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TITLE II.

SECTION 201. The Internal Revenue Code, as amended, is further amended hereby by adding, after subchapter B of chapter 9, a new subchapter to be known as subchapter B-1, to read as follows:

"SUBCHAPTER B-1 (PILOTS' RETIREMENT CONTRIBUTIONS ACT)

EMPLOYMENT OF PILOTS.

'PART I.--TAX ON PILOTS.

'SECTION 1550. RATE OF TAX.

"In addition to other taxes there shall be levied, collected, and paid from the income of every pilot a tax equal to seven and three quarters per centum of so much of the compensation, paid to such pilot after June 30, 1949, as foes not exceed $12,000 in ant calendar year.

"SECTION 1551. DEDUCTION OF TAX FROM WAGES.

"(a) REQUIRMENT.--The tax imposed by section 1550 shall be collected by the employer of the taxpayer, by deducting the amount of the tax from the compensation as and when paid.

"(b) INDEMNIFICIATION OF EMPLYER.--Every employer required so to deduct the tax shall be liable for the payment of such tax, and shall be indemnified against the claims and demands of any person for the amount of any such payment made by such employer.

"(c) ADJUSTMENTS.--If more or less than the correct amount of tax imposed by section 1550 is paid with respect to any payment of remuneration, proper adjustments, with respect both to the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as may be prescribed by regulations made under this subchapter.

"SECTION 1552. NON-DEDUCTABILITY OF TAX FROM NET INCOME.

"For the purposes of the income tax imposed by chapter 1 or by any Act of Congress in substitution therefor, the tax imposed by section 1550 shall not be allowed as a deduction to the taxpayer in computing his net income for the year in which such tax is deducted from his wages.

"SECTION 1553. RECEIPTS FOR PILOTS.

"(a) REQUREMENT.--Every employer shall furnish to each pilot employed by him a written statement or statements, in a form suitable for retention by the pilot, showing the wages paid by him to the pilot after June 30, 1949. Each statement shall cover a calendar