentage method of withholding) are hereby amended to read as follows: "(a) REQUIREMENT OF WITHHOLDING.-Every employer making payments of wages shall deduct and withhold upon such wages a tax equal to the sum of the following:

"(1) 12 per centum of whichever of the following is the lesser :

"(A) the amount by which the wages exceed the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1); or

"(B) the amount shown in the second column in the table in subsection (b) (1);

"(2) 18 per centum of whichever of the following is the lesser:
"(A) the amount by which the wages exceed the sum of—

"(i) the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1); plus

"(ii) the amount shown in the second column in the table in subsection (b) (1); or

"(B) the amount shown in the third column in the table in subsection (b) (1);

"(3) 14 per centum of the amount by which the wages exceed the sum of— "(A) the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1); plus

"(B) the sum of the amounts shown in the second and third columns in the table in subsection (b) (1).

"(b) (1) The table referred to in subsection (a) is as follows:

SEC. 502. WAGE BRACKET WITHHOLDING.

The tables contained in section 1622 (c) (1) of the Internal Revenue Code (relating to wage bracket withholding) are hereby amended to read as follows:

"If the pay-roll period with respect to an employee is weekly—

"If the pay-roll period with respect to an employee is weekly—

12.70 11.00 9.20 7.50

5.70

3.90

1.90

.40

13.00 11.20 9.50

13.30 11.50 9.80

13.50

14.00

14.70

15.40

16. 10

7.70 8.00 6.30 4.50 2.40 11.80 10.00 8.30 6.50 4.80 2.70 12.30 10.50 8.80 7.00 5.30 3.30 13.00 11.20 9.40 7.70 5.90 4.20 13.60 11.90 10.10 8.40 6.60 4.90 14.30 12.60 18.80 9.10 7.30 5.60 15.00 13.30 11.50 9.70 8.00 6.20 15.70 13.90 12.20 10.40 8.70 6.90 16.40 14.60 12.90 11.10 9.40 17.10 15.30 13.50 11.80 17.70 16.00 14.20 12.50 10.70 9.00 18.40 16.70 14.90 13.20 11.40 9.70 19.50 17.70 15.90 14.20 12.40 10.70 8.90 7.20 5.40 3.50 22.60 20.80 19.10 17.30 15.60 13.80 12.00 10.30 8.50 6.80 5.00 23.90 22.20 20.40 18.70 16.90 15.20 13.40 11.70 9.90 8.20 6.40 25.30 23.60 21.80 20.00 18.30 16.50 14.80 13.00 11.30 9.50 24.90 23.20 21.40 19.70 17.90 16.20 14.40 12.60

"If the pay-roll period with respect to an employee is biweekly

18.30 14.80 11.30 7.70 3.80

The amount of tax to be withheld shall be

14. 10 10.50 6.70

11.10 7.40 3.60

.50