US Codex
Bill
Notes

To amend the Internal Revenue Code of 1986 to reduce tax rates across the board.

S. 1210 · 115th Congress · May 24, 2017 · Lineage

A BILL

Section 1 Reduction in tax rates

(a)
Individual tax rates—
(1)
In general—
(A)
Reduction in rate for initial bracket amount— Clause (i) of section 1(i)(1)(A) of the Internal Revenue Code of 1986 is amended by inserting “(8 percent for taxable years beginning after December 31, 2017)” after “10 percent”.
(B)
Reduction in rate for 15-, 25-, 28-, and 33-percent rate brackets— Paragraph (2) of section 1(i) of such Code is amended to read as follows:

“(2) Reduction in rates—The tables under subsections (a), (b), (c), (d), and (e) shall be applied—

“(A) by substituting “13%” for “15%” each place it appears,

“(B) by substituting “23%” for “28%” each place it appears,

“(C) by substituting “26%” for “31%” each place it appears, and

“(D) by substituting “31%” for “36%” each place it appears.”

(C)
Reduction in rate for highest rate brackets— Subparagraph (A) of section 1(i)(3) of such Code is amended—
(i)
by inserting “(33 percent for taxable years beginning after December 31, 2017)” after “35 percent” in clause (i), and
(ii)
by inserting “(37.6 percent for taxable years beginning after December 31, 2017)” after “39.6 percent” in clause (ii).
(D)
Conforming amendments—
(i)
Subparagraph (B) of section 1(g)(7) of the Internal Revenue Code of 1986 is amended by striking “10 percent” and inserting “8 percent”.
(ii)
Paragraph (1) of section 1(h) of such Code is amended—
(I)
by striking “25 percent” in subparagraph (A)(ii)(I) and inserting “23 percent”,
(II)
by striking “25 percent” in subparagraph (B)(i) and inserting “23 percent”, and
(III)
by striking “39.6 percent” in subparagraph (C)(ii)(I) and inserting “37.6 percent”.
(iii)
Section 3402(p)(2) of such Code is amended by striking “10 percent” and inserting “8 percent”.
(2)
Capital gains rates—
(A)
In general— Paragraph (1) of section 1(h) of the Internal Revenue Code of 1986 is amended—
(i)
by striking “15 percent” in subparagraph (C) and inserting “13 percent”,
(ii)
by striking “20 percent” in subparagraph (D) and inserting “18 percent”,
(iii)
by striking “25 percent” in subparagraph (E) and inserting “23 percent”, and
(iv)
by striking “28 percent” in subparagraph (F) and inserting “26 percent”.
(B)
Rate under alternative minimum tax— Paragraph (3) of section 55(b) of such Code is amended—
(i)
by striking “15 percent” in subparagraph (C) and inserting “13 percent”,
(ii)
by striking “20 percent” in subparagraph (D) and inserting “18 percent”, and
(iii)
by striking “25 percent” in subparagraph (E) and inserting “23 percent”.
(C)
Conforming amendments— The following sections are each amended by striking “20 percent” and inserting “18 percent”:
(i)
Section 1445(e)(1).
(ii)
The second sentence of section 7518(g)(6)(A).
(iii)
Section 53511(f)(2) of title 46, United States Code.
(b)
Corporate tax rates—
(1)
In general— Section 11(b) of the Internal Revenue Code of 1986 is amended—
(A)
in paragraph (1)—
(i)
by striking “15 percent” in subparagraph (A) inserting “13 percent”,
(ii)
by striking “25 percent” in subparagraph (B) and inserting “23 percent”,
(iii)
by striking “34 percent” in subparagraph (C) and inserting “32 percent”, and
(iv)
by striking “35 percent” in subparagraph (C) and inserting “33 percent”, and
(B)
in paragraph (2), by striking “35 percent” and inserting “33 percent”.
(2)
Conforming amendments—
(A)
Section 1201(a) of such Code is amended by striking “35 percent” each place it appears and inserting “33 percent”.
(B)
Paragraphs (1) and (2) of section 1445(e) of such Code are each amended by striking “35 percent” and inserting “33 percent”.
(c)
Effective date—
(1)
In general— Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2017.
(2)
Amendments related to withholding— The amendments made by subsections (a)(1)(D)(iii) and (c)(2)(B) shall take effect on January 1, 2018.