State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 49

PUBLIC LAWS-CH. 168-APR. 2, 1948

110
[CHAPTER 168]
April 2, 1948
IS. R. 4790
[Pubifo Law 4711

nev8nue

Act

[62 STAT.

AN ACT

To reduce Individual income tax payments, and for other purposes.
of

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act
divided into titles and sections according to the following Table o
Contents, may be cited as the "Revenue Act of 1948":
TABLE OF CONTENTS

Post, p. I1.

TITLE I-INCOME TAX REDUCTION

See. 101. Reduction of normal tax and surtax.
Sec. 102. Reduction in Supplement T tax.

See. 103. Income of husband and wife.
See. 104. Technical amendments.
See. 105. Taxable years to which amendments applicable.
Post, p. 112.

TITLE II-REDITS AGAINST NET INCOME FOR NORMAL TAX AND SURTAX

Sec.201. Additional credits against net Income for normal tax and surtax.
See. 202. Technical amendments.
See. 203. Taxable years to which amendments applicable.

TITLE

111-HUSBAND AND WIF
PART I-INCOME TAX

Post, p. 114.

See. 301. Splitting of income.
See. 302. Standard deduction.
See. 303. Joint returns of husband and wife.

See. 304. Deduction for medical expenses.
See. 305. Taxable years to which amendments applicable.
PART II-ESTATE TAX

%Post,p. 110.

SUBPART 1-REPEAL OF 1942 COMMUNITY PROPERTY AMENDMENTS

See. 851. Repeal of community property estate tax amendments.
SUBPART 2-MARITAL DEDUOTION FOR BEQUSSTS, ETO., TO SPOUSE

See. 361.
See. 362.
See. 363.
See. 364.
Se. 365.
See. 866.
Post, p. 126.

Marital deduction.
Property previously taxed.
Credit for gift tax.
Optional valuation.
Liability of life Insurance beneficiaries, etc.
Basis of surviving spouse's interest In community property.
PART Ut-GIFTTAX

See. 371. Gifts of community property.
See. 372. Marital deduction.
See. 373. Technical amendment.

See. 374. Gift of husband or wife to third party.
Post, p. 128.

TITLE IV-ADJUSTED GROSS INCOME OF LEss

THAN $5,000

See. 401. Individuals with adjusted gross incomes of less than $5,000.
Poet,

p. 130,Trm

V-REDucTION iN WrrHROLDING OF TAX AT SOURCE ON WAoS

See. 501. Percentage method.
See. 502. Wage bracket withholding.
See. 503. Effective date.
Post, p. 136.

TITLE VI-ISOAL YEAR TAXPAYERS

8ee. 601. FIscal year taxpayers.

80TH

62 STAT.]

ill

CONG., 2D SESS.-CII. 168--APR. 2, 1948

TITLE I-INCOME TAX REDUCTION
SEC. 101. REDUCTION OF NORMAL TAX AND SURTAX.

Section 12 (c) of the Internal Revenue Code is hereby amended to
read as follows:

63 Stat. 6.
2 U.S . 112 c>

"(c) REDUcrlON OF TENTATIVE NORMAL TAX AND TENTATIVE SURTAX.-

"(1) The combined normal tax and surtax under section 11 and
subsection (b) of this section shall be the aggregate of the tentative normal tax and tentative surtax, reduced as follows:
The reduction shall be:
If the aggregate is:
Not over

Over $400 but not over $100,000...

Over $100,000-------------------.

63 Stat. 5.
26 .S. C. t11,
(b).

12

Infra.

17% of the aggregate.

$68 plus 12% of excess over $400.
$12,020 plus 9.75% of excess over $100,000.

"(2) In no event shall the combined normal tax and surtax
exceed 77 per centum of the net income."
SEC. 102. REDUCTION IN SUPPLEMENT T TAX.

For reduction in the tax under Supplement T of Chapter 1 of the
Internal Revenue Code (tax table which may be used by taxpayer at
his election if his adjusted gross income is less than $5,000), see section
401.

65 Stat. 689.
26 U. S. C. It 400404.
Post, p. 128.

SEC. 103. INCOME OF HUSBAND AND WIFE.

For tax in case of joint return of husband and wife (the so-called
"splitting of income"), see section 301.
SEC. 104. TECHNICAL AMENDMENTS.

Post, p. 114.

(a) Section 11 of the Internal Revenue Code (relating to the normal
tax on individuals) is hereby amended by striking out "by 5 per centum

69

rate of surtax on individuals) is hereby amended by striking out "by

26 U.S.C. 112(b).

subsection (c) of this section".

supra.

thereof" and inserting in lieu thereof "as provided in section 12 (0) ".
(b) Section 12 (b) of the Internal Revenue Code (relating to the
5 per centum thereof" and inserting in lieu thereof "as provided in

Stat.. 57.
26 U.S. C.111.

Supra.

589 tat. 657.

(c) Subsections (d), (e), (f)(g), and (h) of section 12 of the 63 stat. 6;
26 U. S. C.
Internal Revenue Code are amended to read as follows:
"(e) CompuTATIoN or TAX WITHOUT REGARD TO CREDITS AGAINST (b).

TA.-In the application of this section, the combined normal tax and
surtax shall be computed without regard to the credits provided in
sections 31, 32, and 35.
"(f) ASCERTAINMENT OF NORMAL TAX AND SURTAX SEPARATELY.-

53 Stat.

6s stat.
112 (d)-

24; 56

Stat.

26 U. 8.0C. I31,32,

Whenever it is necessary to ascertain the normal tax and the surtax ***
separately, the surtax shall be an amount which is the same proportion
of the combined normal tax and surtax as the tentative surtax is of
the aggregate of the tentative normal tax and tentative surtax; and
the normal tax shall be the remainder of such combined normal tax
and surtax.
"(g) CROSS REFERENCES."(1) ALTERNATIVE TA.-For alternative tax which may be
elected if adjusted gross income is less than $5,000, see Supplem26

ment T.

"(2) TAX IN OASE or CAPITAL GAINS.-For rate and computation

of alternative tax in lieu of normal tax and surtax in the case of
capital gain from the sale or exchange of capital assets held for
iore than 0 months, see section 117 (o)*t
"(3) TAX ON PERSONAL HOLDING COMPANIES.-For surtax on
personal holding companies, see section 500.

-~

Stat. w

0
U. S. C.It40

404.
outs

2U.

a

p.128.

t8 I(e).
.

I.

112

PUBLIO LAWS-OH. 168-APR. 2,1948

[62 STAT.

"(4) AVOIDANCE OF SURTAXEs BY INCORPORATION.-For surtax on
corporations which accumulate surplus to avoid surtax on share-

holders, see section 102.
"(5) SALE OF OIL OR OAS PROPERTIES.-FOr limitation of surtax
B 1Wattributable to the sale of oil or gas properties, see section 105."
..
o.

63U, a.
26'.

SEC. 105. TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE.

4,

The amendments made by this title 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.

p~ne

TITLE II-CREDITS AGAINST NET INCOME
FOR NORMAL TAX AND SURTAX
SEC. 201. ADDITIONAL CREDITS AGAINST NET INCOME FOR NORMAL
TAX AND SURTAX.
2U.

.

(b)

Paragraphs (1) and (2) of section 25 (b) of the Internal Revenue

Code are hereby amended to read as follows:

"(1) CREDITS.-There shall be allowed for the purposes of both
the normal tax and the surtax, the following credits against net
income:
"(A) An exemption of $600 for the taxpayer; and an additional exemption of $600 for the spouse of the taxpayer if a
separate return is made by the taxpayer, and if the spouse,
for the calendar year in which the taxable year of the taxpayer
begins, has no gross income and is not the dependent of
another taxpayer;
"(B) (i) An additional exemption of $600 for the taxpayer
if he has attained the age of 65 before the close of his taxable
year; and
"(ii) An additional exemption of $600 for the spouse of
the taxpayer if a separate return is made by the taxpayer, and
if the spouse has attained the age of 65 before the close of such
taxable year, and, for the calendar year in which the taxable
year of the taxpayer begins, has no gross income and is not
the dependent of another taxpayer;
(C)(i) An additional exemption of $600 for the taxpayer
if he is blind at the close of his taxable year; and
"(ii) An additional exemption of $600 for the spouse of the
taxpayer if a separate return is made by the taxpayer, and if
the spouse is blind and, for the calendar year in which the
taxable year of the taxpayer begins, has no gross income and
is not the dependent of another taxpayer. For the purposes
of this clause the determination of whether the spouse is blind
shall be made as of the close of the taxable year of the taxpayer, unless the spouse dies during such taxable year, in
which case such determination shall be made as of the time of
such death;
(iii)For the purposes of this subparagraph an individual
is bhn only if either: his central visual acuity does not exceed
20/200 in the better eye with correcting lenses, or his visual
acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the
visual field subtends an angle no greater than 20 degrees;
"(D) An exemption of $600 for each dependent whose gross
income for the calendar year in which the taxable year of the
taifpayer begins is less than $500, except that the exemption
shall not be allowed in respect of a dependent who has made a
joint return with his spouse under section 51f or the taxable

year beginning in such calendar year.

62 STAT.]

113

80T CONG., 2D SESS.-CH. 168-APR. 2, 1948

"(2) DIERMINATIoN OF BTATus.-For the purposes of this

subsection"(A) the determination of whether an individual is married shall be made as of the close of his taxable year, unless
his spouse dies during his taxable year, in which case such
determination shall be made as of the time of such death; and
"(B) an individual legally separated from his spouse under
a decree of divorce or of separate maintenance shall not be
considered as married."
SEC. 202. TECHNICAL AMENDMENTS.
(a) DECLARATION OF ESTrmATED TA.-Section 58 (a) of the Internal Revenue Code (relating to requirement of declaration of estimated tax) is hereby amended to read as follows:
"(a) REQUIREMENT or DEOLARATIoN.-Every individual (other than
an estate or trust and other than a nonresident alien with respect to
whose wages, as defined in section 1621 (a), withholding under Subchapter D of Chapter 9 is not made applicable) shall, at the time
prescribed in subsection (d), make a declaration of his estimated tax
for the taxable year if"(1) his gross income from wages (as defined in section 1621)
can reasonably be expected to exceed the sum of $4,500 plus $600
with respect to each exemption provided in section 25(b); or
"(2) his gross income from sources other than wages (as defined
in section 1621) can reasonably be expected to exceed $100 for the
taxable year and his gross income to be $600 or more."
(b) WrrHIowING ExaMeTos.(1) IN oENERAL.-Section 1622 (h) (1) of the Internal Revenue
Code is hereby amended to read as follows:
"(1) IN GENERAL.-An employee receiving wages shall on any
day be entitled to the following withholding exemptions:
"(A) An exemption for himself.
"(B) One additional exemption for himself if, on the basis
of facts existing at the beginning of such day, there may
reasonably be expected to be allowable an exemption under
section 25 (b)1) (B) (i) (relating to old age) for the
taxable year under Chapter 1 in respect of which amounts
deducted and withheld under this subchapter in the calendar
year in which such day falls are allowed as a credit.
"(C) One additional exemption for himself if, on the basis
of facts existing at the beginning of such day, there may
reasonably be expected to be allowable an exemption under
section 25 (b)(1 )(C) (i) (relating to the blind) for the
taxable year under Chapter 1 in respect of which amounts
deducted and withheld under this subchapter in the calendar
year in which such day falls are allowed as a credit.
"(D) If the employee is married, any exemption to which
his spouse is entitled, or would be entitled if such spouse
were an employee receiving wages, under subparagraph (A),
(B), or (P),but only if such spouse does not have in effect
a withholding exemption certificate claiming such exemption.
"(E) An exemption for each individual with respect to
whom, on the basis of facts existing at the beginning of such
day, there may reasonably be expected to be allowable an
exemption under section 25 (b)( Q(D) for the taxable year
under Chapter 1 in respect of which amounts deducted and
withheld under this subchapter in the calendar year in which

such day falls are allowed as a credit."
887O~--4G--PT.

i-S

I

5? Stat. 141.

11 U.

0. *. (a).
168

67 Stat. 128.
28 U. 8. 0. 1s<211621.
1827 Supp
I,
Poit P.f60.
679 3e.. 142:
26 U. S. 0. 168 (d),

63 Stat. 18.
2(U. 0.0.26(b).
Ante, p. 112.
87 Stat. 128.
26 U. 8, 0. 1821;

67 Stat. 136.
28 U. 8. 0. 1.22
(b) (1).

^S p.u 161

Ante, P. 112.
63 Stat. 4.
28 U.8. 0. It11-421;

SuA.I.12seu.
6ttP.ml.

Ante, p. 112.
63 Stat. 4.
Supp. IrI122 d'eq.

WooeP. lletseq.

.

114

Ante, p. 113.

58 Stat. 254.
26 U. S. 0. 11622
(b (3) (B).

M3 Stat. 27; 6o Stat.
828.
26 U. S. 0. 151 (a).

53 Stat. 60; 56 Stat.
828.
26 U.S.(.142 (a).

53 Stat. 84; 58 Stat.
828.
26 U. S. 0. 1147 (a).

53 Stat. 67; 59 Stat.
W5.
26 U. S. 0.5s163 (a)
(1).

58 Stat. 38.
26 U. S. 0. 1 23 (y).

Post, p. 138.

PUBLIC LAWS-CH. 168-APR. 2, 1048

[62

STAT.

(2) STATUS DETERMINATION DATE.-In the case of an individual
entitled to an additional withholding exemption under section
1622 (h) (1) of the Internal Revenue Code by reason of the
amendment made thereto by paragraph (1) of this subsection,
the term "status determination date as used in section 1622
(h) (3) (B) of such Code includes also the ninetieth day after
the date of the enactment of this Act.
(c) REQUIREMENT OF RETURNS.(1) INDIVIDUAL RETURNs.-Section 51 (a) of the Internal Revenue Code (relating to the requirement of individual returns) is
hereby amended by striking out "$500" and inserting in lieu
thereof "$600".
(2) FIDUCIARY RETRNs.-Section 142 (a) of such Code (relating to the requirement of fiduciary returns) is hereby amended by
striking out '$500" wherever appearing therein an inserting m
lieu thereof "$600".
(3) INFORMATION RETURNS.-Section 147 (a) of such Code
relatinge to returns of information) is hereby amended by striking out '$500" wherever appearing therein and inserting in lieu
thereof "$600".
(d) CREDIT OF ESTATE AGAINST Nr INCOME.-Section 163 (a) (1)
of such Code (relating to credits against net income of an estate) is
hereby amended by striking out "$500" and inserting in lieu thereof
"$600'.
(e) REPEAL OF DEDUOrlON FOR BLIND INDIvIDUALS.-Effective with
respect to taxable years beginning after December 31, 1947, section
23 (y)of such Code (relating to special deduction for blind individuals) is repealed.
SEC. 203. TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE.
The amendments made by this title 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 III-HUSBAND AND WIFE
PART I-INCOME TAX
63 Stat. 5.
26 U. 8. 0. 112.
Ante, p. 111.

Post, P. 115.
3 Stat. u5.

26 U. S.0. f11,12
(b).
Ante, p. 111.
53 Stat. 17.
28 U.S. 0. 126.5
Ante, p. 112.

68 Stat. MO.

2t U. S. 0. 23as)
(1)(A).

j

skfe,

INT"PITASTI!

SEC. 301. SPLITTING OF INCOME.
Section 12 of the Internal Revenue Code (relating to surtax of
individuals) is hereby amended by adding after subsection (c) of
such section the following new subsection:
"(d) TAx ix CASE OF JOINT RmtmN.-In the case of a joint return
of husband and wife under section 51 (b), the combined normal tax
and surtax under section 11 and subsection (b) of this section shall be
twice the combined normal tax and surtax that would be determined
if the net income and the applicable credits against net income provided by section 25 were reduced by one-half."
SEC. 302. STANDARD DEDUCTION.
(a) INCREASE OF STANDARD DEDUCTION IN CASE OF JOINT RErUN
OR RETURN BY UNMARRIED PERsoN.-Section 23 (aa)(1) (A) of the

Internal Revenue Code (relating to the standard deduction) is hereby
amended to read as follows:
"(A) Adjusted Gross Income $5,000 or More.-If his
adjusted gross income is $5,000 or more, the standard deduction shall be $1,000 or an amount equal to 10 per centum of
the adjusted gross income, whichever is the lesser, except that

.NVAJr

-

-

~

-

-

--

'~'~ ~

02 $TAT.]

in the case of a separate return by a married individual, the
standard deduction shall be $500.
(b) ELCTIoN BY HUSBAND AND WIFE.-Section 23 (aa) (4) of such
Code is hereby amended to read as follows:
"(4)

HUSBAND AND WIFE.-In

the case of husband and wife,

the standard deduction shall not be allowed to either if the net
income of one of the spouses is determined without regard to the
standard deduction."
(c)

DETERMINATION OF

STATUs.-Section 23 (aa) of such Code is

hereby amended by adding at the end thereof the following new paragraph:
"(6) DETEI iNATION oPr sTATUs.-For the purposes of this
subsection"(A) the determination of whether an individual is married shall be made as of the close of his taxable year, unless
his spouse dies during his taxable year, in which case such
determination shall be made as of the time of such death; and
"(B) an individual legally separated from his spouse under
a decree of divorce or of separate maintenance shall not be
considered as married."
SEC. 303. JOINT RETURNS OF HUSBAND AND WIFE.

Section 51 (b) of the Internal Revenue Code (relating to joint
returns) is hereby amended to read as follows:
" (b) HUSBAND AND WIFE."(1) IN GENERAL.-A husband and wife may make a single
return jointly. Such a return may be made even though one of
the spouses has neither gross income nor deductions. if a joint
return is made the tax shall be computed on the aggregate income
and the liability with respect to the tax shall be joint and several.
"(2) NONRESIDENT ALIEN.-No joint return may be made if
either the husband or wife at any time during the taxable year is
a nonresident alien.
"(8) DIFFERENT TAXABLE YEARS.-No joint return shall be made
if the husband and wife have different taxable years; except that
if such taxable years begin on the same day and end on different
days because of the death of either or of both, then the joint return
may be made with respect to the taxable year of each. The above
exception shall not apply if the surviving spouse remarries before
the close of his taxable year, nor if the taxable year of either
spouse is a fractional part of a year under section 47 (a).
"(4) JOINT RETuRN AFTER DEATH.-In the case of the death of
one spouse or both spouses the joint return with respect to the decedent may be made only by his executor or administrator; except
that in the case of the death of one spouse the joint return may be
made by the surviving spouse with respect to both himself and the
decedent if (A) no return for the taxable year has been made by
the decedent, (B) no executor or administrator has been appointed,
and (C) no executor or administrator is appointed before the last
day prescribed by law for filing the return of the surviving spouse.
If an executor or administrator of the decedent is appointed after
the making of the joint return by the surviving spouse the executor or administrator may disaffirm such joint return by making,
within one year after the last day prescribed by law for filing the
return of the surviving spouse, a separate return for the taxable
year of the decedent with respect to which the joint return was
made, in which case the return made by the survivor shall constitute his separate return.

K'>

115

80TH CONG., 2D SESS.-CH. 108-APR. 2, 1948

Stat. 237.
20 U.S.0.' 23(as)
68

(4).

68 stat. 23o.

20 U.S. 0. 6123 (aa).

63 Stat. 27.
26 U. S. 0.

651
(b).

53 stat. 20.
2 U. 8.0. 47(a).

116

PUBLIC LAWS-OH. 168--APR. 2, 1948

(62 STAT.

"(5) DrERMINATION OF STATus.-For the purposes of this
section"(A) the status as husband and wife of two individuals
having taxable years beginning on the same day shall be
determined"(i) if both have the same taxable year-as of the close
of such year; and
"(ii) if one dies before the close of the taxable year
of the other-as of the time of such death; and
"(B) an individual who is legally separated from his
spouse under a decree of divorce or of separate maintenance
shall not be considered as married.
"(6) TAX IN CASE OF JOINT RETURN.-For determination of com-

20 U.G.%. it to12

(bA(d).
Ava., p. III.

55 Stat. Ms.
20 U. S.C0. If 400.-

404.

Pe, p. 128.
6 Stat. 823.

123
26 U. .C0. Wx.

83 Stat. 18.

20 U.S. 0. 125(b).
Ard, p. 112.

Ante, p. 115.

Ante, pp. 114, 115;
supra.

Post, p. 13.

bined normal tax and surtax under section 11 and section 12 (b)
in case of joint return under this subsection, see section 12 (d).
For tax in case of joint return of husband and wife electing to
pay the tax under Supplement T, see section 400."
SEC. 304. DEDUCTION FOR MEDICAL EXPENSES.
Section 23 (x) of the Internal Revenue Code (relating to deduction
of medical, etc., expenses) is hereby amended by striking out the second
and third sentences thereof and inserting in lieu thereof the following: "The deduction shall not be in excess of $1,250 multiplied by the
number of exemptions allowed under section 25 (b) for the taxable
year (exclusive of exemptions allowed under section 25 (b) (1) (B) or

C)), with a maximum deduction of $2,500, except that the maximum

eduction shall be '5,000 in the case of a joint return of husband and
wife under section .1 (b)."
SEC. 305. TAXABLE YEARS TO WHICII AMENDMENTS APPLICABLE.
The amendments made by sections 301, 802, 803, and 304 shall be
applicable with respect to taxable years beginning after December
31, 1947. The amendment made by section 303 shall also be applicable
to taxable years of both husband and wife beginning on the same day
in 1947 if at least one of such taxable years ends in 1948. For treatment of taxable years beginning in 1947 and ending in 1948, see section 601.
PART II-ESTATE TAX
Subpart 1-Repeal of 1942 Community Property Amendments

86 Stat. 041, 942, 945.

268U.8S. 0. 1811 (d)
Sup .

811 no e.

SEC. 351. REPEAL OF COMMUNITY PROPERTY ESTATE TAX AMEND.
MENTS.
(a) Effective with respect to estates of decedents dying after December 31, 1947, sections 811 (d) (5), 811 (e) (2) and 811 (g) (4) of the
Internal Revenue Code (relating to community property) are hereby
repealed.
(b) Such section 811 (e) is further amended(1) by striking out of the heading of such subsection the words
"AND CoMMuxurrr ;

and

(2) by striking out of paragraph (1) the following: "JoINT
wrTEREST.- .
63 Stat. 118.

26 U. S. 0.
QAKrs

K

5.

1:all,

SQ()~-

(e) Notwithstanding the repeal of sections 811 (d) (5),811 (e) (2),
and 811 (g) (4) provided in subsection (a), the taxes imposed under
chapter 8 of the Internal Revenue Code upon the transfer of the net

*1

~

~

*4j~'il ~

62 STAT.]

-

--

-

--

-

~

,---~-.

-

-~ -

-,

'-~-~

117

80TE CONG., 2D SESS.-CH. 168-APR. 2,1948

estate of any decedent dying after December 81, 1947, and on or
before the date of the enactment of this Act shall not exceed the taxes
which would have been imposed under such chapter 3 upon such
transfer if this section had not been enacted.
Subpart 2-Marital Deduction for Bequests, Etc., to Spouse
SEC. 861. MARITAL DEDUCTION.

(a) Section 812 of the Internal Revenue Code (relating to deductions in computing net estate in the case of a citizen or resident of
the United States) is hereby amended by adding at the end thereof a
new subsection to read as follows:
"(e) BEQUESTS, ETo., To SuRvImI Srous,.-

53 Stat. 123.
26 U. S. 0.
Supp.1, 1812.

1 812;

,ost, 121,1214.
pp.

"(1) ALLOWANCE OF MARITAL DEDUCrON.-

"(A) In General.-An amount equal to the value of any
interest in property which passes or has passed from the
decedent to his surviving spouse, but only to the extent that
such interest is included in determining the value of the gross
estate.
"(B) Life Estate or Other Terminable Interest.-Where,
upon the lapse of time, upon the occurrence of an event or
contingency, or upon the failure of an event or contingency to
occur, such interest passing to the surviving spouse will terminate or fail, no deduction shall be allowed with respect to
such interest"(i) if an interest in such property passes or has passed
(for less than an adequate and full consideration in
money or money's worth) from the decedent to any person
other than such surviving spouse (or the estate of such
spouse); and

"(ii) if by reason of such passing such person (or his

heirs or assigns) may possess or enjoy any part of such

property after such termination or failure of the interest
so passing to the surviving spouse;
and no deduction shall be allowed with respect to such interest
(even if such deduction is not disallowed under clauses (i)
and (ii))-

"(iii) if such interest is to be acquired for the surviving
spouse, pursuant to directions of the decedent, by his
executor or by the trustee of a trust.
For the purposes of this subparagraph, an interest shall not
be considered as an interest which will terminate or fail
merely because it is the ownership of a bond, note or similar
contractual obligation, the discharge of which would not have
the effect of an annuity for life or for a term.
"(0) Interest In Unidentified Assets.-Where the assets
(included in the decedent's gross estate) out of which, or the
proceeds of which, an interest passing to the surviving spouse
may be satisfied include a particular asset or assets with respect
to which no deduction would be allowed if such asset or assets
passed from the decedent to such spouse, then the value of such
interest passing to such spouse shall, for the purposes of subparagraph (A), lie reduced by the aggregate value of such
particular assets.
"(D) Interest of Spouse Conditional on Survival For Limited Period.-For the purposes of subparagraph (B) an interest passing to the surviving spouse shall not be considered as

Vs

Il

4 - 44u-.O"

118

ilm ,

PUBLIO LAWS-Of. 168-APR. 2, 1048

[62 STnT.

an interest which will terminate or fail upon the death of
such spouse if"(i) such death will cause a termination or failure
of such interest only if it occurs within a period not
exceeding six months after the decedent's death, or only
if it occurs as a result of a common disaster resulting
in the death of the decedent and the surviving spouse, or
only if it occurs in the case of either such event; and
"(ii) such termination or failure does not in fact
occur.
"(E) Valuation Of Interest Passing To Surviving
Spouse.-In determining for the purposes of subparagraph
(A) the value of any interest in property passing to the
surviving spouse for which a deduction is allowed by this
subsection"(i) there shall be taken into account the effect which
a tax imposed by this chapter, or any estate, succession,
legacy, or inheritance tax, has upon the net value to the
surviving spouse of such interest; and
"(ii) where such interest or property is incumbered
in any manner, or where the surviving spouse incurs
any obligation imposed by the decedent with respect
to the passing of such interest, such incumbrance or
obligation shall be taken into account in the same manner
as if the amount of a gift to such spouse of such interest
were being determined.
"(F) Trust With Power Of Appointment In Surviving
Spouse.-In the case of an interest in property passing from
the decedent in trust, if under the terms of the trust his
surviving spouse is entitled for life to all the income from
the corpus of the trust, payable annually or at more frequent
intervals, with power in the surviving spouse to appoint the
entire corpus free of the trust (exercisable in favor of such
surviving spouse, or of the estate of such surviving spouse,
or in favor of either, whether or not in each case the power is
exercisable in favor of others), and with no power in any
other person to appoint any part of the corpus to any person
other than the surviving spouse"(i) the interest so passing shall, for the purposes of
subparagraph (A), be considered as passing to the
surviving spouse, and
"(ii) no part of the interest so passing shall for the
purposes of subparagraph (B)
), be considered as
passing to any person other than the surviving spouse.
This subparagraph shall be applicable only if, under the
terms of the trust, such power in the surviving spouse to
appoint the corpus, whether exercisable by will or during
life, is exercisable by such spouse alone and in all events.
"(G) Life Insurance With Power of Appointment in SurvivingSpouse.-In the case of proceeds of insurance upon
the life of the decedent receivable in annual or more frequent
installments commencing within one year after the decedent's
death, if under the terms of the policy all amounts payable
during the life of the surviving spouse are payable only to
such
amounts

spouse,

and
payable

if

such
after

spouse
such

has
spouse's

the

power
death

to

appoint

(exercisable

all
in

I i.AL

1

62 BTaT.]

119

8Or CONG., 2D 8108S.-OH 168-APR. 2, 1948

favor of the estate of such spouse, whether or not the power
is exercisable in favor of others)"(i) such proceeds shall, for the purposes of subparagraph (A), e considered as passing to the surviving
spouse, and
"(ii) no part of such proceeds shall, for the purposes
of subparagraph (B) (i), be considered as passing to
any person other than the surviving spouse.
This subparagraph shall be applicable only if, under the
terms of the policy, such power in the surviving spouse to
appoint, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.
"(H) Limitation On Aggregate Of Deductions.--The
aggregate amount of the deductions allowed under this paragraph (computed without regard to this subparagraph) shall
not exceed 50 per centum of the value of the adjusted gross
estate, as defined in paragraph (2).

Ane, p. 117.

Ante, p. 117.

"(2) COuWrATION OF ADJUSTED GROSS ESTATE.-

"(A) General Rule.-Except as provided in subparagraph
(B) of this paragraph the adjusted gross estate shall, for
the purposes of paragraph (1) (H), be computed by subtracting from the entire value of the gross estate the aggregate amount of the deductions allowed by subsection (by of
this section.
"(B) Special Rule In Cases Involving Community Property.-If the decedent and his surviving spouse at any time
held property as community property under the law of any
State Territory, or possession of the United States, or of
any foreign country, then the adjusted gross estate shall,
for the purposes of paragraph (1) (H), be determined by
subtracting from the entire value of the gross estate the
sum of:
"(i) the value of property which is at the time of the
death of the decedent held as such community property;
and
"(ii) the value of property transferred by the decedent
during his life, if at the time of such transfer the property was held as such community property; and
"(iii) the amount receivable a insurance under policies upon the life of the decedent to the extent purchased
with premiums or other consideration paid out of prop.erty held as such community property; and
"(iv) an amount which bears the same ratio to the
aggregate of the deductions allowed under subsection
(b) of this section which the value of the property
included in the gross estate, diminished by the amount
subtracted under clauses (i), (ii), and (iii) of this subparagraph, bears to the entire value of the gross estate.
For the purposes of clauses (i), (ii), and (iii) community
property (except property which is considered as community
property solel by reason of the provisions of subparagraph
0) of this paragraph) shall be considered as not 'held as such
community property' as of any moment of time, if, in case of
the death of the decedent at such moment, such property (and
not merely one-half thereof) would be or would have been
includible in determining the value of his gross estate without
regard to the provisions of section 811 (e) (9). The amount

I
j

Supra.
63 Stat. 123,
26 U.S. 0. 812(b).

W Stat. o042
46

, p.
10.

-.

120

PU3LIO IAWS-OH. 168-APR. 2,1948

~

[62

STAT.

to be subtracted under clause (i), (ii), or (iii) shall not exceed
the value of the interest in the property described therein
which is included in determining the value of the gross estate.
"(0) Same-Conversion Into Separate Property."(i) If during the calendar year 1942 or after the date
of the enactment of the Revenue Act of 1948, property
held as such community property(unless considered by
reason of subparagraph (B) of this paragraph as not so
held) was by the decedent and the surviving spouse converted, by one transaction or a series of transactions, into
separate property of the decedent and his spouse (including any form of co-ownership by them), the separate
proper so acquired by the decedent and any property
acquired at any time by the decedent in exchange therefor
(by one exchange or a series of exchanges) shall, for the
purposes of clauses (i), (ii), and (iii) of subparagraph
(B), be considered as 'held as such community property'.
"(ii) Where the value (at the time of such conversion)
of the separate property so acquired by the decedent
exceeded the value (at such time) of the separate property so acquired by the decedent's spouse, the rule m
clause (i) shall be applied only with respect to the same
portion of such separate property of the decedent as the
portion which the value (as of such time) of such separate property so acquired by the decedent's spouse is of
the value .(as of such time) of the separate property so
acquired by the decedent.
"(8) Daizxrrox.-For the purposes of this subsection an interest in property shall be considered as passing from the decedent to
any person if and only if-.
(A) such interest is bequeathed or devised to such per-

Ante, p. 119.

Ante, p. 119.

son by the decedent; or

"(B) such interest is inherited by such person from the
decedent; or
"(0) such interest is the dower or curtesy interest (or
statutory interest in lieu thereof) of such person as surviving
spouse of the decedent; or
bD) such interest has been transferred to such person
by thedecedent at any time; or
"(E) such interest was, at the time of the decedent's death,
held by such person and the decedent (or by them and any
other person) in joint ownership with right of survivorship; or
"(F) the decedent had a power (either alone or in conjunction with any person) to appoint such interest and if
he appoints or has appointed such interest to such person,
or if such person takes such interest in default upon the
release or nonexercise of such power; or
"(G) such interest consists of proceeds of insurance upon
the life of the decedent receivable by such person.
Except as provided in subparagraph (F) or (G) of paragraph
(1), where at the time of the decedent's death it' is not possible
to ascertain the particular person or persons to whom an interest
in property may pass from the decdent such interest shall for
the purposes of clauses (i) and (fi) of subparagraph (BS of
paragraph (1), be considered as passing from the decedent to
a person other than the surviving spouse.

Ante, p. It.M

W

I

-!,

-----

I-,

eS awa.]

8TH

121

CONG., 2D 8SS.-OH. 168-APR. 2,#1948

"(4) DuicmERS."(A) By Surviving Spouse.-If under this subsection an
interest would, in the absence of a disclaimer by the surviving spouse, be considered as passing from the decedent to
such spouse, and if a disclaimer of such interest is made by
such spouse, then such interest shall, for the purposes of
this subsection, be considered as passing to the person or persons entitled to receive such interest as a result of the
disclaimer.
"(B) Disclaimer By Any Other Person.-If under this
subsection an interest would, in the absence of a disclaimer by
any person other than the surviving spouse, be considered
as passing from the decedent to such person, and if a disclaimer of such interest is made by such person and as a result
of such disclaimer the surviving spouse is entitled to receive
such interest, then such interest shall, for the purposes of
this subsection, be considered as passing, not to the surviving
spouse, but to the person who made the disclaimer in the
same manner as if the disclaimer had not been made."
(b) The amendment made by subsection (a) of this section shall
be applicable only with respect to estAtes of decedents dying after
December 31, 1947.

A e, p. 117.

SEC. 3862. PROPERTY PREVIOUSLY TAXED.

(a) Section 812 (o) of the Internal Revenue Code (relating to the
deduction for property previously taxed) is hereby amended by adding
after the first paragraph two new paragraphs to read as follows:
"The following property shall not, for the purposes of this subsection, be considered as property with respect to which a deduction may
be allowed: (A) property received from a prior decedent who died after
December 81, 1947, and was at the time of such death the decedent's
spouse, (B) property received by gift after the date of the enactment
of the Revenue Act of 1948 from a donor who at the time of the gift
was the decedent's spouse, and (C) property acquired in exchange for
property described in clause (A) or (B).
"Where, under the provisions of section 1000 (f),a gift received by
the decedent was considered as made one-half by the donor and onehalf by the donor's spouse, one-half of the gift shall be considered as
received by the decedent from each such spouse."
(b) Section 812 (c) is further amended by striking out "subsections
(a) and (d) " and inserting in lieu thereof "subsections (a), (d),
and (e)".

63 Stat. 124.
20U.S..
s0.812>

Pod, P. 127.

SEC. 3863. CREDIT FOR GIFT TAX.

(a) Section818 (a(2) (A) of the Internal Revenue Code (relating to credit for gifttax) is hereby amended by inserting before the
period at the end thereof the following: "reduced by the aggrate
amount of the deductions allowed under subsections (d) and(e) of
section 812".
(b Subparagraph (B) of section 818 (a) (2) of the Internal Revenue de (relating to credit for gift tax) is hereby amended to read
as follows:
"(B) In applyn with respect to any gift, the ratio stated
in subparagraph A)the value at the time of the gift or at
the time of the death, referred to in such ratio, shall be
reduced"(i) by such amount as will properly reflect the amount
of such gift which was excluded in determining (for the

-

-

63 Stat. 12.

26 U. a. 0. 1818 (a)
(2) (A).
53 Stat. 124
A ,p. u
e812(d).
1214.
3 Stat. 12s.
26 U..0.88(s)
(2) (B)

122

PUI3LIO LAWS-OH. 168-APR 2,1948

[02 S*a.

purposes of section 1003 (a), or of section 504 (q) of the
(a).
Revenue Act of 1932) the total amount of gifts made
47 Stat. 247.
during the year in which the gift was made;
"(ii) if a deduction with respect to such gift is allowed
Ante, p. 117.
under section 812 (e) (the so-called 'marital deduetion)- then by an amount which bears the same ratio
to such value (reduced as provided in clause (i) of this
subparagraph) as the aggregate amount of the marital
deductions allowed under section 812 (e) bears to the
aggregate amount of such marital deductions computed
without regard to subparagraph (H) of section 812 (e)
Ante, p. 119.
(1);and
"(iii) if a deduction with respect to such gift is
63 Mtat. 124.
allowed under section 812 (d) (the so-called 'charitable
26 U. o.
0.supp. 1
1812 (d).
deduction')-then by the amount of such value, reduced
as provided in clause (i) of this subparagraph.
"(C) Where the decedent was the donor of the gift but,
Paot, p. 127.
under the provisions of section 1000 (f), the gift was considered as made6dne-half by his spouse-"(i) the term 'the amount of the tax paid under
63 Stat. 125.
chapter 4', as used in subparagraph (A) of this para26 U. S. 0. 813 (a)
(2) (A).
graph, includes the amounts paid with respect to each
half of such gift, the amount paid with respect to each
being computed in the manner provided in subparagraph
(D); and
"(ii) in applying, with respect to such gift, the ratio
stated in subparagraph (A) of this paragraph, the value
at the time of the gift or at the time of the death,
referred to in such ratio, includes such value with respect
to each half of such gift each such value being reduced
as provided in clause (i5 of subparagraph (Bf) of this
paragraph.
63 Stat. 125.
"(D) (i) For the purposes of subparagraph (A), the
26 U. S. 0. 1813 (a)
amount of tax paid under chapter 4, or under Title III of
63 Sta. 14
the Revenue Act of 1982, with respect to any gift shall be
2 U.a.0. 111000an amount which bears the same ratio to the total tax paid
1031; Supp.o, If1000,
1on4.
for the year in which the ift was made as the amount of
pogP. 125, 127.
such gift bears to the total amount of net gifts (computed
without deduction of the specific exemption for such year.
"?ii) For the purposes of clause (i) the 'amount. of such
giftshall be the amount included with respect to such gift
63 stat. 146.
in determining (for the purposes of section 1003 (a), or of
28 U.S.0.11003(a).
section 504 a of the Revenue Act of 1932) the total amount
47 Stat. 247.
of gifts made during such year, reduced by the amount of
any deduction allowed with respect to such gift under section
63 stat. 147.
1004 (a) (2), or under section 505 (a) (2J of the Revenue
o1004
(a)
2. U. S.0.
Act of 1932 (the so-called 'charitable deduction'), or under
j; Supp.1, 1 1004
a7
o(Lt.a247.
section 1004 (a) (3) (the so-called 'marital deduction')."
(c) Section 936 (b) (1) of the Internal Revenue Code (relating
.. 0. 1 93
8
to credit for gift tax) is hereby amended by inserting after the words
(b)0).
"entire gross estate' in clause (A) thereof the following: "redued
by the aggregate amount of the deductions allowed under subsections
63 tat. 124.
26 U. S. 0., Supp. 10 (d) and () of section 812".
1812 (d).
(d) Par aph (2) of section 986 (b of the Internal Revenue
Ante, . 17,
Code (relatngto credit for gift tax) i hereby amended to read as
(2).
follows-:
63 Stat. 146.
0.
d.
26 U.

*

1003
o

MI

4

S,~I-~-- ~

02 STAT.]

~

~A

,~

k~r~-~~t -

'1

~

123

80Tm OONG., 2D SESS.-OII. 168-APR. 2,1948

"(2) In applng, with respect to any gift, the ratio stated
in cause (A) of paragraph (1), the value at the time of the gift. 63 Stat. .142.
20U
or at the time of the death, referred to in such ratio, shall be (1) (A). .1M938(b)
Af, p..122.
reduced"(A) by such amount as will properly reflect the amount
of such gift which was excluded in determining (for the
purposes of section 1003 (a), or of section 504 (a) of the 63 Stat. 14o.
Revenue Act of 1982) the total amount of gifts made during 206U.S. 0.11003()
47 Stat. 27.
the year in which the gift was made;
"(B) if a deduction with respect to such gift is allowed
Ans, p. 117.
under section 812 (e) (the so-called 'marital deduction')
then by an amount which bears the same ratio to such value
(reduced as provided in subparagraph (A) of this paragraph) as the aggregate amount of the marital deductions
allowed under section 812 (e) bears to the aggregate amount
of such marital deductions computed without regard to subAnte, p. 119.
paragraph (H) of section 812 (e) (1); and
"(C) if a deduction with respect to such gift is allowed
63 Stat. 124.
under section 812 (d) (the so-called 'charitable deduction')26 U.
a,.0.,Supp.I,
then by the amount of such value, reduced as provided in 1812 (d).
.Supva.
subparagraph (A) of this paragraph.
"(8) Where the decedent was the donor of the gift but, under
the provisions of section 1000 (f), the gift was considered as Po, p. .127
made one-half by his spouse"(A) the term 'the amount of the tax paid under chapter
63.1s42.
4', as used in paragraph (1) of this subsection, includes the 26 U.S. 0. M93(b)>
().
amounts paid with respect to each half of such gift, the
amount paid with respect to each being computed inmthe
manner provided in paragraph (4) ; and
"(B) in applying, with respect to such gift, the ratio stated
in clause(
of paragraph (1) the value at the time -f the
gift or at the time of the death, referred to in such ratio,
mcludes such value with respect to each half of such gift,
each such value being reduced as provided in subparagraph
(A) of paragraph (2).
99(4) (A) For the purposes of paragraph (1) the amount of 63 Stat. 142.1 OM (b)
26 U. S. 0.
tax paid under chapter 4, or under Title II of the Revenue Act (0. P. 122.
of 1932, with respect to any gift shall be an amount which bears Anste* 144,
63 stat.
2o
the same ratio to the total tax paid for the year in which the gift 1031; U. S.0.1It1000Supp. 1, J) 1000O
was made as the amount of such gift bears to the total amount 1004..
Pod pp. 125,127.
of net gifts (computed without deduction of the specific 47 SULt 245.
exemption) for such year.
"(B) For the purposes of subparagraph (A) the 'amount of
such gift' shall be the amount included with respect to such gift
in determining (for the purposes of section 1003 (), or of section 63 Stat.-148.
26U.s8:.11003(a).
504 (a) of the Revenue Act of 1932) the total amount of gifts 47 Stt 2
made during such year, reduced by the amount of any deduction
63
allowed with respect to such gift under section 1004 (a) (2)or 20 Rat. 147.11004~a
U. S.
under section 505 (a) (2) of the Revenue Act of 1982 the 2; Supp.0. 1004*
I,
so-called 'charitable deduction'), or under section 1004 (a) (8)
47 Stat. 247o
P$, p.125.
(the so-called 'marital deduction )."
(e) The amendments made by this section shall be applicable only
with respect to the estates of decedents dying after December 81, 1947.
SEC. 364. OPTIONAL VALUATION.

(a) The last sentence of section 811 (j) of the Internal Revenue
Code (relating to optional valuation) is hereby amended to read as

-

___________________________

~

~

83 Stat 122.
20 Ut.-.0.181()

-

,.-~i.

124
83 Stat. I

PUBLIC LAWS-OH. 168-APR, 2, 1948

180.

u.0Supp.(B

follows: "In case of an election made by the executor under this
subsection, then"(A) for the purposes of the deduction under section 812
(d) or section 861 (a) (3), any bequest, legacy, devise, or
transfer enumerated therein, and
"(B) for the purposes of the deduction under section 812
(e), any interest in property passing to the surviving spouse,
shall be valued as of the date of the decedent s death with adjustment
for any difference in value (not due to mere lapse of time or the occurrence or nonoccurrence of a contingency) of the property as of the date
one year after the decedent's death (substituting, in the case of property distributed by the executor or trustee, or sold, exchanged, or
otherwise disposed of, during such one-year period, the date thereof)0."
(b) The amendment made by this section shall be applicable only
with respect to estates of decedents dying after December 81, 1947.
SEC. 365. LIABILITY OF LIFE INSURANCE

83 Stat. 128.
20 U. 8. 0. 182(c).

Ante, p. 117.

so 8tat.943.
2o U. .0. 1s(d).

Aske, p. 117.

[62 STAT,

BENEFICIARIES, ETC.

(a) Section 826 (c) of the Internal Revenue Code (relating to liability of life insurance beneficiaries) is hereby amended by ading at
the end thereof the following new sentence: "In the case of such proceeds receivable by the surviving spouse of the decedent for which a
deduction is allowed under section 812 (e) (the so-called 'marital
deduction'), this subsection shall not apply to such proceeds except as
to the amount thereof in excess of the aggregate amount of the marital
deductions allowed under such subsection."
(b) Section 826 (d) of the Internal Revenue Code (relating to liability of recipient of property over which decedent had power of
app ointment) is hereby amended by adding at the end thereof the
flowing new sentence: "In the case of such property received by the
surviving spouse of the decedent for which a deduction is allowed
under section 812 (e) (the so-called 'marital deduction'), this subseetion shall not apply to such property except as to the value thereof
reduced by an amount equal to the excess of the ag egate amount of
the marital deductions allowed under section 812 over the amount
of proceeds of insurance upon the life of the decedent receivable by
the surviving spouse for which proceeds a marital deduction is allowed
under such subsection."
(c) The amendments made by this section shall be applicable only
with respect to estates of decedents dying after December 81, 1947.
SEC. 866. BASIS OF SURVIVING SPOUSE'S INTEREST IN COMMUNITY
PROPERTY.

83 Stat. 41.
26SU. 8. 0. 118 (s)

88 Stat. 120.
28 U. 8. 0. 1 811;
Supp. 1, I 811 note.
Ane, pp. 118, 123,
88 Stat. 118.

26 U. 8. 0. 11800-

ftpp.i, H811, 812,
Ant

'&
4,
-Pogo

I

(a) Section 113 (a) (5) of the Internal Revenue Code (relating to
basis of property transmitted at death) is hereby amended by addin
at the end thereof the following new sentences: "For the purposes o
this paragraph the surviving spouse's one-half share of community
property held by the decedent and the surviving spouse under the
community property laws of any State, Territory or possession of the
United States or any foreign country shall be considered to be property
'acquired by bequest, devise, or inheritance' from the decedent, if the
death of the decedent was after December 31, 1947, and if at least
one-half of the whole of the community interest in such property was
includible in determining the value of the decedent's gross estate under
section 811. In the case of property held by a decedent and his surviving spouse under the community property laws of any State,
Territory, or possession of the United States or any foreign country,
if the value of any part of the surviving spouse's one-half share of such
property was included in determining the value of the gross estate of
the decedent and a tax under chapter 8 was payable upon the transfer

71,".1

E3

62 STAT.]

125

80ia CONG., 2) SESS.-OH. 168-APIR 2,1948

of the net estate of the decedent, then for the purposes of this paragraph such part of such one-half share of the surviving spouse shall
be considered to be property 'acquired by bequest, devise, or inheritance'
from the decedent if the death of the decedent was after the date of the
enactment of the Revenue Act of 1942 and on or before December 81,
1947; but nothing in this sentence shall reduce basis below that which
would exist if the Revenue Act of 1948 had not been enacted."
(b) If the allowance of a credit or refund of any overpayment of
tax resulting from the application of this section is prevented on the
date of the enactment of this Act, or within one year from such date
by the operation of any law or rule of law (other than section 3761
of the Internal Revenue Code, relating to compromises), credit or
refund of such overpayment may, nevertheless, be allowed or made if
claim therefor is filed within one year from the date of the enactment
of this Act. No interest shall be paid on any overpayment resulting
from the application of the last sentence of section 113 (a) (5) of such
code, as amended by this section, if such overpayment is for a taxable
year beginning before January 1,1948.

6o stat. 798.

83 Stat. 462.

20 U.S8. 0. 13761.

Aske, P. 124.

PART III-GIFT TAX
SEC. 371. GIFTS OF COMMUNITY PROPERTY.

Section 1000 (d) of the Internal Revenue Code (relating to gifts of
property held as community property) is amended by adding at the
end thereof a new sentence to read as follows: "This subsection shall be
applicable only to gifts made after the calendar year 1942 and on or
before the date of the enactment of the Revenue Act of 1948."

i Stat. o

0(3.

SEC. 372. MARITAL DEDUCTION.

Section 1004 (a) of the Internal Revenue Code (relating to deductions in computing net gifts in the case of a citizen or resident of the
United States) is hereby amended by adding at the end thereof a new
paragraph to read as follows:
"(8) Grr *TO SPOUSE.-

"(A) In General.-Where the donor transfers during the
calendar year (and after the date of the enactment of the
Revenue Act of 1948) by gift an interest in property to a
donee who at the time of the gift is the donor's spouse-an
amount with respect to such interest equal to one-half of its
value.
"(B) Life Estate or Other Terminable Interest.-Where,
upon the lapse of time, upon the occurrence of an event or contingency, or upon the failure of an event or contingency to
occur, such interest transferred to the spouse will terminate or
fail, no deduction shall be allowed with respect to such
interest"(i) if the donor retains in himself, or transfers or has
transferred (for less than an adequate and full consideration in money or money's worth) to any person other
than such donee spouse (or the estate of such spouse),
an interest in such property, and if by reason of such
retention or transfer the donor (or his heirs or assigns)
or such person (or-his heirs or assigns) may possess or
enjoy any part of such property after such termination
or failure of the interest transferred to the donee spouse;
or
"(ii) if the donor immediately after the transfer to
the donee spouse has a power to appoint an interest in
such property which he can exercise (either alone or in

-~

83 Stat. 147.
2s U. S. 0. t1004t();
supp. Isi1004 (a).

126

PUBL o LAWS--cH. 168-APR. 2,1e8

[62 STAT.

conjunction with any person) in such manner that the
appointee may possess or enjoy any part of such property
after such termination or failure of the interest transferred to the -donee spouse. For the purposes of this
clause the donor shall be considered as having immediately after the transfer to the donee spouse such power
to appoint even though such power cannot be exercised
until after the lapse of time, upon the occurrence of an
event or contingency, or upon the failure of an event or
contingency to occur.
An exercise or release at any time by the donor, either alone
or in conjunction with any person, of a power to appoint an
interest in property, even though not otherwise a transfer,
shall, for the purposes of clause (i) of this subparagraph, be
considered as a transfer by him. Except as provided in subparagraph (E), where at the time of the transfer it is impos-

sible to ascertain the particular person or persons who may
receive from the donor an interest in property so transferred by him such interest shall, for the purposes of clause
(i) of this subparagraph, be considered as transferred to a
person other than the donee spouse.
"(0) Where the assets out of which or the proceeds of
which, the interest transferred to the donee spouse may be
satisfied include a particular asset or assets with respect to
which no deduction would be allowed if such asset or assets
were transferred from the donor to such spouse, then the
value of the interest transferred to such spouse shall, for the
purposes of subparagraph (A), be reduced by the aggregate

Ant, p.125.purposes

value of such particular assets.
"(D) Joint Interests.-If the interest is transferred to the
donee spouse as sole joint tenant with the donor or as tenant
by the entirety, the interest of the donor in the property
which exists solely by reason of the possibility that the donor
may survive the donee spouse, or that there may occur a
severance of the tenancy, shall not be considered for the
of subparagraph (B) as an interest retained by the
donor in himself.
"(E) Trust With Power Of Appointment In Donee
Spouse.-Where the donor transfers in trust an interest in
property, if under the terms of the trust his spouse is entitled
for life to all the income from the corpus of the trust, payable
annually or at more frequent intervals, with power in the
donee spouse to appoint the entire corpus free of the trust
(exercisable in favor of such donee spouse, or of the estate
of such donee spouse, or in favor of either, whether or not
in each case the power is exercisable in favor of others), and
with no power in any other person to appoint any part of the
corpus to any person other than the donee spouse-"(i) the interest so transferred in trust shall, for the
purposes of subparagraph (A), be considered as trans-

4ne, p. 1M.

ferred to the donee spouse, and
"(ii) no part of the interest so transferred in trust
shall, for the purposes of subparagraph (B)(i),be considered as retained in the donor or transferred to any
person other than the donee spouse.
This subparagraph shall be applicable only if, under the
terms of the trust, such power in the donee spouse to appoint
the corpus, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.

S-'

-

62 STAT.]

-

__________________________

127

80Tn CONG., 2D SESS.-CH. 168-APR. 2,1948

"(F) Community Property.(i) A deduction otherwise allowable under this para.
graph shall be allowed only to the extent that the transfer
can be shown to represent a gift of property which is
not at the time of the gift, held as community property
under the law of any State Territory, or possession of the
United States, or of any foreign country.
"(ii) For the purposes of clause (i), community property (except property which is considered as community
property solely by reason of the provisions of clause
(iii)) shall not be considered as 'held as community property' if the entire value of such property (and not merely
one-half thereof) is treated as the amount of the gift.
"(iii) If during the calendar year 1942 or after the date
of the enactment of the Revenue Act of 1948, property
held as such community property (unless considered by
reason of clause (ii) as not so held) was by the donor
and the donee spouse converted, by one transaction or a
series of transactions into separate property of the donor
and such spouse includingg any form of co-ownership by
them), the separate property so acquired by the donor
and any property a uired at any time by the donor in
exchange therefor (by one exchange or a series of
exchanges) shall, for the purposes of clause (i), be considered as 'held as community property'.
"(iv) Where the value (at the time of such conversion)
of the separate property so acquired by the donor
exceeded the value (at such time) of the separate property so acquired by such spouse, the rule in clause (iii)
shall be applied only with respect to the same portion of
such separate property of the donor as the portion which
the value (as of such time) of such separate proerty so
acquired by such spouse is of the value (as of such time)
of the separate property so acquired by the donor."
SEC. 873. TECHNICAL AMENDMENT.

Section 1004 (e) of the Internal Revenue Code is hereby amended
to read as follows:

83 Stat. 148.
26 U. 8. 0. 61004 (0).

" (0) EXTENT or DEDUorloNs.-The deductions provided in subsec-

tion (a) (2) or (8)or in subsection (b) shall be allowed only to the
extent that the gifts therein specified are included in the amount of

gifts against which such deductions are applied."
SEC. 874. GIFT OF HUSBAND OR WIFE TO THIRD PARTY.
Section 1000 of the Internal Revenue Code (relating to imposition
of gift tax) is hereby amended by adding at the end thereof a new
subsection to read as follows:
"(f) Grr OF HUSBAND OR WIF To THIR PARrT.-

53 Stat. 144; 68 Stat.
71.
2o U. 8. 0. 1iooo
, 11oco.
Syg.Atsp. 1I5.

"(1) CONSIDERED AS MADE ONE-HALT BY EACH.-

"(A) In General.-A gift made after the date of the
enactment of the Revenue Act of 1948 by one spouse to any
person other than his spouse shall, for the purposes of this
chapter, be considered as made one-half by him and one-half
by his spouse, but only if at the time of the gift each spouse
is a citizen or resident of the United States. This subparagraph shall not apply with respect to a gift by a spouse of an
interest in property ifhe creates in his spouse a power of
appointment, as defined in subsection ( of this section,
over such interest. For the purposes of this subsection an

*1'
- ~

~-.

~1S

IwAftb4'U'"o

(&

-4-4

128

.,-

---

Al -1-l-&-t- -

.;Q
&WASOM

PUBLIC LAWS-Of, 168-APR 2,1948

[62 STAT.

individual shall be considered as the spouse of another individual only if he is married to such individual at the time
of the gift and does not remarry during the remainder of
the calendar year.
"(B) Consent of Both Spouses.--Subparagraph (A) shall
be applicable only if both spouses have signfied (in accordance with the regulations provided for in paragraph (2))
their consent to the application of subpara graph (Ain the
case of all such gifts made during the calendar year by either
while married to the other.
"(2) MANNER

63 Stat. 140.
20 U.S. 0. 11012(a).

AND TIME OF SIGNIFYING CONSENT.-

"(A) Manner.-A consent under this subsection shall be
signified in such manner as is provided under regulations
prescribed by the Commissioner with the approval of the
Secretary
"(B)'Time.-Such consent may be so signified at any time
after the close of the calendar year in which the gift was
made, subject to the following limitations"(i) the consent may not be signified after the 15th
day of March following the close of such year, unless
before such 15th day no return has been filed for such
year by either spouse, in which case the consent may not
be signified after a return for such year is filed by either
spouse;
"(ii) the consent may not be signified after a notice
of deficiency with respect to the tax for such year has
been sent to either spouse in accordance with section
1012 (a).
"(3) REVOOATION OF CoN8ENT.-RevOcation of a consent previously signified shall be made in such manner as is provided under
regulations prescribed by the Commissioner with the approval
of the Secretary, but the right to revoke a consent previously
signified with respect to a calendar year"(A) shall not exist after the 15th day of March following
the close of such year if the consent was signified on or before
such 15th day; and
"(B) shall not exist if the consent was not signified until
after such 15th day.
"(4)

JOINT AND SEVERAL LIABILITY FOR

TAx.-If the consent

required by paragraph (1) (B) is signified with respect to a
gift made in any calendar year the liability with respect to the
entire tax imposed by this chapter of each spouse for such year
shall be joint and several."

TITLE IV-ADJUSTED GROSS INCOME OF
LESS THAN $5,000
SEC. 401. INDIVIDUALS WITH ADJUSTED GROSS INCOMES OF LESS
THAN $5,000.
a
go

U.

6 S

.

(a) IN GENERAL.-Section 400 of the Internal Revenue Code

0.o.
1400.

. Ita.

0

(relating to optional tax on individuals with adjusted gross incomes
of less than $5,000) is hereby amended to read as follows:
"SEC. 400. IMPOSITION OF TAX.
"In lieu of the taxes imposed by sections 11 and 12, there shall be
levied collected, and paid for each taxable year upon the net income
of each individual whose adjusted gross income for such year is less

m

8On CONG., 2D SBESS.-OH. 168-APR. 2,1948

62 STAT.]

129

than..$5,000, and who has elected to pay the tax imposed by this
supplement for such year, a tax as follows:
"If adjusted And the number
groes In.
of exemptionsIlecome 1&-

If adjusted
rs I"n*And
come I&-

o
the number of exemptions le-

2
But
less

At

112
At
h1

8

4or
At
more least
At

IIe
I
I

I

0 $0
a 0
11 0
7
10
14 0
14
18
22 0
26 0
20 0
33 0
7
925 37 0
928
950 401 0
050 P975 44 0
978 I 000 48 0
1000 ) 1025 62 0
1025 1 050 55 0
0050 1,076 69
0
1,076 1,100 03 0
1,100 1,125 S67 0
1:125 10
70 0
1.160 5 ,175 74 0
1,176 1200 78 0
0
1,200 1,225 82
1,226 1,o260 S85 0
1,250 1,275 89 0
0
1276 1,300 93
300 1,825 968 0
1325 1,350 100
1
4
1,376 104
1375 1,400 108
8
1,400 1,425 111 12
1425 1,450 115 16
,450 1475 119 19
1476 1,500 123 23
1,00 1,525 126 27
, 626
130 31
1560 1676 134 34
1600 138 38
16265 141 42
16256
145 45
1160 1676 149 49
1,8500' 1700 153 63
'675
1725 1586 67
1760 160 60
1800 1,776 164 64
1,775
1,25
167 8S
1,8D) 1,825 171 72
I: 1,850 176 76
m
1,850 1,875 179 79
1,875
182 83
950
1,9Ow11925 186 87
76
190 g0
1960 19765 194 94
1,975 2000 107 98
100 %025 201 101
2025 2050 205 106
%,078 209 109
2100 212 113
00 2,126 216 11
250 2,160 220 120
2175 223 124
%21
%200 227 128
200 2,2285 231 131
2176%260 235 136
2,250 %2786238 130
2;,275 %300 242 143
Mao0 2,325 246 148
0
$C
7D
O06
7245
76C
0
774 6
800
8215
80
876

I

$876
700
725
760
6
80
825
860
875

~albe--

$0 $0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0
2
0
6 0
0
13 0
171 0
21 0
24 0
39
28
0
32
0
0
0
43 0
47
0

3

Andif And And if And

But
1 othr
lemsjoint
Ioteroher

itsaooher
fa
4 51617
jointIMore
JOInt 1Joint
Tu

$2,32 5 $2, 350 $260
$160
253
154
2 3500 2,87
6
157
8,71 2,400 267
%400S2,425 261
161
%,42Z62, 450 12654
165
%450 D476 i269
169
%476 2,600 272
172
254 2, 525 276
176
628 2,560
280
180
184
6506 2,575 283
678 2,600 287
187
101
2,600D 2,625 291
5 %650 291
105
199
) %675 298
302
202
206
386
%700
210
%725 2,760 309
313
214
%760
317
,776
217
221
2, 825 321
%825
324
225
228
2,850i ,875 328
232
2878 2,000 332
%000
336
236
926
340
240
243
12%950 345
349
976
247
00
356
23
3000
364
260
268
3100 3,050 373
3160 3,100 3821
276
283
3,250 1 3600 391
50 399
200
2,
~
3300
298
408
3350
305
417
312
3400 3,300 425
320
3,60 434
4,50 443
3,600
327
336
,600 452
344
3650 460
650 3,560 409
353
3700
3621
700
478
%760 3,50 486
370
379
3,OW) 495
%850
604
388
396
3950 6131
405
4,000 521
414
4,000 4,050 530
423
4,050 4,100 639
4100
431
547
150 4,50 856
440
440
1200 4260
200
4,250 4,300 574
467
4,00
468
682
4,360 4400 591
476
4,400 4,460 600
483
4,460 4, 8W 608
492
4,500
617
601
460 4,600 626
510
4,600
635
518
4,650 4700 643
527
4700
662
5360
4,760 4,M~ 661
4800
544!
4,800 4850 660
653
4,80
00000678
662
40900 4,950 687
671
679
4050 5,0001 693
I

turn

mor

The tax shall be-

-

$150
164
167
161
165
169
172
176
180
184
187
191
195
199
202
206
210
214
217
221
225
228
232
236
240
243
247
253
260
268
276
283
290
298
305
312
320
327
336
342
350
357
365
372
380
387
395
402
410
417
425
432
439
447
454
462
469
477
484
492
499
607
814
622

629

637
644

8or

$50
64
68
62
65
69
73
77
80
84
88
92
95
99
103
106
110
114
118
121:
125
129
1331
138
140
144
148
153
161
168
176
183
190
198
205
213
220
228
235
243
250
258
265
273
280
288
303
310
317
325
332
341
350
360
367
376
385
393
402
411
420
428
437
446
454
4631
p

$50
64

58

---

111$0
00

0 0
0 0
0 0
0 0
0 0

$0 $0 $(
0

04

0

0

c

6
0
0
c
65
0 0 C
69
73
0 0 0
77
D 0 0 0 0
0 0 0 0 0
80
D 0
84
0 040
S0
88
0 0 0 0 a
92
0 0 0 0 0
95
0 0 0 0 0
0o
0 0 0 0 0
103
3 0 0 0 0
106
7 0
0 0 0
110
1 0
0 0 0
114 14 0
4
18 0 0 0 0
118
8
0
0
121 222 0
0 0 0
12 24 0
1
0 0 0
129 261 0 0 0 0
9
133
3 0
0 0 0
136 3 7 0
00
0
140 40
D0
0 0 0
1441 44
10
0 0 0
148 71 0 0 0 0
48
153 5410
0 0 0
161 61
0 0 0
168 6850
0 0 0
176 76 10
0 0 0
183 8310 0 0 0 0
190 01 0 0 0 0
198
0 0 0
1 0
205 106
O 0 0
213 113 14 0 0 0
220 121 21 0 0 0
228 128 29 0 0 0
168
235 136 ~36
0
0
243 143 44
0 0 0
20 161 51 0 0 0
258 168 69
0
0
265 166 166
0
0
273 173 '73
0 0 0
280 181 81 0 0 0
288 188 88 0 0 0
295 125 96 0 0 0
303 203 103
4 0 0
310 210
11
0
0
218 118 10 0
317
0
325 225 126 26
0
0
332 233 133 34
0
0
340 240 141 41
0 0
347 248 1148 40 00
255 17
M 56
0
0
3862
263 163 63
0
0
370 270 171 71
0
0
377 278 178 78
0
0
2865 186 86 0 0
203 193 03
0
0
400 300 12001 1
101
1
0
407 308 1208 1108
0
0
416 316 216 1
116 18
0
223 1
123 24
0
430 330 230 1
131 81 0
437; 337
138 8o 0
46M0
444: 3481
12451 146

(b) TAXATsm YEAsro WIoH AlrOmza.*-The amendment made
by tls 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.
6870O*-49-PT. I-9

Pot,.1

130

PUBLIC LAWS-OH. 168-APR. 2, 1948

[62 STAT.

TITLE V-REDUCTION IN WITHHOLDING OF
TAX AT SOURCE ON WAGES
57 Stat. 128.
26U.S.0.11622 (a)l
(b) (1).

SEC. 501. PERCENTAGE METHOD.
Section 1622 (a) and section 1622 (b) (1) of the Internal R avenue
Code (relating to percentage method of withholding) areI hereby

amended to read as follows:

"(a) REQUIREMENT OF WrIHoLDINo.-Every employer n making
payment of wages shall deduct and withhold upon such wagess a tax
equal to 15 per centum of the amount by which the wages exce ed the
number of withholding exemptions claimed multiplied by the amount
of one such exemption as shown in subsection (b) (1).
"(b) (1) The table referred to in subsection (a) is as follows:
"Percentage method withholding table
An
mount of
with.
o me
Wedding
exempton

Pay-roll period
W eekly.. .. . . .. . . . . . . . . . .. . . . . .. . .. . .. . . . . . . . . . . . .
MWeekly..........................................................................
seethly..................................................................................
eM iont .....
...................................
..
Muartery .................................
..............................

$13.00
28.00
K .00
187.00
83300
W87. 00
1.80"

Annual........................................-................
......................
Daily or miscellaneous (per day of such period)............................................

SEC. 502. WAGE BRACKET WITHHOLDING.
57 Stat. 129.
26 U. S. 0. 11622 (c)
(I).

The tables contained in section 1622 (c) (1) of the Internal R avenue
Code (relating to wage bracket withholdmig) are hereby am
ended
to read as follows:
"If the pay-roll period with respect to an employee Is weeklyAnd the wages are-

And the number of withholding exemptions claimed I&-

1 2j

-

.

But less
At eastle'tthan
At

)13.

)18.
19.

25.
)28.
2.

1o....
)27....

41 .......
)28...

)20....

13
S14......

8I

9

10 or
more

The amount of tax to be withheld shall beIssaI
wage$

$0
$0
.10 0
.30 0
.40 0
.60 0
.70 0
.80 0
1.00 0
1.10 0
1.80 0
1.40 0
1.60 0
1.70 0
1.90 0
2.00
.10
2.20
.30
2.30
.40
2.50
.60
2.60
.70
2.80
2.90
3.10
1.
20
3.20
1.30
3.40
1.60
3.60
1.60
3.70
3.80
4.00 2.10
2.20
8.20 4.10 2.40
2.80
4.80 2.70
4.60
8.80 4.
2.80
8.80
10
4.90 6.0
7. 10
7,20 8.80 3.40
7.40
.60

$0

$2.00
2.20
2.30
18.
17.
2.50
18... 2.60
2.80
20... 2.00
21... 3.10
3.20
3.40
24.
3.50
3.70
$26.
3.80
4.00
$27.
4.10
4.30
4.40
4.60
4.70
4.90
5.00
5. 20
8.30
8.60
6.60
33 ......

42
...
I

3

I
-mm",

.20

.9
1.10
1.20
1.40
1.40
1.60

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0

0

-Jbdmmv

,

-

.
-

-

- -

--

-,- -

-WAIMPM

-

-IR-P.6

-,

-

131

80TH CONG., 2D SESS.-CH. 168-APR. 2,1948

62 STAT.]

"If the pay-roll period with respect to an employee Is weekly---Continued
And the wages are-

At least

And the number of withholding exemptions claimed I&-

0
But lessmore

4

3

2

1

8

57

9

10 or

The amount of tax to be withheld shall beAA0.
.
$5.......2.
2........
........

........
........

1-......$7.80$60$3.70$1.80$0
$0
7.70 6.80 3.90 1.09
0
0
......
7.80 6.90
4,
2.1 0 .20 0
.
0........5......8&0 120
6.10
4.20
.30 0
.50 0
.1...... 6. 20 4.30 2.40

. &
8.40

670......

.40 4.00 2.70
4.80 2.70

&0

8......800........
.
6.70
4.80 280
9........
:9......&.70
&80
4.&0 8.00
3.10
......
08.90 7.00 5.10
1 .... 0....
NO.....
.....
9.10 7. 2068.30 3.40
2........
......
9.40 7.80
6860 3.70
St........S......9.70
7.80 690 4.00
........
8...... 10.00 8.10 6.20 4.30
8........
7......1.30
8.40 &50
4.60
70........
...... 10.60 8. 70 6.80 C.00
0.007.10
5.&20
$72........74...... 10.90
74 ........ 7...... II. 20 9. 30
7. 40
6.680
78.......78...... 11.50 0.608 7.70 6&80
78 ........
8...... 11.80 0.90
8.00 &10
6 40
8.
8...... 110 10.20
...... 1240 10.20
8. 6 _0
7.00
8......
70 10.80 8.00
$84 ........
8......1300 11.10
3........
9.20 7.30
90...... 13.30I11.40 09.60 7.860
00........92...
13.60 11.70 9.80
7. 80
1.:.......
4......13.90 12.00 10.10 8.10
94........98...... 14. 20 12.30 10.40 8.40
S......14.60 12.60 10.70 8.70
O........
........
9.00
100....... 100.... 14.80 12.90 11. 50
105...1530 13. 40 11.00
0. 60
105.......$110...
18.10 14.10 12.20 10.30
115..
16.80 14.90 13.00 11.10
110. .
116.......$120..... 17.00 1860 18.70 11.80
120. .. $125...
18.30 16.40 14.80 12.80
125.......$130..... 19.00 17.10 16.20 13.30
130.......13.
19.80 17.00 16.00 14.00
136.......
140..... 20.80 18.60 16.70O14.80
140. ..
14..... 21.30 19.40 17.60 1650
145.......
160..... 22.00 20.10 18.20 16.30
23.20 21.20 19.80 17.40
180. .
100..
180.......n7..... 24.70 2270 20.80 18.90
. 10 24.20 22.30 20.40
170.......180.
180......190.
27.80 26.70 23.80 21.90
190
29.10 27.20 26.30 23.40

.

.60 0
0
.80

$0
0
0
0
0

$0
0
0
0
0

$0
0
0
0
0

$0
0
0
0
0

0

0

0

0

0

0

.90
1.10
1.20
1.80
1.80
2.00
2.30
2.60
2.00
8.20
8. 0
8.&80
4.10
.40
4.70
600
&.30

0
0
0
0
0
0
0
0
0
0
.10
0
.40
0
.70
0
1.00 0
0
1.30
1.040
0
1.9000
2.20
.30
.460
2.60
2.80
.90
.10 120
3.40 1.60

0
0
0
0
0
0

&90
6.20
6.80

4.00
4.30
4.60
4.00
&.20

.20
.60
.80
1.10
1.40

&60
6.80
7.10

7. 70

8.40
9.10
9.90
10.60
11.40
12.10
12.90
1380
14.40
16.50
17. 00
18.80
20.00
21.80

3.70

1.80

5. 70

8. 80

2.10
2.40
2.70
3.00
3.30

6.80
4.60
7.20 &.30
8.00
6.10
8.70
6.80
9.80 7.60
10.20 8.30
11.00 9.10
11.70 0.80
12.60 10.80
13.810 11.70
15.10 13.20
16.80 14.70
18.10 18.10
19.60 17.60

0
0
0
0
0
0
0
0
0
0

0

0

0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0

0

0

2.70
8.40
4.10
4.90
6860
8.40
7. 10
7.90
8.60
9.70
11.20
12.70
14.20
16.70

0
0
0
0

0
0
0
0
0
0
0
0
0
0

0

1.090

$0

0

0

0
0
0
0
0
0

.70
1.60
2.20
3.00
3.70
4.80
6.20
6.00
6.70
7.80
9. 30
10.80
12.30
13.80

0
0
0
0
0

0

0
0
.30
1.10
1.80
2.60
3.30
4.10
4.80
8.90
7.40
8.90
10.40
11.90

0

0
0
0
0
0
0

0

0
0
0
0
0
.60
1.40
210
200
4.00
&.60
7.00
8.80
10.00

16 percent of the excess over $200 plus-

$200 and over...... 29.00128.0012&.0012S.10122.201 20.30 1&401 011400112.60110.70
"If the pay-roll period with respect to an employee Is biweeklyAnd the number of withholding exemptions claimed Is-

And the wages are-At least

But less
t han

01 I1 21

32...
34...
42.....

44

38...

:48...
40...

46
88
725 ....

42...
44...

61

The amount of tax to be withheld shall be36% of

128...

41

3j

$4.00
4. 30
4. 60
4.90
.20
6.80
6.80
6.10
6.40
6.70
7.00
7.30
7. 0
7.00
8.20
8. 80
8. 80

0.10

9.40
.o.:....
0.70
10
7......

$0

.20
.80

$0

6.00

0
0
0
0
0
0
0
0
0
0
0
0
0
.80
.60:
.00
1.20

60
&20

2.0
zoo
2.

1.40
1.70
2.00
2.30
2.80
2.00
3.20
3.60
3. 80
4.10
4.40
4.70

6 80

1. 0
*

8.290

$o0
0
0
0
0
C.
0
0
0
0
0
0

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0I
0
0

0
0

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0l
0l

8j

910

or

more

9064-1-

132

PUBLIC LAWS--OII 168-APR 2,1948

(62

STAT.

"It the pay-roll period with respect to an employee Ia biweekly-Continued
And the wages are-

And the number of withholding exemptions claimed I*-

At least But mes 0

F

1

I1114151017 18
:
2 83

910or
m8or8e

The amount of toi to be withheld shall be-

476......$1120
$7.40 $3.60 $0
$0
$0
$0
$0
$0
8 -...... 160
1
7.70 3.80
0
0
0
0
0
0
8........8......11.80
8.00
4.10
.30
0
0
0
0
0
1822......1210 4.40
8&.30
.60
0
0
0
0
0
8184......12.40
&60
4.70
.90
0
0
0
0
0
$88...... 1270
2........ 8,90
6.00
1.20
0
0
0
0
0
$I........$......
13.
130
9.60
60
1.80
0
0
0
0
0
.
1360
9. 80
0
90
2.10
0
0
0
0
0
042.....
.
13.90 10.10
6.20
0 .440 0
0
0
0
$4 ...
.....
14.20 1040
6.60
2.70
0
0
0
0
0
i6..
1
14.50 10.70
6.80
83.00
0
0
0
0
0
$4..
$11.
14.80 11. 00 7.10
3.30
0
0
0
0
0
$100... $102.....1&.101I,30
7.40
3.020 0
0
0
0
0
102......
104.....
&40 1.0
1
7
10
390
.10
0
0
0
0
10....
1....1&,701.90
10.00
4.20
.400
0
0
0
124.....108.... 10012.20
.0
.3 0
3.70
0
0
0
0
108. .$. 110..... 1430 12.60
1860 4.80
1.0
0
0
0
0
110.. . 112.....
60012.80
0
810
4.730 0
0
0
0
112.......$14.....
60 15.8 10.10
40
.& 1.60
0
0
0
0
114.
. $.11..... 17.20 13.40
0.60
&70 1.90 0
0
0
0
116.......
.
17.0 13.60 1.0
.0500 2.720
0
0
0
0
118.......120..... 17.80 18,80 14010
0.9
7.60
30
0
0
0
120..
124.
120 19. 40 10
3.
&.00
7.0
.90
0
0
0
124..
128.... 180 1800 11.20 7.30
3.60
0
0
0
0
128..
132..... 120. 40 156 .0 1.0 0
8.910
5. 30 0
0
0
132..... 136..... 20 00 1&20 I2.40 1.30
9.0
5.60
.0
0
0
136
$....
140..... 20.60
1 80
13.900 10 .30
1.20
0
0
0
140.....
...
21.20 17.40 1.60
5.70 1.90
2.10
0
0
0
144...
148..... 21.0 8.0 18.30 0
14. 50
10.
08 .70 0
0
0
1
.......
18..
27240 23.40 19.60 15.70 1.907.10
3.30
0
0
0
12....... 188....23. 00 19.20 1
11.50
5.30 7.70
3.90
0
0
0
16.......
160.... 23.60 19.80 1
12.10 8. 30
5.90
4.50
.60
0
0
0
0
8.70
9.00
1.20
160.......
1642..... 24.20 20. 40 180 12.70
196......206....624.80 21.00 17.10 13.30
9.40 1.60
1.80 0
0
168.......
172..... 2 40 21.60
.0
1.910 130. 10
& 20 2.40
0
0
117.....
26.00 22.20
8.
30 14.0 10.70
.80 3.00
0
0
1703.......318.....
8060 22.80 25.00 22.10 11.30
7.40
3.60
0
0
184..... 27.20 .23.40
.0
.0
11.00 5.&0014.20
. 40
0
18.......
188..... 27.80 2.0 20.910 1250
13.12.
60
4.
4.80
1.00
0
188.......
192..... 28.40 24.60 20.70 1.00 13.1
9.20 1.10 11.60
0
13.7
0.80
&00
2.20
0
192.......
196..... 29.0 25. 20 21.30 17.1
196 .......
29.60 32003.....
25.8800.190
18.0114
10. 40
.60
2.80 0
0
1.80
7.60
....... 210..... 30.60
10.......1220..... 32.210 20.80 3024.50 2.60 2& 80 11.60
20 23.00 1.10 1.30 14.00
9.10 17.30
1.40
2....... 230..... 33. 60 2. 80 26. 00 22. 10 18. 3
14.640 10.16
& 80 & 00
440..... 31.30 27.40 23.60 19.
85.10
1.0 2.10
1
.0
4.0
4....... 250..... 3X.60 32.80 28.00 2&.10 21.30 17.40 13.60 9.
.00
60.....
3ft10 34.30 30.40 2.60 22.80
8.300 15.10 11.
80
4....... 270..... 39,60 35.80 31.90 28.10 24.30 20.40 1.00 12.1 190
.......
80
41.10 37.30 33. 40 20.60 2. 80 21.690 181
14.8010, 40
2....... 200..... 42.60 38.70 34.0 81.10 27.30 23.40 1.60M1580 11.0
2....... 300..... 44.10 40.20 3X.40 32.60 28.70 24.90 21.10 17.30 13.40
4....... 20..... 4&.30 42.50 38.70 34.80 31.00 27.20 23.30 10.80 15.7O
3....... 340..... 40. 30 45.650 41.640 37. 80 34.00 80 10 26. 30 22.850 18. 70
40...
360 ..... 162.3048. 50 44. 60 40. 80 37. 0
33. 10 29. 30 25. 60 21. 60
80.....630 81.40 47.60 43.80 40.00 38.10 32.30 28.50 24.60
. .
800.....M58.30 54.40 00.60 48.80 42.90 30.10 35.30 31.60 27.60

$0
0
0
0
0
0

$0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.80
2.10
3.60
&.10
7.80
8.10
0.60
11.80
14. 80
17. 80
20.80
23.80

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.30
12.80
4.s0
&5.8
8.00
11. 00
14. 00
17.00
20.00

13.00 1.50 0 0 0 0 0 0
0.20 0
6.30

0

0

15 percent of the excess over $400 plus-

$400 and over........169.801

65.901

52.10

3.80132.00
I148.30 129.10
44.40 40.601

25.30 21.60

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

~'

~r

~

- .~*

-

~
mul

M

.-

&&

pw-

A-

-

k-

- -

Am-

62 STAT.]

80TH

A4

khb moluib-

-

- ,

-

CONG., 2o 8E)S.-OH. 168-APR. 2,1948

138

"If the payroll period with respect to an employee 1o semimonthly-Continued
ages areAnd the wo

And the number of withholding exemptions claimed I-

B0t
Bu
lwmore O

At least

3

2

l

than

4

5

or

9,10

8

7

6
8

The amount of tax to be withheld shall be-

....... $8.20
. 8.50
8. 80
2..
9.10

$4.10

$0
80
C40...
.20 0

0
4.70 .... .50
5.00
.80 0
5.30 .9.40
1.10 0
1.40 0
5.00 .9.70
1.70 0
5.90 .10.00
&e
...... 10.30
2.00 0
6.20
....... 10.60 &.g0
2.30
0
...... 10.90 6.80
6......11. 20 7.10 2.90
11.80
$.20 0
7.40 .......
11.80 7.70 .......
:102........
:104........
12.10 8.00 .......
8.80 0
586........
12.40 8.30 .......
4.10 0
12.70 8.50 .......
10O........
4.40
.20
13.00 8.80 .......
:110........
4.70
.50
...... 18.30 9.10 5.00
n2t........
.80
...... 13.60
114........
9.40
5.30 1.10
0.70 .13.90
1116........
80 1.40
14.20 10,00 .......
8.90
1.70
I70D........
0.20 2.00
2........ 100..... 14.80 10.30 .......
14.80 10.60 8.50 2.30
742........ 102..1.10 10.90
6.80 2.00
7.10 2.90
76 ........ 104...:1&.40 11.20
108.....15.70 11.50 7.40 8,20
784.......
108.....16.00 11.80 7.70 8.50
110.....1.30 12.10 8.00 3.80
SO0........I 112.....16.00 12.40
8.30 4.10
S ........ 1 114..... 16.90 12.70
8.00 4.40
S68........1 116..... 17.20 13.00
8.60 4.70
S72........ 118..... 17.50 13.30
9.20 5.00
9.50
5.30
ISD........ 120..... 17.80 13.60
124.....18.20 14.10 0.90 5.80
0 ........ 128.....18.80 14.70 10.50
182........
6.40
188........ 132..... 19.40 15.30 11.10
7.00
$926........ 136.....20.00 16.0
11.70 7.60
140.
20.60 16.50 12.30 8.20
Io........
8.80
100 ....... 144...:21.20 17.10 12.90
9.40
10 ....... 148..... 21.80 17.70 13.80
120
....... 152.
22.40 18. 30 14.10 10.00
188.....23.00 18.60 14.70 10.00
120.......
100..
23.00 19.50 15.30 11.20
140.......
164.
24.20 20.10 15,90 11.80
1160.......
168...:24.80 20.70 16.80 12.40
1200.......
11 ....... $172..... 25.40 21.20 17.10 12.00
178..28.00 21.80 17.70 13.50
i180..... 26.0 22.40 18.30 It.10
23.00 .27.20 1470
18.90
128.......
12....... 18..... 27. 80 23.60 10.60 15.A
192..... 28.40 24.20 20.10 15.9
196.
29.00 24.80 20.70 1&.50
200..29.00 25. 40 21.30 17.10
1210.....30.80 20.0 22.30 18.20
220.....32.10 28.00 23. 80 19.70
140....
230.
33. 00 29.80 25.0 21.20
240.....35.10 31.00 26.80 22.70
160.....
260..... 36.60 32.60 28. 0 24.20
260.....38.10 33.00 29.80 25.00
70....39.40 35.40 31.30 27.10
280..... 41.10 36.00 32.80 28.00
M0..... 42.00 38.40 34.30 30.10
L00..... 44.10 30.00 35.80 31.60
320
..... 46.30 42.20 38.00 33.90
340..... 49.30 45.20 41.00
6.900
00.
2.30 480
44.00 39.80
O..85.30 81.10 47.00 42.80
00.5....
8.30 84.10 50.00 48.80
20.8....
1.30 67.10 63.00 48.80
40.
84.20 60.10 55.60 81.80
400.
07.20 63.10 88.90 84.80
480.....70.20 88.10 81.90 67.80
40.
73.M.20
89.101 84.9000.80
15

TO.TO1
70.00 66.40

$00 and over.

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
.80
.00
.90
1.20
1.60
2.20
2.80
3.40
4.00
4.60
5.20
.80
&.40
7.00

7.00

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
00
0
0
0
0
0
0
0
0
0
0
0
0
.0
1.10
1.70
2.30
2.90
3.50
4.10
4.00
52D
5.80
6.40
7.00

8.20
8.80
9.40
10.00
10.00
11.20
11.80
12.40
20
13.00
80
14.00 9.90
15.80 11.40
12.90
It40
20.00 15 .0
21.50 17.30
23.00 18.80
24.60 20.30
26.00 21.80
27.80 23.30
29.70 2&00
32.70 28.00
31.80
84.50
41.70 87.80
40.80
43.50
60.00 4&.50
60.60 49.50
63.00
560 52.50
percent of the excess

62.30

$0
80
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
.80 0
1.10 0
1.70 0
2.30 0
2.90 0
0
4.10 0
4.70
.60
5.70 1.00
7.20 3.10
00
870 4.
10.20 6.10
11.70
7.60
13.20 9.00
it470 10.50
16.20 12.00
17.70 13.80
19.20 15.00
21.40 17.30
24.40 20.30
27.40 23.20
80.40 26.20
33.40 29.20
38.40 32.20
39.30 3.20
42.30 38.20
4&.30 41.20
48.30 4C.20
over $500 plus-

j8.10 84.001 49.80

80

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
.40
1.90
3.40
4.900
6.40
7.60
0.40
10.90
13.10
16.10
19.10
22.10
2&510
28.10
31.00
34.00
37.00
40.00

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.
70

220

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

3.70
&.20
6.70

0
I-0
1.10

12.00
14.90
17.600
20.60
23.0
26.0
29.00
32.90
85.90

7.80
10.80
13.80
16.80
19.80
22.70
28.70
28.70
31.70

2.60

0.OD 4.80

41.80 87.40183.20

45.70

"If the payroll period with respect to an employee Is monthlyAnd the wages are-

AtTlhetmoe
than

And the number of withholding exemptions claimed Is-

ot t b

.

A'o
1.00

9. 80

Wil

s

b

amount of tax to be withheld shall be-.

______The

0

00

$0

I0
0

-

134

PUBLIC LAWS-CI. 168-APR. 2,p1948

[02 STAT.

"If the pay-roll period with respect to an employee Is monthly-Continued
And the wo areages
Atleast

But le
than

And the number of withholding exemptions claimed Is-

0 112 Te 31 ofa 5Jbe 61e 71 8 9 10 or
4
hamore
I
on
The amount of tax to be withheld shall be1~

SO

0
$9.9( $1.80
$0
$0
724........
0
10. 6( 2.20
0
0
11.1( S 2.80
0
0
11.70 8.40 0
0
8......
0
12. 30 4.00 0
0
0
12. 80 4.50 0
0
0
0
724........
13. 40 5 10
0
0
0
0
0
9...... 14 00
&
70
14.60
0
0
li4........ '104... 1&20 &.00
0
0
'108.....
1&80
0
0
7.80
08.......
112..... 1&. 40 8. 10 0
0
0
112.......
17.00
8.70
.40
0
0
0
0
12.....
9, 30 1.00
12D.......
0
0
12..... 18. 20 9,900 1.80
124.......
)
0
0
18. 80 10.50 220
108....... 148..
128.......
0
0
152..
2.80
172..... 19.40 11.10
132.......
.40
0
1...... 20,00 11.70
1118....... 180..
20.60 12.30
4.00
0
140......
1160....... 184..
. 60
0
104.....
10 ..... 21.20 12.90
21. 80 18.50
. 20
0
1124....... 168..
148......
22.40 14.10
.80
0
23.00 14.10
8.40
0
1132....... 140..
11..... 23.60 S15.30
7.00
0
0
24.20 15.90 7.80
0
0
24.80 16.50 8. 20
0
0
144.......
0
172..... 2&40) 17.10 8.80
'50
172.......
0
178..... 28.00 17.70 9.40 1.10
2A.60 18.30 10.00 1.70
0
180.......
0
27.20 18.90 10.60 2.80
218
0
164..
1086.......
0
194.......
27.801 19.50 11. 20 2.90
0
18.80
160.......
28.401 20.10 11.80
80
0
152.
198.......
20.00 20.70
4. 10 0
0
12.......
29.601 21.30
470 0
220..
0
0
172.......
80.20 21.90 15.800 5,30 0
0
30.80 22.50 14.20
.00 0
0
0
12.....1 81.40 23.10 14.80 8180 0
32.00 23.70 15.40 7.10 0.0
0
218.......
32.60 24.30 18.00 7.70 0
0
220.......
8 0 0
0
224.
14..... I33.20 24.90 17.20
3. 80 25.80
8. 90
0
284..
34.40 2. 10 17.80 9.50
1.20 0
232.......
1,80 0
14..... f 8 00 28.70 1. 40 10.10
3M.0
40 0
27.30 19.00 10.70
8.0 28.20 19,90 11.60
0
0
37.60 29.30 21.00 12. 70 4.40 0
220..
8. 80 30.50 22.20 18 90
.60 0
284.
40.00 31.70 23.40 1&.10
8.80 0
41.20 32.900 24.80 1. 30 8,00 0
28...
2.......
42.40 34.10 25.80 17.50 14.40
9. 20
.90
43.60 3&.30 27.00 18.70 10.40 2.10
18.80
44.80
28.20 19.90 11.0
3.30
4. 00 37.70 29.40 21.10 I&60o .80
47.20
30.60 22.80
20..
48.40 40.9
31.80 23.60
49.60 41.
8.10
33.00 24.70
80.80 42.
34.20 25.90
9.30
62.00 43.70 35.40 27.10
10.50
280..
63.20 44.90 30.80 28.30 20.00 11. 70
20...
206. 218 84.40 48.10 37.80 20.50 21.20 19. 90
K860 47.308 30.00 30.70 22.40 14.10
8. 80 48. 60 40.20 31.90 23.80 15.30
88. 00 49.70 41.40 33.10 24.80 1. 50
59.20 60.90 82.00 34.30 8.00 17.70
42.80
3420
81.30 83.00 44.70 8. 40 2&.10 19.80
64.20 55.00 47.60 39.30 31.00, 22.70
3a 60
87.20 68.90 80.60 42.30 34.00 25.70
920... 70.20 61.00 83.80 4&.30 $7,00 28.70
48. 30 40.0
31. 70
.... 14 73.20 84.
81. 30 43
0... 1 78. 20 87.
..
34.70
79.20 70. 0
54.30 48.00 87.70
82.20 73.90
87.30 40.00 40.70
80.30 82.00 43.70
44.1... 86.20 78.90
8.10 79.80 71.50 63.20 84.0
48.60
92.80 84.30 78.00 67.70 5.40 61.10
98.0 00.80 82.00 73.70 85.40 87.10
04. 0 98. 30 88.00 70.70 71.40 83.10
10.80 102.30 94.00 85.70 77.40 89.10
16.80 108.20 99.00 91.60 83.30 76.00
12. 50 114.20 10&0
97.60 89.30 81.00
28.60 120,20 1
103.00 0&.30 87.90
34.60 125.20 1
117. 01 100.60 101.30 03.:0
40.40 132.10 1123.80 1
118.80 107.20 08. 00
129.80 1
46.40 138.10 1
121.50 113.20 104.90

0

0
-0
0

rr......F14

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.00
2.20
3.40
4.60
8.80
7.00
8. 20
9.40
11.80
14.40
17.40
20.40
23.40
2. 40
20.40
82.40
35.40
8.30
42.80
48.80
64.80
80.80
070
7270
7870
84.70
90.60
00.00

$0
0
0
0
0
0

0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.10
8.20

9.10
12.10
18.10
21. 10
24.10
27.10
30.00
34.80
40.80
48. 50
64.40
70.40
76.40
82.30
88.30

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0

0
0
0
0
0
0
0

0
0
0.
0
0.
0
0
0
.0
0: s
9.80
12.80
15.80
18.80
21.70
28.20
32.20
8.20
44.20
80.10
88. 10
62.10
68.10
74.00
80.00

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
00
0
0
0
0
0
1.80
4.50
7. 50
10.0
1. 40
17.00
23.00
29.90
3.00
41 80
47.80
83.80
69.80
85.70
71.70

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

2.20
&10
9.60
1&860
21.60
27.60
33.60
39.60
45.60
51.80
87.40
63.40

18 percent of the excess over $1,000 ptus-

00.601
0.40 1141.10 1132.80 1124.40 11.20 1107.90 1

$1,000 and ov

p

4

W

~A-,A

01.30

,A"; -z,

83.00 74.70f0.40

k

j

135

80TIH CON(I., 2D SESS.-OH. 168-APR. 2, 1948

62 STAT.]

"If the payroll period with respect to an employee Is a daily pay-roll period or a
miscellaneous payroll periodAnd the number of withholding exemptions claimed Is-

And the wages dl.
vided by the num.
ber of daysilasuch

periods are-

0

1

2

3

4

6

5

8

7

8

9

10 o

mor

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

At least AeBut less
than

$2.00....
$0
.05
$2.00...... $2.25.... $0.30
.10
$2.25...... $2.0.... .36
.40
.10
$2.50...... $2.76....
.45
.15
$2.75...... $.00...
.45
.20
3.00...... 3.26.....
.60
.25
$3.25......
.25
.65
$3.60...... 3.76....
.30
.60
$3.75......
.35
.60
4.00 ...... 4.25....
.40
74.0....
.65
4.25 ......
.40
.70
$4.50......
.76....
.45
.76
$4.76...... $.00....
.50
.75
$5.00...... $.25....
.80
.65
5.26......
.60....
.85
.65
.76....
5.50 ......
.80
.90
$5.75......
.00...
.65
.00
$6.00......
.25....
.95
.70
6.0....
.25......
1.00
.70
16.75....
-.o ......
6.75...... 7.00.... 1.05 .75
1.05
7.250....
.80
.85
1.10
900......
17.60....
7.25......
1.15
.85
$7.60...... 17.76....
.90
7.75...... $8.00.... 1.20
1.20
$0.00.....
1.26 1.00
825 ......
1.80 1.00
.10...... 8.76..
1.35 1.05
8.75 ...... 9.00....
1.85 110
19.00.....
1.40 1.15
$9.25......
1.45 1.15
9.0 ......
1.20
1.60
9.7...... 10.00...
1.65 1.25
10.00 .....
1.5....
21.00... . 1.60 1.35
11.00... . 1.70 1.40
1.60
.00 1.75
1.85
4 .50... 1.90 1.86
12.50....
1.65
12
13.00....
2.00 1.70
13.00...
$13.80....
2.05 1.80
1.00..... 14.00...
92.... 215 1.85
2.20 1.95
$15.00...
2.80 2.00
$16.60...
2.35 2.10
17.50..
16.00....
2.45 2.15
2.00.....
2.50 2.25
2.
30
16,0... 2.60
2165 2.40
18.00....
2.76 2.45
17.1...
2.5
17.... 2.80
14.00.....
2.90 2.60
2.05 2.70
19.00...
20.00....
3.05 2.80
1'.40...
1.00..... 20.00...
3.20 2.95
22.00....
3.35 3.10
.00.
$22.00... 3.50 3.25
3.40
2300 ..- 3.65
3.65
2.00... 3.80
3.95 3.70
25.00...
4.10 3.85
4.26 4.00
4.40 4.16

$0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
.05 0
.05 0
.10 0
.15 0
.20 0
.20 0
.25 0
.30 0
.05
.35
.10
.35
.40
.15
.16
.45
.20
.50
.25
.50
.30
.55
.60
.30
.35
.65
.40
.65
.45
.70
.45
.75
.50
.80
.65
.80
.60
.85
.60
.90
.65
.95
1.00
.70
1.05
.80
1.15
.85
.98
1.20
1.30 1.00
1.10
1.35
1.48 1.15
1.50 1.25
1.60 1.30
40
1.65 1.
1.76 1.45
1.80 1.55
1.90 1.60
1.95 1.70
1.75
2.0
2.10 1.85
2.20 1.90
2.25 2.00
2.35 2.05
2.40 2.15
2.50 2.26
2.65 2.40
.80 2.55
2.95 2.70
3.10 2.85
3.28 3.00
3.40 3.18
3.65 3.30
3.70 3.45
8.85 8.60

I4.00....
3.60....

I92.0....

10.Ii...

$0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
00
0
00
0
0
.05
.10
.10
.15
.20
.25
.25
.30
.85
.40
.45
.60
.60
.65
.75
.80
.90
.95
1.05
1.10
1.20
1.25
1.35
1.40
1.50
1.55
1.65
1.70
1.80

1:88
1.06S

2.10
2.25
2.40
2.15

170
2.85
8.00
3.15
3.30

$0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
.05 0
.06 0
.10 0
.16 0
.25 0.05
.80
.10
.40
.45
.20
.26
.5
.85
.60
.40
.70
.60
.75
.85
.6
.65
.90
1.00
.70
1.05
.80
1.15
.85
.0
1.20
1.30 1.00
1.10'
1.36
1.45 1.15
1.50 1.25
1.60 1.30
1.70 1.45
1.83 1.85
2.00 1.70
2.15 1.85
2.30 2.00
2.45 2.16
2.60 2.30
2.75 2.45
2.90 2.60
3.05 2.75

$0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0

.05
.15
.20
.30
.35
.45
.50
.80
.6S
.75
.80
.90
.95
1.05
1.16
1.30
1.46
1.60
1.75
1.90
2.05
2.20
2.38
2.50

$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.10
.15
.25
.80
.40
.48
.65
.60
.70
.76
.0
1.20
1.35
1.50
1.65
1.80
1.95
2.05
2.20

$0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
. 05 0
0
.10 0
.20 0
.23 0
.05
.35
.40
.15
.20
.60
.35
.60
.80
.76
.66
.90
1.06
.80
1.20
.05
1.35 1.10
1. 0 1.25
1.86 1.40
1.80
1.68
1.95
1.70

15 percent of the excess over $30 plus"4.60

$30.00andover.
I

I

4.201 8.051 8. 8.40j

3.101

18 2.U1 2.80W 1.76"
2.05

SEC. 503. EFFECTIVE DATE.

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

.:I:J~~~i~k
I

, , ,*~ "**~~

*4

136

[62 STAT,

PUBLIC LAWS-OI. 168-APR. 2, 1948

TITLE VI-FISCAL YEAR TAXPAYERS
SEC. 601. FISCAL YEAR TAXPAYERS.
69 Stat. 670.

U.S.0.1108.

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)1", and by inserting after su section (c) the
following:
"(d) TAXABLE YEARS OF INDIVIDUALS BEGINNING IN 1947 AND ENDING IN 1948.-In the case of a taxable year of an individual begin26 U.S.0.. fl
n12. ning in 1947 and ending in 1948, the tax imposed by sections 11, 12,
An12 p. uI, U4 and400 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."
JOSEPH W. MARTIN Jr

Speaker of the House of Repre8entative.
A H VANDENBERG
Presidentof the Senate pro tempore.
IN THE HOUSE OF REPRESENTATIVES, U. S.,

April 9, 1948.

The House of Representatives having proceeded to reconsider the
bill (H. R. 4790) entitled "An Act to reduce individual income tax
paments, and for other purposes," returned by the President of the
United States with his objections, to the House of Representatives, in
which it originated it was
Resolved, That the said bill pass, two-thirds of the House of Representatives agreeing to pass the same.
Attest:
Jonx ANDREWS
olerk.
I certify that this Act originated in the House of Representatives.
JOHN ANDREWS

Olerk.
IN THE SENATE OF THE UNITED STATES,

April £ (legislative day, Maroh 9), 1948.
The Senate having proceeded to reconsider the bill (H. R. 4700)
"An Act to reduce individual income tax payments, and for other
purposes", returned by the President of the United States with his
objections to the House of Representatives, in which it originated,
and passeA by the House of Representatives on reconsideration of the
same, it was
Resolved, That the said bill pass, two-thirds of the Senators present
having voted in the affirmative.
Attest:
CAnn1

A. LOEFFRn~