115 STAT. 892 PUBLIC LAW 107-90—DEC. 21, 2001 "(c) CROSS REFERENCE.— "For application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2).. (c) RATE OF TAX ON EMPLOYEES.—Subsection (b) of section 26 USC 3201. 3201 is amended to read as follows: "(b) TIER 2 TAX.— "(1) IN GENERAL.—In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the applicable percentage of the compensation received during any calendar year by such employee for services rendered by such employee. "(2) APPLICABLE PERCENTAGE.—For purposes of paragraph (1), the term 'applicable percentage' means— "(A) 4.90 percent in the case of compensation received during 2002 or 2003, and "(B) in the case of compensation received during any calendar year after 2003, the percentage determined under section 3241 for such calendar year.". 26 USC 3241. (d) DETERMINATION OF RATE. —Chapter 22 is amended by adding at the end the following new subchapter: "Subchapter E—Tier 2 Tax Rate Determination "Sec. 3241. Determination of tier 2 tax rate based on average account benefits ratio. "SEC. 3241. DETERMINATION OF TIER 2 TAX RATE BASED ON AVERAGE ACCOUNT BENEFITS RATIO. "(a) IN GENERAL. —For purposes of sections 3201(b), 3211(b), and 3221(b), the applicable percentage for any calendar year is the percentage determined in accordance with the table in subsection (b). "(b) TAX RATE SCHEDULE.— "Average At least 2.5 3.0 3.5 4.0 6.1 6.5 7.0 7.5 8.0 8.5 9.0 account benefits ratio But less than 2.5 3.0 3.5 4.0 6.1 6.5 7.0 7.5 8.0 8.5 9.0 Applicable percentage for sections 3211(b) and 3221(b) 22.1 18.1 15.1 14.1 13.1 12.6 12.1 11.6 ILl 10.1 9.1 8.2 Applicable percentage for section 3201(b) 4.9 4.9 4.9, 49 4.9 4.4 3.9 3.4 2.9 L9 0.9 0 "(c) DEFINITIONS RELATED TO DETERMINATION OF RATES OF TAX.— "(1) AVERAGE ACCOUNT BENEFITS RATIO.— For purposes of this section, the term 'average account benefits ratio' means, with respect to any calendar year, the average determined by the Secretary of the account benefits ratios for the 10 most recent fiscal years ending before such calendar year. If the
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