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Show Income Tax Rate Change Effective New Year commissioner oi internal nev-enue nev-enue T. Coleman Andrews has announced in Washington that the law provides for changes on Jan. 1, 1954 in the rates for Federal Fed-eral income tax withholding and for employer tax and employee tax under the Federal Insurance Contributions Act (for old age and survivors insurance). This was reported today by District Director of Internal Revenue Rev-enue Charles I. Fox, who explained ex-plained that the rate of income tax withholding will be reduced 20 per cent to 18 per cent and that the law increases the employer em-ployer tax and the employee tax from lVs per cent for each tax to 2 per cent for each tax. "These rates will apply to wages paid on or after Jan. 1, 1954, even though the wages were earned in 1953," director Fox added. ad-ded. "Tax tables for income tax withholding and for employees tax deductions on and after Jan. 1, 1954, are included in a new revision re-vision of Circular B, Employer's Tax Guide," Director Fox said. "District Directors of Internal Revenue will mail Circular E as early as possible in December to those employers who have been reporting the taxes each quarter on form 911." |