Page:United States Statutes at Large Volume 104 Part 2.djvu/876

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104 STAT. 1388-468 PUBLIC LAW 101-508 —NOV. 5, 1990 applicable contribution base (as determined under subsection (k))". (2) APPLICABLE CONTRIBUTION BASE. —Section 1402 is amended by adding at the end thereof the following new subsection: "(k) APPLICABLE CONTRIBUTION BASE.— For purposes of this chapter— "(1) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE.—For purposes of the tax imposed by section 1401(a), the applicable contribution base for any calendar year is the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year. "(2) HOSPITAL INSURANCE.— For purposes of the tax imposed by section 1401(b), the applicable contribution base for any calendar year is the applicable contribution base determined under section 3121(x)(2) for such calendar year." (c) RAILROAD RETIREMENT TAX.— Clause (i) of section 3231(e)(2)(B) is amended to read as follows: "(i) TIER i TAXES, — "(I) IN GENERAL.— Except as provided in subclause (II) of this clause and in clause (ii), the » term 'applicable base' means for any calendar year the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year. "(II) HOSPITAL INSURANCE TAXES. —For purposes of applying so much of the rate applicable under section 3201(a) or 3221(a) (as the case may be) as does not exceed the rate of tax in effect under section 3101(b), and for purposes of applying so much of the rate of tax applicable under section 3211(a)(1) as does not exceed the rate of tax in effect under section 1401(b), the term 'applicable base' means for any calendar year the applicable contribution base determined under section 3121(x)(2) for such calendar year." (d) TECHNICAL AMENDMENT.— (1) Paragraph (3) of section 6413(c) is amended to read as follows: " (3) SEPARATE APPLICATION FOR HOSPITAL INSURANCE TAXES. — In applying this subsection with respect to— "(A) the tax imposed by section 3101(b) (or any amount equivalent to such tax), and "(B) so much of the tax imposed by section 3201 as is determined at a rate not greater than the rate in effect under section 3101(b), the applicable contribution base determined under section 3121(x)(2) for any calendar year shall be substituted for 'contribution and benefit base (as determined under section 230 of the Social Security Act)' each place it appears." (2) Sections 3122 and 3125 are each amended by striking "contribution and benefit base limitation" each place it appears and inserting "applicable contribution base limitation". 26 USC 1402 (e) EFFECTIVE DATE. —The amendments made by this section shall »o*«- apply to 1991 and later calendar years.