Title VIII, as we have said, lays two different types of tax, an "
income tax on employees" and "an
excise tax on employers." The income tax on employees is measured by wages paid during the calendar year. ' 801. The
excise tax on the employer is to be paid "with respect to having individuals in his employ," and, like the tax on employees, is measured by wages. ' 804. Neither tax is applicable to certain types of employment, such as agricultural labor, domestic service, service for the national or state governments, and service performed by persons who have attained the age of 65 years. ' 811(b). The two taxes are at the same rate. '' 801, 804. For the years 1937 to 1939, inclusive, the rate for each tax is fixed at one percent. Thereafter the rate increases 1/2 of 1 percent every three years, until, after December 31, 1948, the rate for each tax reaches 3 percent. Ibid. In the computation of wages, all remuneration is to be included except so much as is in excess of $3,000 during the calendar year affected. ' 811(a). The income tax on employees is to be collected by the employer, who is to deduct the amount from the wages "as and when paid." ' 80a(a). He is indemnified against claims and demands of any person by reason of such payment. Ibid.
The proceeds of both taxes are to be paid into the Treasury like internal revenue taxes generally, and are not earmarked in any way. ' 807(a). There are penalties for nonpayment. ' 807(c).