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

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

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

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

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

61.60 54.00

46.40

38.80

20.80
31.20 23.60 15.40

11.80 4.90 0

7.30

.70

$460.

$480

64.30 56.70

49. 10

41.50

$480.

$500.

67.00 59.40

51.80

44.20

$500.

33.90 26.30 18.70 36.60 29.00 21.40 12.60 39.40 31.80 24.20 16.20 49.70 42. 10 34.50 26.90 19.30 37.20 29.60 22.00 47.60 40.00 32.40 24.80 17.00 80.70 73.10 65.50 57.90 50.30 42.70 35.10 27.50 19.90 84.80 77.20 69.60 62.00 54.40 46.80 39.20 31.60 24.00 16.00 90.30 82.70 75. 10 67.50 59.90 52.30 44.70 37.10 29.50 21.90 95.80 88.20 80.60 73.00 65.40 57.80 50.20 42.60 35.00 27.40 93.60 86.00 78.40 70.80 63.20 55.60 48.00 40.40 32.80 99.10 91.50 83.90 76.30 68.70 61.10 53.50 45.90 38.30 30.70 112. 20 104. 60 97.00 89.40 81.80 74.20 66.60 59.00 51.40 43.80 36.20 117.60 110.00 102.40 94.80 87.20 79.60 72.00 64.40 56.80 123. 10 115. 50 107.90 100.30 92.70 128. 60 121.00 113. 40 105.80 98. 20 $1,000134. 10 126. 50 118. 90 111.30 103. 70

14 percent of the excess over $1,000 plus

$1,000 and over.....1 36. 80 129. 20 121. 60 114.00 106.40 98.80 91. 20 83.60 76.00

"If the pay-roll period with respect to an employee is a daily pay-roll period or a miscellaneous pay-roll period—

The amount of tax to be withheld shall be the following amount multiplied by the number of days in such period

$19.50

1.95 1.70 1.45
2.00 1.75 1.50
2.55 2.30 2.05 1.80
2.65 2.40 2.15

1.20

.95

.70

.40

.15

0

1.25 1.00

.75

.45

.20

0

1.55 1.30 1.05

.80

55

.30

.05

1.90

1.65 1.40

$20.00.. 2.70 2.45

$20.00

3.80 3.55

$21.00.. 2.80 2. 55
$22.00.. 2.95
2.70 2.45 2.20 1.95 1.70
2.85 2.60 2.35 2.10 1.85 1.60 1.35 1.10
2.95 2.70 2.45 2.20 1.95 1.70 1.45 1.20
3. 10 2.85 2.60 2.35 2.10 1.85 1.60 1.35 1.10
3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25
3.65 3.40 3.15 2.90 2.65
2.40 2.15 1.90 1.65 1.40
3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25
3.90 3.65 3.40 3.15 2.90 2.65 2.40 2.15 1.90 1.65 1.40
4.05
3.30 3.05 2.80 2.55 2.30 2.05 1.80 1.55

SEC. 503. EFFECTIVE DATE.

The amendments made by this title shall be applicable only with respect to wages paid on or after April 1, 1948.

TITLE VI-FISCAL YEAR TAXPAYERS

SEC. 601. FISCAL YEAR TAXPAYERS.

Section 108 of the Internal Revenue Code is hereby amended by striking out "(d)" at the beginning of subsection (d) and inserting in lieu thereof "(e)", and by inserting after subsection (c) the following:

"(d) TAXABLE YEARS OF INDIVIDUALS BEGINNING IN 1947 AND ENDING IN 1848. In the case of a taxable year of an individual beginning in 1947 and ending in 1948, the tax imposed by sections 11, 12, and 400 shall be an amount equal to the sum of—

"(1) that portion of a tax, computed as if the law applicable to taxable years beginning on January 1, 1947, were applicable to such taxable year, which the number of days in such taxable year prior to January 1, 1948, bears to the total number of days in such taxable year, plus

"(2) that portion of a tax, computed as if the law applicable to taxable years beginning on January 1, 1948, were applicable to such taxable year, which the number of days in such taxable year after December 31, 1947, bears to the total number of days in such taxable year." Passed the House of Representatives February 2, 1948.

Attest:

JOHN ANDREWS, Clerk. The CHAIRMAN. The committee has a letter dated March 1, 1948, from Mr. Wiggins, the Under Secretary of the Treasury. The letter

states:

DEAR SENATOR MILLIKIN: Secretary Snyder, in compliance with your request, has asked that I submit the enclosed statement of his views with respect to H. R. 4790, which is to be the subject of hearings before your committee beginning this morning.

As you know, Secretary Snyder had planned, in accordance with earlier arrangements made with you, to appear before the committee and personally present his views on March 11. The Secretary, therefore, made arrangements which would take him out of the city for a period prior to his scheduled appearance on that date.

Subsequently, on Thursday of last week you advised that you believed it necessary that the Secretary's views be presented on the opening day of the hearings. You were kind enough to suggest that under these circumstances your committee would receive a written statement of the Secretary's views for presentation at the opening of the hearings this morning.

The Secretary asked me to convey his regrets that he could not be personally present this morning and his assurance that upon his return to the city he will be available in case the committee should desire his presence.

Sincerely,

A. L. M. WIGGINS, Under Secretary of the Treasury.

The contents of the letter are in accordance with my own understanding.

The preliminary part of the Secretary's statement is relatively brief, and I believe it would give better understanding to the hearing if it were read into the record, and the rest of it, together with the part read, will be a part of the record. Therefore, I shall read the preliminary part of the Secretary's statement. [Reading:]

STATEMENT OF JOHN W. SNYDER, SECRETARY OF THE TREASURY

I am glad to have an opportunity to present to this committee my views on the House bill H. R. 4790. I shall confine my remarks to the more important issues raised by the bill.