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Show Changes rioted In Income Tax Withholding Jan. 1 Commissioner of Internal Revenue Re-venue T. Coleman Andrews has announced in Washington that the law provides for changes on January 1, 1954, in the rates for Federal income tax withholding with-holding 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 Charles I. Fox, who explained that the rate of income in-come tax withholding will be reduced from 20 per cent to 18 per cent and that the law in creases tne employer tax and employee tax from IVz 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. "Tax tables for income tax I withholding and for employee tax deductions on and after Jan. 1, 1954, are included in a .new revision of Circular E, Employer's Em-ployer's Tax Guide," Director Fox said. "District Directors of Internal Revenue will mail cir-cufar cir-cufar E as early as possible in December to those employers who have been reporting the taxes each quarter on Form 941." |