An Act to continue the existing excise tax rates on communication services and on automobiles, and to apply more generally the provisions relating to payments of estimated tax by corporations
PL 90-364 (H.R.15414), enacted 06/28/1968

82 STAT. I 
PUBLIC LAW 90-364-J UNE 28, 1968 
251 
sidered a reference to the day for the observance of such holiday 
prescribed in such amended section 6103(a). 
SEC. 2. The amendment made by subsection (a) of the first 
Effective date. 
section of this Act shall take effect on January 1, 1971. 
Approved June 28, 1968. 
Public Law 90-364 
AN ACT 
June 28, 1968 
To increase revenues, to limit expenditures and new obligational authority, 
[H. R. 15414] 
and for otlier purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. 
^ Revenue and 
•' 
ir 
1 
Expenditure Con-
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
*'°^ ^"^ °^ ^^'^ 
(a) SHORT TITLE.—This Act may be cited as the "Revenue and 
Expenditure Control Act of 1968". 
(b) 
TABLE or 
CONTENTS.— 
TITLE I—INTERNAL REVENUE CODE AMENDMENTS 
Sec. 101. Amendment of existing law. 
Sec. 102. Imposition of tax surcharge. 
Sec. 103. Payment of estimated tax by corporations. 
Sec. 104. Special rules for application of sections 102 and 103. 
Sec. lOo. Continuation of excise taxes on communication services and on auto-
mobiles. 
See. 106. Timely mailing of deposits. 
Sec. 107. Industrial development bonds. 
Sec. 108. Advertising in a political convention program. 
Sec. 109. Tax-exempt status of certain hospital service organizations. 
Sec. 110. Submission of proposals for tax reform. 
TITLE 
II—EXPENDITURE 
AND RELATED CONTROLS 
Sec. 201. Limitation on the number of civilian officers and employees in the 
executive branch. 
Sec. 202. Reduction of $6 billion in expenditures during fiscal year 1960. 
Sec. 203. Reduction of $10 billion in new obligational authority. 
Sec. 204. Specific recommendations for $8 billion rescission in old obligational 
authority. 
Sec. 20.5. Application of certain formulas. 
TITLE III—SOCIAL SECURITY ACT AMENDMENTS 
Sec. 301. Limitation on number of children with respect to whom Federal pay-
ments may be made under program of aid to families with dependent 
children. 
Sec. 302. Aid to families with dependent children in case of unemployed fathers 
receiving unemployment compensation. 
Sec. 303. Federal payments under medical assistance program for certain services 
includible under supplementary medical insurance program. 
TITLE I—INTERNAL REVENUE CODE AMENDMENTS 
SEC. 101. AMENDMENT OF EXISTING LAW. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be considered 
to be made to a section or other provision of the Internal Revenue Code 
of 1954. 
SEC. 102. IMPOSITION OF TAX SURCHARGE. 
(a) IMPOSITION OF TAX.—Subchapter A of chapter 1 (relating to 
determination of tax liability) is amended by inserting at the end 
thereof the following new part : 
68A Stat. 4. 
26 u s e 1-48. 
252 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
"PART V—TAX SURCHARGE 
"Sec. 51. Tax surcharge. 
"SEC. 51. TAX SURCHARGE. 
"(a) 
IMPOSITION OF TAX.— 
"(1) 
CALENDAR YEARS.— 
"(A) 
INDIVIDUALS (OTHER THAN ESTATES AND TRUSTS).— 
In addition to the other taxes imposed by this chapter, there is 
hereby imposed on the income of every individual (other than 
an estate or trust) whose taxable year is the calendar year a 
tax as follows: 
CALENDAR YEAR 
1 9 6 8 
TABLE 1.—Single person (other than head of household) and married person filing 
separate return 
If 
the 
adjusted 
tax 
is: 
At 
least 
0 
$148 
155 
162 
168 
1
7
6 
182 
1
8
8 
195 
202 
206 
216 
222 
228 
235 
242 
248 
265 
262 
268 
But 
less 
than 
$148 
1
6
5 
162 
168 
1
7
5 
182 
1
8
8 
1
9
5 
202 
208 
2
1
5 
222 
228 
235 
242 
248 
2
5
5 
262 
268 
275 
The 
tax 
is— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
1
4 
1
5 
16 
17 
18 
19 
If 
the 
adjusted 
tax 
is: 
At 
least 
$275 
282 
288 
298 
313 
327 
340 
353 
367 
380 
393 
407 
420 
433 
447 
460 
473 
487 
600 
613 
But 
less 
than 
$282 
288 
298 
313 
327 
340 
353 
367 
380 
393 
407 
420 
433 
447 
460 
473 
487 
500 
513 
527 
The tax 
is— 
$20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
If 
the 
adjusted 
tax 
is: 
At 
least 
$627 
540 
653 
667 
680 
693 
607 
620 
633 
647 
660 
673 
687 
700 
713 
727 
734 
and 
over, 
t
a
x 
But 
less 
than 
$540 
553 
567 
580 
693 
607 
620 
633 
647 
660 
673 
687 
700 
7
1
3 
727 
734 
The tax 
is— 
$40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
60 
61 
52 
63 
54 
66 
7.6% 
of 
the 
adjusted 
TABLE 2.—Head of household 
If 
the 
adjusted 
tax 
is: 
At 
least 
0 
$223 
230 
237 
243 
260 
267 
263 
270 
277 
283 
290 
297 
303 
310 
317 
328 
330 
387 
843 
But 
less 
than 
$223 
230 
237 
243 
260 
267 
263 
270 
277 
283 
290 
297 
303 
310 
317 
323 
330 
337 
343 
360 
The 
tax 
is— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1
1 
12 
13 
14 
1
6 
16 
17 
18 
19 
If 
the 
adjusted 
tax 
is: 
At 
least 
$360 
357 
363 
370 
377 
383 
390 
397 
403 
410 
417 
423 
430 
437 
447 
460 
473 
487 
500 
613 
But 
less 
than 
$357 
363 
370 
377 
383 
390 
397 
403 
410 
417 
423 
430 
437 
447 
460 
473 
487 
500 
513 
527 
The tax 
IS— 
$20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
If 
the 
adjusted 
tax 
is: 
At 
least 
$527 
540 
653 
667 
680 
593 
607 
620 
633 
647 
660 
673 
687 
700 
7
1
3 
727 
But 
less 
than 
$540 
653 
667 
680 
693 
607 
620 
633 
647 
660 
673 
687 
700 
7
1
3 
727 
734 
The tax 
is— 
$40 
41 
42 
43 
44 
46 
46 
47 
48 
49 
60 
51 
52 
63 
64 
56 
734 
and 
over, 
7.5% 
of 
the 
adjusted 
t
a
x 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
TABLE 3.—Married persons or surviving spouse filing joint return 
253 
If 
the 
adjusted 
tax 
is: 
At 
least 
0 
$293 
300 
307 
313 
820 
827 
. 333 
340 
347 
363 
360 
367 
373 
380 
387 
893 
400 
407 
413 
But 
less 
than 
$293 
300 
307 
313 
320 
327 
333 
340 
347 
353 
360 
367 
373 
380 
387 
393 
400 
407 
413 
420 
The tax 
is— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
If 
the 
adjusted 
tax 
is: 
At 
least 
$420 
427 
433 
440 
447 
453 
460 
467 
473 
480 
487 
493 
600 
507 
513 
520 
627 
533 
540 
547 
But 
less 
than 
$427 
433 
440 
447 
453 
460 
467 
473 
480 
487 
493 
500 
507 
513 
520 
527 
533 
540 
547 
563 
The tax 
is-
$20 
21 
22 
23 
24 
26 
26 
27 
28 
29 
30 
31 
32 
33 
34 
36 
36 
37 
38 
39 
If 
the 
adjusted 
tax 
is: 
At 
least 
$563 
660 
667 
573 
580 
593 
607 
620 
633 
647 
660 
673 
687 
700 
713 
727 
734 and 
over 
tax 
But 
l
e
s
s 
than 
$560 
567 
573 
580 
693 
607 
620 
633 
647 
660 
673 
687 
700 
713 
727 
734 
The 
tax 
IS— 
$40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
64 
55 
7.5% 
of 
the adjusted 
CALENDAR YEAR 
1 9 6 9 
TABLE 1.—Single i)erson (other than head of household) and married person filing 
separate return 
If 
the 
adjusted 
tax 
is: 
At 
least 
0 
$150 
160 
170 
180 
190 
200 
210 
220 
230 
240 
2S0 
260 
But 
less 
than 
$150 
160 
170 
180 
190 
200 
210 
220 
230 
240 
250 
260 
270 
The tax 
is— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
If 
the 
adjusted 
tax 
is: 
At 
least 
$270 
280 
290 
310 
330 
350 
370 
390 
410 
430 
460 
470 
490 
But 
less 
than 
$280 
290 
310 
330 
360 
370 
390 
410 
430 
450 
470 
490 
510 
The tax 
is— 
$13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
If 
the adjusted 
tax 
is: 
At 
least 
$510 
630 
650 
570 
690 
610 
630 
650 
670 
690 
710 
730 
and 
over 
tax 
But 
less 
than 
$630 
560 
570 
690 
610 
630 
650 
670 
690 
710 
730 
The 
tax 
IS— 
$26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
6% of 
the 
adjusted 
TABLE 2.—Head of household 
If 
the 
adjusted 
tax 
is: 
At 
least 
0 
$225 
236 
246 
256 
266 
276 
286 
295 
305 
316 
325 
336 
But 
less 
than 
$225 
236 
245 
256 
266 
275 
286 
296 
305 
316 
325 
336 
346 
The tax 
IS— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1
1 
12 
If 
the 
adjusted 
tax 
is: 
At 
least 
$346 
365 
366 
376 
386 
396 
405 
416 
426 
436 
460 
470 
490 
But 
less 
than 
$355 
365 
376 
386 
395 
405 
415 
426 
435 
450 
470 
490 
610 
The tax 
is— 
$13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
26 
If 
the 
adjusted 
tax 
is: 
At 
least 
$610 
530 
550 
570 
690 
610 
630 
650 
670 
690 
710 
730 
and over 
tax 
But 
less 
than 
$530 
550 
670 
590 
610 
630 
650 
670 
690 
710 
730 
The tax 
IS— 
$26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
5 % of 
the 
adjusted 
254 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
TABLE 3.—Married persons or surviving spouse filing joint return 
If the adjusted tax is: 
At least 
0 
$295 
305 
315 
326 
336 
346 
355 
366 
375 
385 
396 
405 
But less 
than 
$295 
305 
315 
325 
335 
345 
355 
365 
375 
385 
395 
405 
415 
The tax 
IS— 
0 
$1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
If the adjusted tax is: 
At least 
$415 
425 
435 
445 
455 
465 
475 
485 
495 
505 
515 
525 
535 
But less 
than 
$425 
435 
445 
455 
465 
475 
485 
495 
505 
515 
525 
535 
545 
The tax 
is— 
$13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
If the adjusted tax is: 
At least 
$545 
555 
565 
575 
590 
610 
630 
650 
670 
690 
710 
730 and over 
tax 
But less 
than 
$555 
565 
575 
590 
610 
630 
650 
670 
690 
710 
730 
The tax 
is— 
$26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
, 5% of the adjusted 
68A Stat. 733. 
26 u s e 6013. 
68A Stat. 6; 
78 Stat. 21. 
"(B) 
OTHER PERSONS.—In addition to the other taxes 
imposed by this chapter, there is hereby imposed on the 
income of every corporation, and on the income of every 
estate and trust, whose taxable year is the calendar year, a 
tax equal to the percent of the adjusted tax (as defined in 
subsection (b)) for the taxable year specified in the follow-
ing table: 
1968 
1969 
Calendar year 
Percent 
Estates and trusts 
7.5 
5.0 
Corporations 
10.0 
5.0 
"(2) FISCAL AND SHORT TAXABLE YEARS.— 
"(A) I N GENERAL.—In addition to the other taxes imposed 
by this chapter and except as provided in subparagraph (B), 
in the case of taxable years ending on or after the effective 
date of the surcharge and beginning before July 1,1969, there 
is hereby imposed on the income of every person whose tax-
able year is other than the calendar year, a tax equal to— 
" (i) 10 percent of the adjusted tax for the taxable year, 
multiplied by 
"(ii) a fraction, the numerator of which is the number 
of days in the taxable year occurring on and after the 
effective date of the surcharge and before July 1, 1969, 
and the denominator of which is the number of days in 
the entire taxable year. 
"(B) LIMITATION.—In the case of— 
" (i) a husband and wife (or surviving spouse) who file 
a joint return under section 6013 and whose adjusted tax 
for the taxable year is less than $580, 
"(ii) an individual who is a head of a household to 
whom section 1(b) applies and whose adjusted tax for 
the taxable year is less than $440, and 
"(iii) any other individual (other than an estate or 
trust) whose adjusted tax for the taxable year is less 
than $290, 
the tax imposed by subparagraph (A) shall not be greater 
than an amount equal to twice the tax which would be im-
posed by subparagraph (A) if the tax were imposed on the 
amount by which the adjusted tax exceeds $290, $220, or 
$145, respectively. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
255 
'•(C) 
EFFECHVE 
DATE DEFINED. 
F o r 
purposes of 
sub- 
"Elective date 
1 
/ i \ 
I 
- / v - 
1 
p 
^ 
1 
i ° f t"^ surcharge." 
paragraph (A), the term "enective date oi the surcharge 
means— 
"(i) January 1, 1968, in the case of a corporation, and 
"(ii) April 1, 1968, in the case of any other taxpayer. 
"(b) ADJUSTED TAX DEFINED.—For purposes of this section, the "Adjusted tax." 
term 'adjusted tax' means, with respect to any taxable year, the tax 
imposed by this chapter for such taxable year, determined without 
regard to— 
"(1) the taxes imposed by this section, section 871(a), and sec-
tion 881; and 
1555^'^''^'*^' 
"(2) any increases in tax under section 47(a) (relating to cer- 
26 use 87i, 
tain dispositions, etc., of section 38 property) or section 614(c) ssi. 
(4) (C) (relating to increase in tax for deductions under section 
72 stat! 1637. 
615(a) prior to aggregation), 
68A stat. 211. 
and reduced by an amount equal to the amount of any credit which 
would be allowable under section 37 (relating to retirement income) 
^^^ ^*^*' ^^' 
if no tax were imposed by this section for such taxable year. 
"(c) ESTIMATED TAX.—For purix)ses of applying the provisions of 
this title with respect to declarations, amended declarations, and pay-
ments of estimated tax the time prescribed for filing or payment of 
which is on or after— 
"(1) in the case of an individual, September 15, 1968, or 
"(2) in the case of a corporation, June 15, 1968, 
sections 6654(d) (1) and 6655(d) (1) shall not apply with respect to gg!?Itm''825-
any taxable year for which a tax is imposed by this section. 
Post, p. 264.' 
"(d) WESTERN HEMISPHERE TRADE CORPORATIONS AND DIVIDENDS 
ON CERTAIN PREFERRED STOCK.—In computing, for a taxable year 
of a corporation, the fraction described in— 
"(1) section 244(a)(2), relating to deduction with respect to yg^l^t^'ss ^''' 
dividends received on the preferred stock of a public utility, 
"(2) section 247(a)(2), relating to deduction with respect to 
certain dividends paid by a public utility, or 
"(3) section 922(2), relating to special deduction for Western 
Hemisphere trade corporations, 
the denominator shall, under regulations prescribed by the Secretary 
or his delegate, be increased to reflect the rate at which tax is imposed 
under subsection (a) for such taxable year. 
"(e) SHAREHOLDERS OF REGULAITED INVESTMENT COMPANIES.—In 
computing the amount of tax deemed paid under section 852(b) (3) 
(D) (ii) and the adjustment to basis described in section 852(b) (3) 
^^ ^^^^- 530. 
(D)(iii), the percentages set forth therein shall be adjusted under 
regulations prescribed by the Secretary or his delegate to reflect the 
rate at which tax is imposed under subsection (a). 
"(f) SPECIAL RULE.—For purposes of this title, to the extent the tax 
imposed by this section is attributable (under regulations prescribed 
by the Secretary or his delegate) to a tax imposed by another section 
O
T this chapter, such tax shall be deemed to be imposed by such other 
section." 
(b) TECHNICAL AMENDMENT.—Section 963(b) (relating to receipt 
of minimum distributions by domestic corporations) is amended— 
(1) by striking out the heading of paragraph (1) and inserting 
in lieu thereof the following: 
"(1) TAXABLE YEARS BEGINNING IN 1963 AND TAXABLE YEARS 
ENTIRELY WITHIN THE SURCHARGE PERIOD.—", and 
(2) by striking out the heading of paragraph (3) and inserting 
in lieu thereof the following: 
78 Stat. 29. 
256 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
" ( 3 ) 
TAXABLE YEARS BEGINNING AFTER I 9 6 4 
(EXCEPT TAXABLE 
YEARS W H I C H INCLUDE ANY PART OF T H E SURCHARGE PERIOD). 
" , 
and 
(3) by adding after the table in paragraph (3) the following: 
"In the case of a taxable year beginning before the surcharge period 
and ending within the surcharge period, or beginning within the sur-
charge period and ending after the surcharge period, the required 
minimum distribution shall be an amount equal to the sum of— 
" (A) that portion of the minimum distribution which would be 
required if the provisions of paragraph (1) were applicable to the 
taxable year, which the number of days in such taxable year which 
are within the surcharge period bears to the total number of days 
in such taxable ^ear, plus 
"(B) that portion of the minimum distribution which would be 
required if the provisions of paragraph (3) were applicable to 
such taxable year, which the number of days in such taxable year 
which are not within the surcharge period bears to the total num-
ber of days in such taxable year. 
per^^d^"^^^^ 
As used in this subsection, the term 'surcharge period' means the period 
beginning January 1, 1968, and ending June 30, 1969." 
(c) WITHHOLDING ON WAGES.— 
(1) PERCENTAGE METHOD OF WITHHOLDING.—Subsection (a) 
of section 3402 (relating to requirement of withholding) is 
amended— 
(A) by inserting before table 1 therein the following: 
"(1) In the case of wages paid on or before the 15th day after 
the date of the enactment of the Revenue and Expenditure Con-
trol Act of 1968 or after June 30, 1969:"; and 
(B) by adding at the end thereof the following: 
"(2) In the case of wages paid after the 15th day after the 
date of the enactment of the Revenue and Expenditure Control 
Act of 1968 and before July 1, 1969: 
"Table 1—If the payroll period with respect to an employee is WEEKLY 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $4 
0. 
Over $4 but not over $13 
14% of excess over $4. 
Over $13 but not over $23 
$1.26 plus 15% of excess over $13. 
Over $23 but not over $85 
$2.76 plus 19% of excess over $23. 
Over $85 but not over $169 
$14 54 plus 22% of excess over $85. 
Over $169 but not over $212 
.i33.02 plus 28% of excess over $169. 
Over $212 
.$4.5.06 plus 33% of excess over $212. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $4 
0. 
Over $4 but not over $23 
14% of excess over .$4. 
Over $23 but not over $
"
>
8 
$2.66 plus 15% of excess over $23. 
Over $.58 but not over $169 
$7.91 plus 19% of excess over $58. 
Over $169 but not over $340 
,$29.00 plus 22% of excess over $169. 
Over $340 but not over $423 
.$66.62 plus 28% of excess over $340. 
Over $423 
$89.86 plus 33% of excess over $423. 
80 Stat. 38. 
26 u s e 3402. 
Ante, p. 251. 
82 STAT. ] 
PUBLIC L
A
W 90-364-JUNE 28, 1968 
257 
"Table 2—If the payroll period with respect to an employee is BIWEEKLY 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $8 
0. 
Over $8 but not over $27 
14% of excess over $8. 
Over $27 but not over $46 
$2.66 plus 15% of excess over $27. 
Over $46 but not over $16!> 
$5.51 plus 19% of excess over $46. 
Over $169 but not over $338 
.$28.88 plus 22% of excess over $169. 
Over $338 but not over $423 
$66.06 plus 28% of excess over $338. 
Over $423 
$89.86 plus 33% of excess over $423. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $8 
0. 
Over $8 but not over $46 
14% of excess over $8. 
Over $46 but not over $115 
$5.32 plus 15% of excess over $46. 
Over $115 but not over $338 
$15.67 plus 19% of excess over $115. 
Over $338 but not over $681 
.$58.04 plus 22% of excess over $338. 
Over $681 but not over $846 
$133.50 plus 28% of excess over $681. 
Over $846 
$179.70 plus 33% of excess over $846. 
"Table 3—If the piiyroll period with respect to an employee is SEMIMONTHLY 
" (a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $8 
0. 
Over $8 but not over $29 
14% of excess over $8. 
Over $29 but not over $50 
$2.94 plus 15% of excess over $29. 
Over $50 but not over $183 
$6.09 plus 19% of excess over $50. . 
Over $183 but not over $367 
$31.36 plus 22% of excess over $183. 
Over $367 but not over $458 
$71.84 plus 28% of excess over $367. 
Over $458 
$97.32 plus 33% of excess over $458. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $8 
0. 
Over $8 but not over $50 
14% of excess over $8. 
Over $50 but not over $125 
$5.88 plus 15% of excess over $50. 
Over $125 but not over $387 
$17.13 plus 19% of excess over $125. 
Over $367 but not over $738 
$63.11 plus 22% of excess over $367. 
Over $738 but not over $917 
$144.73 plus 28% of excess over $738. 
Over $917 
$194.85 plus 33% of excess over $917. 
"Table 4—If the payroll period with respect to an employee is MONTHLY 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $17 
0. 
Over $17 but not over $58 
14% of excess over $17. 
Over $58 but not over $100 
$5.74 plus 15% of excess over $58. 
Over $100 but not over $367 
$12.04 plus 19% of excess over $100. 
Over $367 but not over $733 
$62.77 plus 22% of excess over $367. 
Over $733 but not over $917 
$143.29 plus 28% of excess over $733. 
Over $917 
$194.81 plus 33% of excess over $917. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $17 
0. 
Over $17 but not over $100 
14% of excess over $17. 
Over $100 but not over $250 
$11.62 plus 15% of excess over $100. 
Over $250 but not over $733 
$34.12 plus 19% of excess over $250. 
Over $733 but not over $1475 
$125.89 plus 22% of excess over $733. 
Over $1475 but not over $1833 
$289.13 plus 28% of excess over $1475. 
Over $1833 
$389.37 plus 33% of excess over $1833. 
258 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
"Table 5.—If the payroll period with respect to aii employee is QUARTERLY 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $50 
0. 
Over $50 but not over $175 
14% of excess over $50. 
Over $175 but not over $300 
$17.50 plus 15% of excess over $175. 
Over $300 but not over $1100 
$36.25 plus 19% of excess over $300. 
Over $1100 but not over $2200 
$188.25 plus 22% of excess over $1100. 
Over $2200 but not over $2750 
$430.25 plus 28% of excess over $2200. 
Over $2750 
$584.25 plus 33% of excess over $2750. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Xot over $50 
0. 
Over 
$50 
but 
not 
over 
$300 
1 4 % 
of 
excess 
over 
$50. 
Over 
$300 
but 
not 
over 
$750 
$35.00 
plus 
15% 
of 
excess 
over 
$300. 
Over 
$750 
but 
not 
over 
$2200 
$102.50 
plus 
19% 
of 
excess 
over 
$750. 
Over 
$2200 
but 
not 
over 
$4425 
$378.00 
plus 
2 2 % 
of 
excess 
over 
$2200. 
Over $4425 
but 
not 
over 
$5500 
$867.50 
plus 
2 8 % 
of 
excess 
over 
$4425. 
Over $5500 
.
5
1
1
6
8
.
5
0 plus 3 3 % of excess over 
$5500. 
'•Table 6—If the i)ayroll period with respect to an employee is SEMIANNUAIi 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Xot over $100 
0. 
Over $100 but not over $350 
14% of excess over $100. 
Over $350 but not over $600 
$35.00 plus 157c of excess over $350. 
Over $600 but not over $2200 
$72.50 plus 197c of excess over $600. 
Over $2200 but not over $4400 
$376.50 plus 227o of excess over 
$2200. 
Over $4400 but not over $5500 
$860.50 plus 287c of excess over 
$4400. 
Over $5500 
$1168..50 plus 337o of excess over 
$5500. 
"(b) Married Person: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Xot over $100 
0. 
Over $100 but not over $600 
147c of excess over $100. 
Over $600 but not over $1500 
$70.00 plus 157c of excess over $600. 
Over $1500 but not over $4400 
$205.00 plus 197c of excess over $1500. 
Over $4400 but not over $8850 
$756.00 plus 227c of excess over $4400. 
Over $8850 but not over $11,000 
.$1735.00 plus 287c of excess over 
$88.50. 
Over $11,000 
$2337.00 plus 337c of excess over 
$11,000. 
'•Table 7—If the payroll period with respect .to an employee is ANXUAL 
" (a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages is: 
held shall be: 
Not over $200 
0. 
0\'er $200 but not over $700 
147o of excess over $200. 
Over $700 but not over $1200 
$70 plus 157o of excess over $700. 
Over $1200 but not over $4400 
.$145 plus 197o of excess over $1200. 
Over $4400 but not over $8800 
$753 plus 22% of excess over $4400. 
Over $8800 but not over $11,000 
$1,721 plus 287o of excess over $8800. 
Over $11,000 
.$2,337 plus 33% of excess over $11,-
000. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
259 
"(b) Married Person: 
The amount of income tax to be with-
1 f the amount of wages is: 
held shall be: 
Not over $200 
0. 
Over $200 but not over $1200 
14% of excess over $200. 
Over $1200 but not over $3000 
.$140 plus 15% of excess over $1200. 
Over $3000 but not over $8800 
.$410 pins 19% of excess over $3000. 
Over $8800 but not over $17,700 
$1,512 plus 22% of excess over $8800. 
Over $17,700 but not over $22,000__ 
$3,470 plus 28% of excess over $17,-
700. 
Over $22,000 
$4,674 plus 33% of excess over $22,-
000. 
"Table 8—If the payroll period with respect to an employee is a DAILY payroll 
or a miscellaneous payroll period 
"(a) Single Person—Including Head of Household: 
The amount of income tax to be with-
If the amount of wages divided by the 
held shall be the following amount 
number of days in the payroll pe- 
multiplied by the number of days 
riod is: 
in such period : 
Not over $0.50 
0. 
Over $0.50 but not over $1.90 
14% of excess over $0.50. 
Over $1.90 but not over $3.30 
$0.20 plus 15% of excess over $1.90. 
Over $3.30 but not over $12.10 
.$0.41 plus 19% of excess over $3.30. 
Over $12.10 but not over $24.10 
$2.08 plus 22% of excess over $12.10. 
Over $24.10 but not over $30.10 
$4.72 plus 28% of excess over $24.10. 
Over $30.10 
$6.40 plus 33% of excess over $30.10. 
"(b) Married Person: 
The amount of income tax to be withheld 
If the amount of wages divided by the 
shall be the following amount mul-
numiber of days in the payroll pe- 
tiplied by the number of days in 
riod is: 
such period: 
Not over $0.50 
0. 
Over $0.50 but not over $3.30 
14% of excess over $0.50. 
Over $3.30 but not over $8.20 
$0.39 plus 15% of excess over $3.30. 
Over $8.20 but not over $24.10 
$1.13 plus 19% of excess over $8.20. 
Over $24.10 but not over $48.50 
.$4.1o plus 22% of excess over $24.10. 
Over $48.50 but not over $60.30 
.$9.52 plus 28% of excess over $48.50. 
Over $60.30 
.$12.82 plus 33% of excess over 
$60.30." 
(2) WAGE BRACKET WITHHOIJ)ING.—Subsection (c) of section 3402 
(relating to wage bracket withholding) is amended by adding at the 
end thereof the following new paragraph: 
" (6) In the case of wages paid after the 15th day after the date 
of the enactment of the Revenue and Expenditure Control Act of 
1968, and before July 1,1969, the amount deducted and withheld 
under paragraph (1) shall be determined in accordance with 
tables prescribed by the Secretary or his delegate in lieu of the 
tables contained in paragraph (1). The tables so prescribed shall 
be the same as the tables contained in paragraph (1), except that 
amounts and rates set forth as amounts and rates of tax to be 
deducted and withheld shall be computed on the basis of table 7 
contained in subsection (a) (2)." 
(d) CLERICAL AMENDMENT.—The table of parts of subchapter A of 
chapter 1 is amended by adding at the end thereof the following: 
"Part V. Tax surcharge." 
(e) EFFECTIVE DATE.—Except as provided hj section 104, the amend-
ments made by this section (other than subsection (c)) shall apply— 
(1) Insofar as they relate to taxpayers other than corporations, 
to taxable years ending after March 31,1968, and beginning before 
July 1, 1969. 
68A Stat. 458 
26 u s e 3402. 
Ante, p . 251. 
80 Stat. 4 1 . 
Ante, p. 258. 
Post, p. 264. 
260 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
(2) Insofar as they relate to corporations, to taxable years end-
ing after I>ecember 81, 1967, and beginning before July 1, 1969. 
SEC. 103. PAYMENT OF ESTIMATED TAX BY CORPORATIONS. 
so^st^f 
*i563^*' 
(^) REPEAL or REQUIREMENT or DECLARATION.—Section 6016 (relat-
26 use 6016. 
ing to declarations of estimated income tax hy corporations) and sec-
78 Stat. 27. 
tj^n 6074 (relating to time for filing declarations of estimated income 
tax by corporations) are repealed. 
(b) INSTALLMENT PAYMENTS or ESTIMATED INCOME TAX BY CORPO-
so'stare/^' 
RATIONS.—Section 6154 "(relating to installment payments of estimated 
income tax by corporations) is amended to read as follows: 
"SEC. 6154. INSTALLMENT PAYMENTS OF ESTIMATED INCOME TAX BY 
CORPORATIONS. 
"(a) CORPORATIONS REQUIRED To PAY ESTIMATED INCOME TAX.— 
68A Stat. 320. 
Every corporation subject to taxation under section 11 or 1201(a), or 
26 use 801- 
subchapter L of chapter 1 (relating to insurance companies), shall 
make payments of estimated tax (as defined in subsection (c)) during 
its taxable year as provided in subsection (b) if its estimated tax for 
such taxable year can reasonably be expected to be $40 or more. 
"(b) PAYMENT IN INSTALLMENTS.—Any corporation required under 
subsection (a) to make payments of estimated tax (as defined in sub-
section (c)) shall make such payments in installments as follows: 
The followlf'g percentage" of the 
estimated tax shrll be paid on 
"If the reiuirements of subsection (a) are first met— 
the 15th day of the— 
843 
4th 
6th 
9th 
12th 
month month month month 
Before the 1st day of the 4 h month of the taxable year 
25 
25 
25 
25 
After the la^t day of the 3d month and before the 1st day of the 6th month 
of the taxable ye r 
33J^ 
S3H 
3ZM 
Af or the 1 ist day of the 5th month and before the 1st day of the 9th month 
of the taxable year 
_ 
50 
50 
After the 1 tst day of the 8th month and before the 1st day of the 12th month 
of the tixable year. 
- 
100 
"(c) ESTIMATED TAX DEFINED,— 
"(1) I N GENERAL.—For purposes of this title, in the case of a 
corporation the term 'estimated tax' means the excess of— 
"(A) the amount which the corporation estimates as the 
amount of the income tax imposed by section 11 or 1201 (a), or 
subchapter L of chapter 1, whichever is applicable, over 
" (B) the sum of— 
"(i) the amount which the corporation estimates as 
the sum of the credits against tax provided by part IV 
26 use 31-48. 
Qf subchapter A of chapter 1, 
"(ii) in the case of a taxable year beginning after 
December 31, 1967, and before January 1, 1977, the 
amount of the corporation's temporary estimated tax 
exemption for such year, and 
"(iii) in the case of a taxable year beginning after 
December 31, 1967, and before January 1, 1972, the 
amount of the corporation's transitional exemption for 
such year. 
" (2) TEMPORARY ESTIMATED TAX EXEMPTION.— 
"(A) I N GENERAL.—For purposes of clause (ii) of para-
graph (1) (B), the amount of a corporation's temporary esti-
mated tax exemption for a taxable year equals the applicable 
percentage (determined under subparagraph (B)) multi-
plied by the lesser of— 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1%8 
261 
"(i) an amount equal to 22 percent of the amount 
which the corporation estimates as its surtax exemption 
(as defined in section 11(d)) for such year, or 
^^ us^c n ' 
" (ii) the excess determined under paragraph (1) with-
out regard to clauses (ii) and (iii) of paragraph (1) (B). 
"(B) APPLICABLE PERCENTAGE.—For purposes of subpara-
graph (A) and section 6655(e)(2), the applicable percent- 
^°s^ P 262. 
age is— 
"In the case of a taxable year beginning in— 
1968, 1969, 1970, 1971, and 1972 
100 percent 
1973 
80 percent 
1974 
60 percent 
1975 
40 percent 
1976 
20 percent. 
" ( 3 ) 
TRANSITIONAL EXEMPTION.— 
"(A) I N GENERAL.—For purposes of clause (iii) of para-
graph (1)(B), the amount of a corporation's transitional 
exemption for a taxable year equals the exclusion percentage 
(determined under subparagraph (B)) multiplied by the 
lesser of— 
"(i) $100,000, reduced by the amount of the corpora-
tion's temporary estimated tax exemption for such year, or 
"(ii) the excess determined under paragraph (1) 
without regard to clause (iii) of paragraph (1) (B). 
"(B) EXCLUSION PERCENTAGE.—For purposes of subpara-
graph (A) and section 6655(e) (3), the exclusion percentage 
^°^^' P ^es. 
"In the case of a taxable year beginning In— 
1968 
80 percent 
1969 
60 percent 
1970 
40 percent 
1971 
20 percent. 
"(d) RECOMPUTATION OF ESTIMATED TAX.—If, after paying any 
installment of estimated tax, the taxpayer makes a new estimate, the 
amount of each remaining installment (if any) shall be the amount 
which would have been payable if the new estimate had been made 
when the first estimate for the taxable year was made, increased or 
decreased (as the case may be) by the amount computed by dividing— 
" (1) the difference between— 
"(A) the amount of estimated tax required to be paid 
before the date on which the new estimate is made, and 
"(B) the amount of estimated tax which would have been 
required to be paid before such date if the new estimate had 
been made when the first estimate was made, by 
"(2) the number of installments remaining to be paid on or 
after the date on which the new estimate is made. 
"(e) APPLICATION TO SHORT TAXABLE YEAR,—The application of 
this section to taxable years of less than 12 months shall be in accord-
ance with regulations prescribed by the Secretary or his delegate. 
"(f) INSTALLMENTS PAID IN ADVANCE.—At the election of the cor-
poration, any installment of the estimated tax may be paid before the 
date prescribed for its payment. 
"(g) CERTAIN FOREIGN CORPORATIONS.—For purposes of this sec-
tion and section 6655, in the case of a foreign corporation subject to 
taxation under section 11 or 1201 (a), or under subchapter L of chap- 
je^uscTso^i^-" 
ter 1, the tax imposed by section 881 shall be treated as a tax imposed 843. 
by section 11." 
so stat. iss.-;. 
26 u s e 31-48. 
Ante, p. 261. 
262 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
(c) FAILURE BY CORPORATION TO PAY ESTIMATED TAX.— 
(1) RAISING TO PERCENT REQUIREMENT TO SO PERCENT.—Sub-
78^sfaf*28/^^' 
sectioiis (b) and (d)(3) of section 6655 (relating to underpay-
26 use 6655. 
ments of estimated tax) are amended by striking out "70 percent" 
ejich pla<^e it appears therein and inserting in lieu thereof "80 
percent". 
(2) DEFINITION OF TAX.—Subsection (e) of section 6655 (re-
lating to definition of tax) is amended to read as follows: 
"(e) 
DEFINITION OF TAX.— 
"(1) I N GENERAL.—For purposes of subsections (b) and (d), 
the term 'tax' means the excess of— 
68A'st'at^32o. 
''(-^) ^^^^ tax iuiposed by section 11 or 1201 (a), or sub-
26 use 801- 
chapter L of chapter 1. whichever is applicable, over 
8^3- 
"(B) the sum of— 
"(i) the credits against tax provided by part IV of 
subchapter A of chapter 1, 
"(ii) in tlie case of a taxable year beginning after 
December 31, 1967, and before January 1, 1977, the 
amount of the corporation's temporary estimated tax 
exemption for such year, and 
"(iii) in the case of a taxable year beginning after 
December 31, 1967, and l)efore January 1, 1972, the 
amount of the corporation's transitional exemption for 
such year. 
"(2) 
TEMPORARY ESTIMATED TAX EXEMPTION.—For purposes 
of clause (ii) of paragraph (1) (B), the amount of a corpoi;ation"s 
temporary estimated tax exemption for a taxable year equals the 
applicable percentage (determined under section 6154(c) (2) (B)) 
multiplied by the lesser of— 
"(A) an amount equal to 22 percent of the corporation's 
surtax exemption (as defined in section 11(d)) for such year, 
or 
"(B) the excess determined under paragraph (1) without 
regard to clauses (ii) and (iii) of paragraph (1)(B). 
"(3) TRANSITIONAL EXEMPTION.—For purposes of clause (iii) 
of paragraph (1) (B), the amount of a corporation's transitional 
exemption for a taxable year equals the exclusion percentage (de-
termined under section 6154(c) (3) (B)) multiplied by the lesser 
of— 
"(A) $100,000, reduced by the amount of the corporation's 
temporary estimated tax exemption for such j^ear, or 
"(B) the excess determined under paragraph (1) without 
regard to clause (iii) of paragraph (1) (B). 
"(4) SPECIAL RULE FOR SUBSECTION (d) ( D AND (2).—In apply-
ing this subsection for purposes of subsection (d) (1) and (2), the 
applicable percentage and the exclusion percentage shall be the 
percentage for the taxable year for which the underpayment is 
being determined." 
(d) ADJUSTMENT OF OVERPAYMENT.— 
26 use 6411- 
(X) ALLOWANCE OF ADJUSTMENT.—Subchapter B of chapter 65 
(relating to rules of special application) is amended by adding at 
the end thereof the following new section: 
'•SEC. 6425. ADJUSTMENT OF OVERPAYMENT OF ESTIMATED INCOME 
TAX BY CORPORATION. 
"(a) 
APPLICATION FOR ADJUSTMENT.— 
"(1) TIME FOR FILING.—A corporation may, after the close of 
the taxable year and on or before the 15th day of the third month 
thereafter, and before the day on which it files a return for such 
taxable year, file an application for an adjustment of an overpay-
6424. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
263 
ment by it of estimated income tax for such taxable year. An 
application under this subsection shall not constitute a claim for 
credit or refund. 
"(2) FORM OF APPLICATION, ETC.—An application under this 
subsection shall be verified in the maimer prescribed by section 6065 
oe^scTeoes^ 
in the case of a return of the taxpayer, and shall be filed in the 
manner and form required by regulations prescribed by the Sec-
retary or his delegate. The application shall set forth— 
"(A) the estimated income tax paid by the corporation 
during the taxable year, 
"(B) the amount which, at the time of filing the appli-
cation, the corporation estimates as its income tax liability for 
the taxable year, 
"(C) the amount of the adjustment, and 
"(D) such other information for purposes of carrying 
out the provisions of this section as may be required by such 
regulations. 
"(b) 
ALLOWANCE OF ADJUSTMENT.— 
"(1) LIMITED EXAMINATION OF APPLICATION.—Within a period 
of 45 days from the date on Avhich an application for an adjust-
ment is filed under subsection (a), the Secretary or his delegate 
shall make, to the extent he deems practicable in such period, a 
limited examination of the application to discover omissions and 
errors therein, and shall determine the amount of the adjustment 
upon the basis of the application and the examination; except that 
the Secreta.ry or his delegate may disallow, without further action, 
any application which he finds contains material omissions or 
errors which he deems cannot be corrected w ithin such 45 days. 
"(2) 
ADJUSTMENT CREDITED OR REFUNDED.—The Secretary 
or 
his delegate, within the 45-day period referred to in paragraph 
(1), may credit the amount of the adjustment against any liability 
in respect of an internal revenue tax on the part of the corpora-
tion and shall refund the remainder to the corporation. 
"(3) LIMITATION.—No application under this section shall be 
allowed unless the amount of the adjustment equals or exceeds 
(A) 10 percent of the amount estimated by the corporation on its 
application as its income tax liability for the taxable year, and 
(B) $500. 
"(4) EFFECT OF ADJUSTMENT.—For purposes of this title (other 
than section 6655), any adjustment under this section shall be 
treated as a reduction, in the estimated income tax paid, made 
on the day the credit is allowed or the refund is paid. 
"(c) DEFINITIONS.—For purposes of this section and section 
6655(g) (relating to excessive adjustment)— 
Post, p. 204. 
"(1) The term 'income tax liability' means the excess of— 
. "income tax 
"(A) the tax imposed by section 11 or 1201(a), or sub- ^yg'stai. 25. 
chapter L of chapter 1, whichever is applicable, over 
esA stat. 320. 
"(B) the credits against tax provided by part IV of sub- 343^ ^^*^ ®°^' 
chapter A of chapter 1. 
26 use 31-48. 
"(2) The amount of an adjustment under this section is equal 
to the excess of— 
"(A) the estimated income tax paid by the corporation 
during the taxable year, over 
"(B) the amount which, at the time of filing the applica-
tion, the corporation estimates as its income tax liability for 
the taxable year. 
"(d) CONSOLIDATED RETURNS.—If 
the corporation 
seeking an 
adjustment under this section paid its estimated income tax on a con-
solidated basis or expects to make a consolidated return for the taxable 
5-600 O - 69 - 20 
Ante, p. 262. 
Ante, p. 263. 
78 Stat. 53. 
264 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
year, this section shall apply only to such extent and subject to such 
conditions, limitations, and exceptions as the Secretary or his delegate 
may by regulations prescribe." 
ae'uscTees" 
^^^ AMENDMENT OF SECTION 6605.—Section 6655 is amended by 
adding at the end thereof the following new subsection: 
"(g) EXCESSIVE ADJUSTMENT UNDER SECTION 6425.— 
"(1) ADDITION TO TAX.—If the amount of an adjustment under 
section 6425 made before the 15th day of the third month follow-
ing the close of the taxable year is excessive, there shall be added 
to the tax under chapter 1 for the taxable year an amount deter-
mined at the rate of 6 percent per annum upon the excessive 
amount from the date on which the credit is allowed or the refund 
i.s paid to such 15th day. 
"(2) EXCESSIVE AMOUNT.—For purposes of paragraph (1), the 
excessive amount is equal to the amount of the adjustment or (if 
smaller) the amount by which— 
"(A) the income tax liability (as defined in section 6425 
(c)) for the taxable year as shown on the return for the tax-
able year, exceeds 
;• 
"(B) the estimated income tax paid during the taxable 
year, reduced by the amount of the adjustment." 
(e) CONFORMING AMENDMENTS.— 
(1) Section 6655(d) (1) is amended by striking out "reduced by 
$100,000". _ 
(2) Section 243 (b) (B) (C) (v) is amended to read as follows: 
" (v) surtax exemption, and one amount under sections 6154 
^^Anfe, pp. 260, 
{t) {'2.) aud (3) aud sections 6655(e)(2) and (3), for pur-
poses of estimated tax payment requirements under section 
6154 and the addition to the tax under section 6655 for failure 
to pay estimated tax." 
68A Stat. 740. 
(3) Sectiou 6020(b)(1) is amended by striking out "section 
6015 or 6016)" and inserting in lieu thereof "section 6015)". 
(4) Section 6651(c) is amended by striking out "or section 
6016". 
(5) Section 7203 is amended by striking out "section 6015 or 
section 6016)," and inserting in lieu thereof "section 6015),". 
80 Stat. 64. 
((.) Section 7701(a) (34) (B) is amended by striking out "sec-
tion 6016(b)" and inserting in lieu thereof "section 6154(c)". 
(7) The table of sections for subpart B of part I I of subchap-
ter A of chapter 61 is amended by striking out the item relating 
Ante. p. 260. 
to sectiou 6016. 
(8) The table of sections for part V of subchapter A of chapter 
61 is amended by striking out the item relating to section 6074. 
(9) The table of sections for subchapter B of chapter 65 is 
amended by adding at the end thereof the following: 
"Sec. 6425. Adjustment of overpayment of estimated income tax by corporation." 
(f) EFFECTIVE DATE.—Except as provided by section 104, the 
amendments made by this section shall apply with respect to taxable 
years beginning after December 31, 1967. 
SEC. 104. SPECIAL RULES FOR APPLICATION OF SECTIONS 102 AND 103. 
(a) PAYMENT OF ESTIMATED TAX FOR TAXABLE YEARS BEGINNING 
BEFORE DATE OF ENACTMENT.—In determining whether any taxpayer 
is required to make a declaration or amended declaration of estimated 
tax, or to pay any amount or additional amount of estimated tax, by 
reason of the amendments made by sections 102 and 103— 
(1) such amendments shall apply (A) in the case of an indi-
vidual, only if the taxable year ends on or after September 30, 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
265 
1968, and (B) in the cjise of a corporation, only if the taxable 
year ends on or after June 30, 1968, 
(2) in applying sections 6015, 6078, and 6654 of the Internal 
Revenue Code of 1954, such amendments shall first be taken into 
je'uscTeo'ts^' 
account as of Septemljer 1, 1968, and 
6073, 6654. 
(3) in applying sections 6016, 6074, 6154, and 6655 of such 
Code, such amendments shall first be taken into account as of ^/!"'^; PP- ^^°' 
May 31, 1968. 
. 
' ' ' ' ' ' ' • 
In the case of any amount cr additional amount of estimated tax pay-
able, by reason of such amendments, by a corporation on or after 
June 15,1968, and before the 15th day after the date of the enactment 
of this Act, the time prescribed for payment of such amount or addi-
tional amount shall not expire before such date (not earlier than the 
15th day after the date of the enactment of this Act) as the Secretary 
of the Treasury or his delegate shall prescribe. 
(b) 
PAYMENT OF TAX SURCHARGE FOR TAXABLE YEARS ENDING 
BEFORE DATE OF ENACTMENT.—In the case of a taxable year ending 
before the date of the enactmenit of this Act, the time prescribed for 
payment of the tax imposed by section 51 of the Internal Revenue 
Code of 1954 shall not expire before September 15,1968. 
^"'^' P- 252. 
SEC. 105. CONTINUATION OF EXCISE TAXES ON COMMUNICATION 
SERVICES AND ON AUTOMOBILES. 
(a) 
PASSENGER AUTOMOTJILES.— 
(1) I N GENERAL.—Subparagraph (A) of section 4061(a)(2) 
so stat. es. 
(relating to tax on passenger automobiles, etc.) is amended to read 
as follows: 
"(A) Articles enumerated in subparagraph (B) are taxable at 
^^ ^'^'- ^^'• 
whichever of the following rates is applicable: 
"If the article 
is sold— 
The tax rate is— 
Before .January 1, 1970 
7 i>ercent 
During 1970 
"
> percent 
During 1971 
3 percent 
During 1972 
1 percent. 
The tax imposed by this subsection shall not apply with respect to 
articles enumerated in subparagraph (B) which are sold by the 
manufacturer, producer, or importer after December 31,1972.'' 
(2) CONFORMING AMENDMENT.—Section 6412(a)(1) (relating ^^*°g^p^*g2^^' 
to floor stocks refunds on passenger automobiles, etc.) is amended 
by striking out "May 1,1968, or ,Jtinuary 1,1969," and inserting in 
lieu thereof "January 1, 1970, January 1, 1971, January 1, 1972, 
or January 1, 1973,". 
(b) 
COMMUNICATIONS SERVICES.— 
(1) CONTINUATION OF TAX.—Paragraph (2) of section 4251(a) 
(relating to tax on certain communications services) is amended 
to read as follows: 
" (2) The rate of tax referred to in paragraph (1) is as follows: 
^^ ^*^*- ^'^^-
•'Amounts i)aid pursuant to 
bills first rendered— 
Percent— 
Before .January 1, 1970 
10 
During 1970 
,5 
During 1971 
S 
During 1972 
1." 
(2) CONFORMING AMENDMENTS.—Subsection (b) of section 4251 
(relating to termination of tax) is amended by striking out "Janu-
ary 1, 1969" and inserting in lieu thereof "January 1, 1973", and 
subsection (c) of section 4251 is amended to read as follows: 
so stat. ee. 
"(c) SPECIAL RULE.—-For purposes of subsections (a) and (b), in 
the case of communications services rendered before November 1 of a 
266 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
79 Stat. 145. 
26 u s e 4251-
4254. 
80 Stat. 1110. 
68A Stat. 775. 
" P a y m e n t . " 
68A Stat. 29. 
\ 
calendar year for which a bill has not been rendered before the close of 
such year, a bill shall be treated as having been first rendered on 
December 81 of such year." 
(3) REPEAL OF SUBCHAI>TER B OF CHAPTER sa.—Effective with 
respect to amounts paid pursuant to bills first rendered on or after 
January 1, 1978, subchapter B of chapter 88 (relating to the tax 
on communications) is repealed. For purposes of the preceding 
sentence, in the case of communications services rendered before 
November 1, 1972, for which a bill has not been rendered before 
January 1, 1978, a bill shall be treated as having been first ren-
dered on December 81,1972. Effective January 1,1978, the table of 
subchapters for chapter 88 is amended by striking out the item 
relating to such subchapter B. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
take effect as of April 80,1968. 
SEC. 106. TIMELY MAILING OF DEPOSITS. 
(a) TIMELY MAILING TREATED AS TIMELY DEPOSIT.—Section 7502 
(relating to timely mailing treated as timely filing and paying) is 
amended by adding at the end thereof the following new subsection: 
"(e) 
MAILING OF DEPOSITS.— 
"(1) DATE OF DEPOSIT.—If any deposit required to be made 
(pursuant to regulations prescribed by the Secretary or his dele-
gate under section 6802 (c)) on or before a prescribed date is, after 
such date, delivered by the United States mail to the bank or 
trust company authorized to receive such deposit, such deposit 
shall be deemed received by such bank or trust company on the 
date the deposit was mailed. 
"(2) MAILING REQUIREMENTS.—Paragraph (1) shall apply only 
if the person required to make the deposit establishes that— 
"(A) the date of mailing falls on or before the second day 
before the prescribed date for making the deposit (includ-
ing any extension of time granted for making such deposit), 
and 
"(B) the deposit was, on or before such second day, mailed 
in the United States in an envelope or other appropriate 
wrapper, postage prepaid, properly addressed to the bank 
or trust company authorized to receive such deposit. 
In applying subsection (c) for purposes of this subsection, the 
term 'payment' includes 'deposit', and the reference to the post-
mark date refers to the date of mailing." 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply only as to mailing occurring after the date of the enactment of 
this Act. 
SEC. 107. INDUSTRIAL DEVELOPMENT BONT)S. 
(a) AMENDMENT OF SECTION 103.—Section 103 (relating to interest 
on certain governmental obligations) is amended by relettering sub-
section (c) as subsection (d) and by inserting after subsection (b) 
the following new subsection: 
"(c) 
INDUSTRIAL. DEVELOPMENT BONDS.— 
"(1) SUBSECTION (a)(1) NOT TO APPLY.—Except as otherwise 
E
rovided in this subsection, any industrial development bond shall 
e treated as an obligation not described in subsection (a) (1). 
~~~^^(2) INDUSTRIAL DEVELOPMENT BOND.—For purposes of this 
subsection, the term 'industrial development bond' means any obli-
gation— 
" (A) which is issued as part of an issue all or a major por-
tion of the proceeds of which are to be used directly or indi-
rectly in any trade or business carried on by any person who 
68A Stat. 163. 
26 use 501. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
267 
1 
is not an exempt person (within the meaning of paragraph 
1 
(3)), and 
\ 
"(B) the payment of the principal or interest on which 
(under the terms of such obligation or any underlying ar-
1 
rangement) is, in whole or in major part— 
J 
"(i) secured by any interest in property used or to be 
\ 
used in a trade or business or in payments in respect of 
such property, or 
"(ii) to be derived from payments in respect of prop-
erty, or borrowed money, used or to be used in a trade 
or business. 
' "(8) EXEMPT PERSON.—For purposes of paragraph (2) (A), 
the term 'exempt person' means— 
"(A) a governmental unit, or 
"(B) an organization described in section 501(c)(3) and 
exempt from tax under section 501 (a) (but only with respect 
to a trade or business carried on by such organization which 
is not an unrelated trade or business, determined by applying 
section 513 (a) to such organization). 
"(4,) CERTAIN EXEMPI' ACITVITIES.—Paragraph (1) shall not 
apply to any obligation which is issued as part of an issue substan-
tially all of the proceeds of which are to be used to provide— 
"(A) residential real property for family units, 
"(B) sports facilities, 
"(C) convention or trade show facilities, 
"(D) airports, docks, wharves, mass commuting facilities, 
l^arking facilities, or storage or training facilities directly 
related to any of the foregoing, 
"(E) sewage or solid waste disposal facilities or facilities 
for the local furnishing of electric energy, ^as, or water, or 
"(F) air or water pollution control facilities. 
"(5) INDUSTRIAL PARKS.—Paragraph (1) shall not apply to any 
obligation issued as part of an issue substantially all of the pro-
ceeds of w^hich are to be used for the acquisition or development 
of land as the site for an industrial park. For purposes of the 
"Development of 
preceding sentence, the term 'development of land' includes the ^^"'^ 
provision of water, sewage, drainage, or similar facilities, or of 
transportation, power, or communication facilities, which are 
incidental to use of the site as an industrial park, but, except with 
respect to such facilities, does not include the provision of struc-
tures or buildings. 
"(6) 
EXEMPTION FOR CERTAIN SMALL ISSUES.— 
"(A) I N GENERAL.—Paragraph (1) shall not apply to any 
obligation issued as part of an issue the aggregate authorized 
face amount of which is $1,000,000 or less and substantially all 
of the proceeds of which are to be used (i) for the acquisition, 
construction, reconstruction, or improvement of land or prop-
erty of a character subject to the allowance for depreciation, 
or (ii) to redeem part or all of a prior issue which was issued 
for purposes described in clause (i) or this clause. 
"(B) 
CERTAIN PRIOR ISSUES TAKEN INIX) ACCOUNT.—If— 
"(i) the proceeds of two or more issues of obligations 
(whether or not the issuer of each such issue is the same) 
are or will be used primarily with respect to facilities 
located in the same incorporated municipality or located 
in the same county (but not in any incorporated munici-
palit;5f)» 
"(li) the principal user of such facilities is or will be 
the same person or two or more related persons, and 
268 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
68A Stat. 78. 
26 u s e 267. 
78 Stat. 120. 
b 
80 Stat. 66. 
"(iii) but for this subparagraph, subparagraph (A) 
would apply to each such issue, 
then, for purposes of subparagraph (A), in determining the 
aggregate face amount of any later issue there shall be taken 
into account the face amount of obligations issued under all 
prior such issues and outstanding at the time of such later 
issue (not including as outstanding any obligation which is 
to be redeemed from the proceeds of the later issue). 
"(C) RELATED PERSONS.—For purposes of this paragraph 
and paragraph (7), a person is a related person to another 
person if— 
"(i) the relationship between such persons would re-
sult in a disallowance of losses under section 267 or 
707(b), or 
"(ii) such persons are members of the same controlled 
group of corporations (as defined in section 1563(a), 
except that 'more than 50 percent' shall be substituted for 
'at least 80 percent' each place it appears therein). 
"(7) EXCEPTION.—Paragraphs (4), (5), and (6) shall not 
apply with respect to any obligation for any period during which 
it is held by a person who is a substantial user of the facilities or 
^ a related person." 
/'' (b) EFFECTIVE DATE.— 
I 
(1) I N GENERAL.—Except as provided by paragraph (2), the 
1 
amendment made by subsection (a) shall apply to taxable years 
i 
ending after April 30, 1968, but only with respect to obligations 
issued after such date. 
(2) TRANSITIONAL PROVISIONS.—Section 103(c)(1) of the 
In-
ternal Revenue Code of 1954, as amended by subsection (a), shall 
not apply with respect to any obligation issued before January 1, 
^ 
1969, if before May 1,1968— 
\ 
(A) the issuance of the obligation (or the project in connec-
\ 
tion with which the proceeds of the obligations are to be used) 
\ 
was authorized or approved by the governing body of the 
governmental unit issuing the obligation or by the voters of 
such governmental unit; 
i 
(B) in connection with the issuance of such obligation or 
I 
with the use of the proceeds to be derived from the sale of 
such obligation or the property to be acquired or improved 
with such proceeds, a governmental unit has made a signifi-
cant financial commitment; 
(C) any person (other than a governmental unit) who 
will use the proceeds to be derived from the sale of such obli-
1 
gation or the property to be acquired or improved with such 
proceeds has expended (or has entered into a binding contract 
to expend) for purposes which are related to the use of such 
proceeds or property, an amount equal to or in excess of 20 
percent of such proceeds; or 
I 
(D) in the case of an obligation issued in conjunction with 
i 
a project where financial assistance will be provided by a gov-
ernmental agency concerned with economic development, such 
agency has approved the project or an application for finan-
cial assistance is pending. 
SEC. 108. ADVERTISING IN A POLITICAL CONVENTION PROGRAM. 
(a) ALLOWANCE OF DEDUCTION.—Section 276 (relating to certain 
indirect contributions to political parties) is amended by redesignating 
subsection (c) as (d), and by inserting after subsection (b) the follow-
ing new subsection: 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
269 
"(c) ADVERTISING IN A CONVENTION 
PROGRAM OF A NATIONAL 
POLITICAL CONVENTION.—Subsection (a) shall not apply to any amount 
paid or incurred for advertising in a convention program of a political 
party distributed in connection with a convention held for the purpose 
of nominating candidates for the offices of President and Vice Presi-
dent of the United States, if the proceeds from such program are used 
solely to defray the costs of conducting such convention (or a subse-
quent convention of such party held for such purpose) and the amount 
paid or incurred for such advertising is reasonable in light of the busi-
ness the taxpayer may expect to receive— 
"(1) directly as a result of such advertising, or 
" (2) as a result of the convention being held in an area in which 
the taxpayer has a principal place of business." 
(b) P>FECTIVE DATE.—The amendments made by subsection (a) 
shall apply with respect to amounts paid or incurred on or after Janu-
ary 1, 1968. 
SEC. 109. TAX-EXEMPT STATUS OF CERTAIN HOSPITAL SERVICE ORGA-
NIZATIONS. 
(a) EXEMPTION FROM TAX.—Section 501 (relating to exemption 
26^us*c sou^ 
from tax on corporations, etc.) is amended by redesignating subsection 
(e) as subsection (f) and by inserting after subsection (d) the follow-
ing new subsection: 
''(e) 
COOPERATIVE HOSPITAL SERVICE ORGANIZATIONS.—For pur-
poses of this title, an organization shall be treated as an organization 
organized and operated exclusively for charitable purposes, if— 
" (1) such organ'zation is organized and operated solely— 
"(A) to perform, on a centralized basis, one or more of the 
following services which, if performed on its own behalf by a 
hospital which is an organization described in subsection (c) 
(3) and exempt from taxation under subsection (a), would 
constitute activities in exercising or performing the purpose 
or function constituting the basis for its exemption: data 
processing, purchasing, warehousing, billing and collection, 
food, industrial engineering, laboratory, printing, communi-
cations, record center, and personnel (including selection, 
testing, training, and education of personnel) services; and 
"(B) to perform such services solely for two or more hos-
pitals each of which is— 
"(i) an organization described in subsection (c)(3) 
which is exempt from taxation under subsection (a), 
"(ii) a constituent part of an organization described 
in subsection (c) (3) which is exempt from taxation 
under subsection (a) and which, if organized and oper-
ated as a separate entity, would constitute an organiza-
tion described in subsection (c) (3), or 
"(iii) owned and operated by the United States, a 
State, the District of Columbia, or a possession of the 
United States, or a political subdivision or an agency or 
instrumentality of any of the foregoing; 
"(2) such organization is organized and operated on a coopera-
tive basis and allocates or pays, within 8i/^ months after the close 
of its taxable year, all net earnings to patrons on the basis of serv-
ices performed for them; and 
270 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
'"(3) if such organization has capital stock, all of such stock 
outstanding is owned by its patrons. 
For purposes of this title, any organization which, by reason of the 
preceding sentence, is an organization described in subsection (c) (3) 
and exempt from taxation under subsection (a), shall be treated as a 
26 usc^503. ' 
hospital and as an organization referred to in section 503 (b) (5)." 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply to taxable years ending after the date of the enactment 
of this Act. 
SEC. 110. SUBMISSION OF PROPOSALS FOR TAX REFORM. 
Not later than December 31, 1968, the President shall submit to the 
(^ongress proposals for a comprehensive reform of the Internal Reve-
nue C'ode of 1954. 
TITLE 
II—EXPENDITURE 
AND 
RELATED 
CONTROLS 
SEC. 201. LIMITATION ON THE NUMBER OF CIVILIAN OFFICERS AND 
EMPLOYEES IN THE EXECUTIVE BRANCH. 
(a) Except as otherwise provided in this section— 
(1) No person shall be appointed as a full-time civilian em-
ployee to a permanent position in the executive branch during any 
month when the number of such employees is greater than the 
number of such employees on June 30,1966. 
(2) The number of temporary and part-time employees in any 
department or agency in the executive branch during any month 
shall not be greater than the number of such employees during the 
corresponding month of 1967. 
(b)(1) During any period when appointments are otherwise pro-
hibited under subsection (a)(1), the head of any department or 
agency may, except as otherwise provided in this subsection, appoint 
a number of persons as full-time civilian employees in permanent posi-
tions in such department or agency equal to 75 percent of the number 
of vacancies in such positions which have occurred during such period 
by reason of resignation, retirement, removal, or death. 
(2) For purposes of paragraph (1), all agencies which, on the first 
day of any period when appointments are otherwise prohibited under 
subsection (a)(1), have 50 or fewer full-time civilian employees in 
permanent positions shall be treated as one agency, and the Director of 
the Bureau of the Budget (hereinafter in this section referred to as the 
'•Director") shall determine the vacancies in each such agency which 
may be filled by reason of paragraph (1). 
(3) For purposes of paragraph (1), the Director may reassign 
vacancies from one department or agency to another department or 
agency when such reassignment is, in the opinion of the Director, neces-
sary or appropriate because of the creation of a new department or 
agency, because of a change in functions, or for the more efficient opera-
tion of the Government. 
(4) If a full-time civilian employee in a permanent position is trans-
ferred from one department or agency to another department or 
agency— 
(A) such transfer shall be taken into account under paragraph 
(1) as an appointment by the head of the department or agency to 
which he transfers, and 
Vacancies. 
Transfers. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
271 
(B) subsection (a)(1) shall not apply to an appointment to 
the vacancy in the department or agency from which he trans-
ferred and such vacancy shall not he taken into account under 
paragraph (1). 
(c) For purposes of subsection (a) (2), the Director may reassign 
authorized temporary and part-time employment from one department 
or agency to another department or agency when such reassignment is, 
in the opinion of the Director, necessary or appropriate because of the 
creation of a new department or agency, because of a change in func-
tions, or for the more efficient operation of the Government. 
(d) For purposes of this section, there shall not be taken into 
account— 
(1) any position filled by appointment by the President by and 
with the advice and consent of the Senate, other than for purposes 
of determining under subsection (a) (1) the number of full-time 
civilian employees in permanent positions in the executive branch 
at any time, 
(2) casual employees or employees serving without compensa-
tion, and 
(3) those employees (not exceeding 70,000 during any month) 
appointed under the President's program to provide summer 
employment for economically or educationally disadvantaged 
persons between the ages of 16 and 22. 
(e) The Director shall maintain a continuous study of all appropri-
ations and contract a,uthorizations in relation to personnel employed 
and shall reserve from expenditure the savings in salaries and wages 
resulting from the operation of this section, and any savings in other 
categories of expense which he determines will result from such 
operation. 
(f) The departments and agencies in the executive branch shall sub-
mit to the Director such information as may be necessary to enable him 
to carry out his functions under this section. 
(g) The Director shall submit to the Senate and the House of Repre-
sentatives at the end of each calendar quarter, beginning with the quar-
ter ending September 30,1968, a, report on the operation of this section. 
(h) Nothing in this section shall supersede or modify the reemploy-
ment rights of any person under section 9 of the Military Selective 
Service Act of 1967 or any other provision of law conferring reemploy-
ment rights upon persons who have performed active duty in the 
Armed Forces. 
(i) The Director shall prescribe such regulations as he deems neces-
sary or appropriate to carry out the provisions of this section. 
(j) This section (other than subsection (i)) shall take effect on the 
first day of the first month which begins after the date of the enactment 
of this Act. 
SEC. 202. REDUCTION OF $6 BILLION IN EXPENDITURES DURING 
FISCAL YEAR 1969. 
(a) Expenditures and net lending during the fiscal year ending 
June 30,1969, under the Budget of the United States Government (es-
timated on page 55 of House Document No. 225, Part 1, 90th Congress, 
as totaling $186,062,000,000), shall not exceed $180,062,000,000, except 
by expenditures and net lending— 
(1) which the President may determine are necessary for special 
support of Vietnam operations in excess of the amounts estimated 
therefor in the Budget, 
(2) for interest in excess of the amounts estimated therefor in 
the Budget, 
Exceptions. 
Report to 
Congress. 
Armed Forces. 
Reemployment 
rights . 
62 Stat. 614. 
50 u s e app. 
459. 
Effective date. 
Exceptions. 
Vietnam opera-
tions. 
Interest. 
272 
PUBLIC LAW 90-364-JUNE 28, 1968 
[82 STAT. 
Veterans' bene-
fits. 
Social Security 
Act trust funds. 
Exceptions. 
Vietnam opera-
tions. 
Interest. 
Veterans' bene-
fits. 
Social Security 
Act trust funds. 
Report to Con-
gress. 
Report to Con-
gress. 
(8) for veterans' benefits and services in excess of the amounts 
estimated therefor in the Budget, and 
(4) for payments from trust funds established by the Social 
Security Act, as amended, in excess of the amounts estimated 
therefor inthe Budget, 
(b) The President shall reserve from expenditure and net lending, 
from appropriations or other obligational authority heretofore or 
hereafter made available, such amounts as may be necessary to effec-
tuate the provisions of subsection (a). 
SEC. 203. REDUCTION OF $10 BILLION IN NEW OBLIGATIONAL AU-
THORITY. 
(a) The total new obligational authority and loan authority for the 
fiscal year ending June 80, 1969, provided by law heretofore or here-
after enacted (estimated on page 55 of House Document No. 225, Part 
1,90th Congress, as $201,723,000,000) shall not exceed $191,723,000,000, 
except for new obligational authority and loan authority— 
(1) w^hich the President may determine are necessary for special 
support of Vietnam operations in excess of the amounts estimated 
therefor in the Budget, 
(2) for interest in excess of the amounts estimated therefor in 
the Budget, 
(3) for veterans' benefits and services in excess of the amounts 
estimated therefor in the Budget, and 
(4) for payments from trust funds established by the Social 
Security Act, as amended, in excess of the amounts estimated 
therefor in the Budget. 
(b) In the event that the total amount of new obligational authority 
and loan authority for the fiscal year ending June 30,1969, exceeds the 
limitation prescribed by subsection (a), the President shall reserve 
from such obligational and loan authority such amounts a.s may be 
necessary to effectuate the provisions of subsection (a). The amounts 
so reserved (other than any amounts reserved from trust funds) are 
hereby rescinded as of the close of June 30,1969. The President, at the 
time of the submission of the Budget for the fiscal year ending June 
30, 1970, shall make a report to the Congress identifying the amounts 
reserved pursuant to this paragraph. 
SEC. 204. SPECIFIC RECOMMENDATIONS FOR $8 BILLION RESCISSION 
IN OLD OBLIGATIONAL AUTHORITY. 
The President shall cause a special study and analysis to be made 
of unobligated balances of appropriations and other obligational and 
loan authority available for obligation or commitment during the fiscal 
year ending June 30, 1969, which will remain available for obligation 
or commitment after June 30, 1969, and make a report thereon to the 
Congress. Such report shall be made at the time of the submission of 
the Budget for the fiscal year ending June 30, 1970, and shall include 
specific recommendations for legislation to rescind not less than 
$8,000,000,000 of such unobligated balances. 
SEC. 205. APPLICATION OF CERTAIN FORMULAS. 
In the administration of any program as to which— 
(1) the amount of expenditures or obligations is limited pur-
suant to section 202 or 203, and 
(2) the allocation, ^rant, apportionment, or other distribution 
of funds among recipients is required to be determined by appli-
cation of a formula involving the amount appropriated or other-
wise made available for distribution, 
the amount available for expenditure or obligation (as determined by 
the President) shall be substituted for the amount appropriated or 
otherwise made available in the application of the formula. 
82 STAT. ] 
PUBLIC LAW 90-364-JUNE 28, 1968 
273 
TITLE III—SOCIAL SECURITY ACT AMENDMENTS 
SEC. 301. LIMITATION ON NUMBER OF CHILDREN WITH RESPECT TO 
WHOM FEDERAL PAYMENTS MAY BE MADE UNDER PRO-
GRAM OF AID TO FAMILIES WITH DEPENDENT CHILDREN. 
Subsection (d) of section 403 of the Social Security Act is amended 
Ji st^«^-g894. 
(1) by inserting "(1)" immediately after "(d)", (2) by inserting "(ex-
cept fhe succeeding paragraphs of this subsection)" immediately after 
"Act", (3) by striking out "June 30, 1968" and inserting in lieu 
thereof "June 30, 1969", and (4) bv adding at the end of such sub-
section the following new paragraphs: 
"(2) In the case of any State which is determined by the Secrettiry 
to have effectuated, in compliance with or in reliance upon or in con-
sideration of a judicial decision (as defined in paragraph (3)), a 
policy of providing aid to families- with dependent children under its 
State plan approved under this part to or on behalf of individuals 
who, except for such policy, would not be eligible for such aid, the 
av^erage monthl}' number of dependent children under the age of 18 
who have been deprived of parental support or care by reason of the 
continued absence from the home of a parent with respect to whom 
payments under this section were made to the State for the calendar 
quarter beginning January 1, 1968, shall, for purposes of applying 
the provisions of paragraph (1), be increased by the average monthly 
number, in the calendar quarter beginning April 1, 1969, of children 
under the age of 18 who are deprived of parental support or care by 
reason of the continued absence from the home of a parent and who 
by reason of such policy l)egan to receive such aid after March 1968 
and received such aid during the calendar quarter beginning April 1, 
1969. 
"(3) As used in paragraph (2), the term 'judicial decision' means ci'sYon'^''''^^'^^ 
any decision by a court of the United States of competent jurisdiction 
in any case or controversy in which there is decided the issue of the 
validity, under the United States Constitution, of any law, rule, regu-
lation, or policy of a State under which aid to families with dependent 
children is denied to individuals otherwise eligible therefor because 
of failure to meet duration of residence requirements or because of 
the relationship between a male individual and the mother of the child 
or children with respect to whom such aid is sought." 
SEC. 302. AID TO FAMILIES WITH DEPENDENT CHILDREN IN CASE OF 
UNEMPLOYED FATHERS RECEIVING UNEMPLOYMENT 
COMPENSATION. 
Section 407(b) (2) (C) of the Social Security Act is amended to read 
si stat. ss-s. 
as follows: 
_ 
^ 
42 use 607. 
"(C) for the denial of aid to families with dependent chil-
dren to any child or relative specified in subsection (a)— 
"(i) if, and for so long as, such child's father is not 
currently registered with the public employment offices 
in the State, and 
"(ii) with respect to any week for which such child's 
father receives unemployment compensation under an 
unemployment compensation law of a State or of the 
United States." 
274 
PUBLIC LAW 90-365-JUNE 29, 1968 
[82 STAT. 
81 Stat. 901. 
42 u s e 1396b. 
42 use 1396b 
note. 
Effective date. 
SEC. 303. FEtJERAL PAYMENTS UNDER MEDICAL ASSISTANCE PRO-
GRAM FOR CERTAIN SERVICES INCLUDIBLE UNDER SUP-
PLEMENTARY MEDICAL INSURANCE PROGRAM. 
(a) (1) Section 1903(b) (2) of the Social Security Act is amended 
by striking out "1967"' and inserting in lieu thereof "1969". 
(2) Section 222(d) of the Social Security Amendments of 1967 is 
amended by striking out "1967" and inserting in lieu thereof "1969". 
(b) The amendments made by subsection (a) shall be efl'ective with 
respect to calendar quarters beginning after December 31, 1967. 
Approved June 28, 1968, 4:02 p.m. 
June 29, 1968 
[H. R. 6157] 
Public Law 90-365 
AN ACT 
To amend section 3620 of the Revised Statutes with respect to payroll deductions 
for Federal employees. 
Federal employ-
ees. 
Payroll deduc-
tions. 
79 Stat. 582. 
Definitions. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That subsections 
(b) and (c) of section 3620 of the Revised Statutes, as amended (31 
T^.S.C. 492), are amended to read as follows: 
"(b)(1) Notwithstanding subsection (a) of this section or any other 
provision of law, and under regulations to be prescribed by the Sec-
retary of the Treasury, the head of an agency shall, upon the written 
request of an employee of the agency to whom a payment for wages or 
salary is to be made, authorize a disbursing officer to make the payment 
in the form of one, two, or three checks (the number of checks and 
the amount of each, if more than one, to be designated by such 
employee) by sending to each financial organization designated by such 
employee a check that is drawn in favor of the organization and is for 
credit to the checking account of such employee or is for the deposit 
of savings or purchase of shares for such employee: Provided, That 
the agency shall not be reimbursed for the cost of sending one check 
requested by such employee but shall be reimbursed for the additional 
cost of sending any additional check requested by such employee by 
the financial organization to which such check is sent. For the pur-
poses of the foregoing proviso, the check for which the agency shall 
not be reimbursed shall be the check in the largest amount. 
"(2) If more than one employee to whom a payment is to be made 
designate the same financial organization, the head of an agency 
may, upon the written request of such employee and under regula-
tions to be prescribed by the Secretary of the Treasury, authorize a 
disbursing officer to make the payment by sending to the organization 
a check that is drawn in favor of the organization for the total 
amount designated by those employees and by specifying the amount 
to be credited to the account of each of those employees. 
"(3) In this subsection, the term 'agency' means any department, 
agency, independent establishment, board, office, commission, or other 
establishment in the executive, legislative (except the Senate and 
House of Representatives), or judicial branch of the Government, 
any wholly owned or controlled Government corporation, and the 
municipal government of the District of Columbia; and the term 
'financial organization' means any bank, savings bank, savings and 
loan association or similar institution, or Fedet'al or State chartered 
credit union. 
"(c) Payment by the United States in the form of more than one 
check, drawn in accordance with subsection (b) and properly en-
dorsed, shall constitute a full acquittance for the amount due to the 
employee requesting payment." 
Approved June 29, 1968.