Reg. § 1.1348-1 Fifty-percent maximum tax on earned income.
Section provides generally that for taxable years beginning after December 31, 1971, the maximum tax rate applicable to the earned taxable income of an individual, estate, or trust is not to exceed 50 percent. In the case of an estate or trust, earned income includes only amounts which constitute income in respect of a decedent within . For taxable years beginning after December 31, 1970, and before January 1, 1972, the maximum rate is 60 percent. Section does not apply if the taxpayer chooses the benefits of income averaging under sections through 1305. Section does not apply to a married individual who does not file a joint return with his spouse for the taxable year. For purposes of section , an individual's marital status shall be determined under section and the regulations thereunder.
[T.D. 7446, 41 FR 55337, Dec. 20, 1976]