Section 1 Short title
This Act may be cited as the “Individual Rate Simplification Act of 2015”.
Individual Rate Simplification Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to simplify individual income tax rates.
Sec. 2 Simplified individual income tax rates
In general— Section 1(i) of the Internal Revenue Code of 1986 is amended by striking paragraphs (2) and (3), by redesignating paragraph (4) as paragraph (3), and by inserting after paragraph (1) the following new paragraph:
“(2) 20- and 30-percent rate brackets
“(A) In general—In the case of taxable years beginning after December 31, 2015, the rate of tax under subsections (a), (b), (c), and (d) on taxable income which would (without regard to this paragraph) be taxed at a rate over 15 percent shall be—
“(i) 20 percent on taxable income not over $1,000,000, and
“(ii) 30 percent on taxable income over $1,000,000.
“(B) Inflation adjustment—In prescribing the tables under subsection (f) which apply with respect to taxable years beginning after 2016, the $1,000,000 amount in subparagraph (A) shall be increased by an amount equal to—
“(i) such dollar amount, multiplied by
“(ii) the cost-of-living adjustment determined under subsection (f)(3) for the calendar year in which the taxable year begins determined by substituting “calendar year 2015” for “calendar year 1992” in subparagraph (B) thereof.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2015.