PUBLIC LAW 107-90—DEC. 21, 2001 115 STAT. 891 SEC. 203. REPEAL OF SUPPLEMENTAL ANNUITY TAX. (a) REPEAL OF TAX ON EMPLOYEE REPRESENTATIVES.—Section 3211 is amended by striking subsection (b). 26 USC 3211. (b) REPEAL OF TAX ON EMPLOYERS. — Section 3221 is amended 26 USC 3221. by striking subsections (c) and (d) and by redesignating subsection (e) as subsection (c). (c) EFFECTIVE DATE. —The amendments made by this section Applicability. shall apply to calendar years beginning after December 31, 2001. 26 USC 3211 note. SEC. 204. EMPLOYER, EMPLOYEE REPRESENTATIVE, AND EMPLOYEE TIER 2 TAX RATE ADJUSTMENTS. (a) RATE OF TAX ON EMPLOYERS. —Subsection (b) of section 3221 is amended to read as follows: "(b) TIER 2 TAX. — "(1) IN GENERAL.—In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the applicable percentage of the compensation paid during any calendar year by such employer for services rendered to such employer. "(2) APPLICABLE PERCENTAGE.—For purposes of paragraph (1), the term 'applicable percentage' means— "(A) 15.6 percent in the case of compensation paid during 2002, "(B) 14.2 percent in the case of compensation paid during 2003, and "(C) in the case of compensation paid during any calendar year after 2003, the percentage determined under section 3241 for such calendar year.". (b) RATE OF TAX ON EMPLOYEE REPRESENTATIVES. —Section 3211, as amended by section 203, is amended by striking subsection (a) and inserting the following new subsections: "(a) TIER 1 TAX.— In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to the applicable percentage of the compensation received during any calendar year by such employee representative for services rendered by such employee representative. For purposes of the preceding sentence, the term 'applicable percentage' means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3101 and subsections (a) and (b) of section 3111 for the calendar year. "(b) TIER 2 TAX.— "(1) IN GENERAL.—In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to the applicable percentage of the compensation received during any calendar year by such employee representatives for services rendered by such employee representative. "(2) APPLICABLE PERCENTAGE. —For purposes of paragraph (1), the term 'applicable percentage' means— "(A) 14.75 percent in the case of compensation received during 2002, "(B) 14.20 percent in the case of compensation received during 2003, and "(C) in the case of compensation received during any calendar year after 2003, the percentage determined under section 3241 for such calendar year.
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