,,ii #aac? ,,congress #a/ ,session ,s4 #afaf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,octob] #cj1 #bjac,mr4 ,lee introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide = simplification1 to r$uce ! numb] ( tax brackets1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,family ,fairness & ,opportunity ,tax ,re=m ,act4 #b4 ,consolidation ( tax brackets & modifications to tax rates 7a7 ,9 g5]al ,section #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subsections 7a7 ?r\gh 7d7 & ins]t+ ! foll[+3 7a7 ,9 g5]al ,!re is h]eby impos$ on ! taxable income ( e individual a tax det]m9$ 9 accordance ) ! foll[+ table3 ,if taxable income is3,! tax is3,n ov] ! fir/ bracket doll> limit#ae ( taxable income4,ov] ! fir/ bracket doll> limit,an am\nt equal to #ae ( ! fir/ bracket doll> limit1 plus #ce ( ! excess ov] su* fir/ bracket doll> limit4 7b7 ,fir/ bracket doll> limit ,= purposes ( ?is section1 ! fir/ bracket doll> limit is-- 7#a7 9 ! case (-- 7,a7 a m>ri$ individual 7z def9$ 9 section #ggjc7 :o makes a s+le return jo9tly ) ! individual's sp\se "u section #fjac1 or 7,b7 a surviv+ sp\se 7z def9$ 9 section #b7;a771 #bjj p]c5t ( ! am\nt det]m9$ "u p>agraph 7#b71 & 7#b7 9 ! case ( any o!r individual1 #hg1hej4 7c7 ,inflation adju/m5t = rates applicable to individuals 7#a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ! doll> am\nt 9 subsection 7b77#b7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u subsection 7f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ cal5d> ye> #bjab = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7#b7 ,r\nd+ ,if any increase det]m9$ "u p>agraph 7#a7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #ej4 4 7b7 ,treatm5t ( capital ga9s rate 7#a7 ,z]o p]c5t rate ,clause 7i7 ( section #a7;h77#a77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7i7 #cf1bej 7#bjj p]c5t ( su* am\nt 9 ! case ( a jo9t return or a surviv+ sp\se 7z def9$ 9 section #b7;a7771 ov] 4 7#b7 #bj p]c5t rate ,subclause 7,i7 ( section #a7;h77#a77;,c77ii7 ( su* ,code is am5d$ to read z foll[s3 7,i7 #djj1jjj 7#dej1jjj 9 ! case ( a jo9t return or a surviv+ sp\se 7z def9$ 9 section #b7;a7771 ov] 4 7#c7 ,inflation adju/m5t ,subsection 7h7 ( section #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ea* ( ! doll> am\nts 9 subp>agraphs 7,b77i7 & 7,c77ii77,i7 ( p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u subsection 7f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ cal5d> ye> #bjab = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7,b7 ,r\nd+ ,if any increase det]m9$ "u p>agraph 7#a7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #ej4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,subsection 7f7 ( section #a ( su* ,code is am5d$-- 7,a7 by /rik+ ! head+ & ins]t+ ,inflation adju/m5ts = e/ates & tru/s1 7,b7 9 p>agraph 7#a71 by /rik+ subsections 7a71 7b71 7c71 7d71 & 7e7 & ins]t+ subsection 7e71 7,c7 9 p>agraph 7#b7-- 7i7 by /rik+ subsection 7a71 7b71 7c71 7d71 & 7e71 z ! case may be1 & ins]t+ subsection 7e71 & 7ii7 by /rik+ except z provid$ 9 p>agraph 7#h711 & 7,d7 by /rik+ p>agraphs 7#f71 7#g71 & 7#h7 & ins]t+ ! foll[+3 7#f7 ,r\nd+ ,if any increase det]m9$ "u p>agraph 7#b77;,a7 is n a multiple ( #ej1 su* increase %all be r\nd$ to ! next l[e/ multiple ( #ej4 4 7#b7 ,section #a ( su* ,code is am5d$ by /rik+ subsection 7i74 7#c7 ,section #b ( su* ,code is am5d$ by /rik+ subsection 7b74 7#d7 ,p>agraph 7#b7 ( section #be;,b7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#b7 ,o!r returns ,9 ! case ( any taxpay] n describ$ 9 p>agraph 7#a71 ! applicable p]c5tage %all be det]m9$ "u p>agraph 7#a7 except t su* p>agraph %all be appli$ by sub/itut+ = ea* doll> am\nt !re9 7z adju/$ "u p>agraph 7#c77 a doll> am\nt equal to #ej p]c5t ( su* doll> am\nt4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #c4 ,repeal ( alt]native m9imum tax 7a7 ,9 g5]al ,subsection 7a7 ( section #ee ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new flu% s5t5ce3 ,no tax %all be impos$ by ?is section = any taxable ye> beg9n+ aft] ,decemb] #ca1 #bjac1 & ! t5tative m9imum tax ( any taxpay] = any su* taxable ye> %all be z]o = purposes ( ?is title4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #d4 ,additional *ild tax cr$it 7a7 ,9 g5]al ,section #bd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7g7 ,additional refundable cr$it 7#a7 ,9 g5]al ,9 addition to ! am\nt all[$ "u subsection 7a71 !re %all be all[$ z a cr$it aga9/ tax impos$ by ?is *apt] = ! taxable ye> ) respect to ea* qualify+ *ild ( ! taxpay] an am\nt equal to #b1ejj4 7#b7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ! doll> am\nt 9 p>agraph 7#a7 %all be ! great] ( ! am\nt 9 effect "u su* p>agraph = ! prec$+ taxable ye> or ! am\nt det]m9$ "u subp>agraph 7,b74 7,b7 ,adju/m5t 7i7 ,9 g5]al ,n lat] ?an ,novemb] #a ( #bjac1 & ea* subsequ5t cal5d> ye>1 ! ,secret>y %all make & publi% ! det]m9ation "u ?is subp>agraph = ! succe$+ cal5d> ye>4 7ii7 ,am\nt det]m9$ ,! am\nt det]m9$ "u ?is subp>agraph = any cal5d> ye> is an am\nt equal to-- 7,i7 #b1ejj1 multipli$ by 7,,ii7 ! ratio ( ! national av]age wage index 7z def9$ 9 section #bji7k77#a7 ( ! ,social ,security ,act7 = ! cal5d> ye> be=e ! cal5d> ye> 9 :i* ! det]m9ation "u ?is subp>agraph is made to ! national av]age wage index 7z s def9$7 = #bjab4 7iii7 ,r\nd+ ,if any increase det]m9$ "u clause 7i7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #ej4 7#c7 ,portion ( additional cr$it refundable 7,a7 ,9 g5]al ,! aggregate cr$its all[$ to a taxpay] "u subp>t ,c %all be increas$ by ! less] (-- 7i7 ! cr$it :i* w\ld be all[$ "u ?is section )\t reg>d to ?is subsection & ! limitation "u section #bf7;a71 or 7ii7 ! am\nt by :i* ! aggregate am\nt ( cr$its all[$ by ?is subp>t 7det]m9$ )\t reg>d to ?is subsection7 w\ld increase if ! limitation impos$ by section #bf7;a7 7 increas$ by ! excess 7if any7 (-- 7,i7 ! taxpay]'s social security taxes = ! taxable ye>1 ov] 7,,ii7 ! cr$it all[$ "u section #cb = ! taxable ye>4 ,! am\nt ( ! cr$it all[$ "u ?is p>agraph %all n be treat$ z a cr$it all[$ "u ?is subp>t & %all r$uce ! am\nt ( cr$it o!rwise all[able "u p>agraph 7#a7 )\t reg>d to section #bf7;a74 7,b7 ,social security taxes ,= purposes ( subp>agraph 7,a71 ! t]m social security taxes has ! mean+ giv5 su* t]m "u subsection 7d77#b71 except t-- 7i7 su* t]m %all include ! am\nt ( taxes impos$ by section #caaa & #cbba7;a7 on am\nts paid ) respect to su* taxpay] dur+ ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 & 7ii7 9 apply+ clauses 7ii7 & 7iii7 ( subp>agraph 7,a7 !re(1 #ajj p]c5t %all be sub/itut$ = #ej p]c5t ea* place x appe>s4 7,c7 ,coord9ation ) subsection 7a7 ,= purposes ( ?is title1 ! am\nt ( any refundable cr$it all[$ by reason ( subsection 7d7 %all be tak5 into acc\nt be=e ! application ( ?is p>agraph4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,subsection 7a7 ( section #bd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ = :i* ! taxpay] is all[$ a d$uction "u section #aea4 7#b7 ,subp>agraph 7,a7 ( section #bd7;d77#a7 ( su* ,code is am5d$ by /rik+ section & ins]t+ subsection 7a74 7c7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #e4 ,p]sonal cr$it 7a7 ,9 g5]al 7#a7 ,all[ance ( cr$it ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #be;,d ! foll[+ new section3 #be;,e4 ,p]sonal cr$it 7a7 ,all[ance ( cr$it ,9 ! case ( an individual1 !re %all be all[$ a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to-- 7#a7 9 ! case ( an individual :o does n file a jo9t return1 #b1jjj1 & 7#b7 9 ! case ( an individual :o files a jo9t return or a surviv+ sp\se 7z def9$ 9 section #b7;a771 #bjj p]c5t ( ! am\nt 9 effect "u p>agraph 7#a74 7b7 ,limitation ,no cr$it %all be all[$ "u subsection 7a7 to any individual :o is a qualify+ *ild 7z def9$ 9 section #bd7;c77 ) respect to :om a cr$it is all[$ "u section #bd to ano!r taxpay] = any taxable ye> beg9n+ 9 ! same cal5d> ye> z su* taxable ye>4 7c7 ,inflation adju/m5t 7#a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ! doll> am\nt "u subsection 7a77#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ cal5d> ye> #bjab = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7#b7 ,r\nd+ ,if any increase det]m9$ "u p>agraph 7#a7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #ej4 4 7#b7 ,con=m+ am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #be;,d ! foll[+ new item3 ,sec4 #be;,e4 ,p]sonal cr$it4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #f4 ,repeal ( /&>d d$uction1 c]ta9 p]sonal exemptions1 & itemiz$ d$uctions o!r ?an ! mortgage int]e/ d$uction & *>itable contribution d$uction 7a7 ,repeal ( /&>d d$uction & itemiz$ d$uctions 7#a7 ,9 g5]al ,section #fc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subsections 7b7 ?r\gh 7g7 & ins]t+ ! foll[+3 7b7 ,itemiz$ d$uctions n all[$ = individuals 7#a7 ,9 g5]al ,9 ! case ( an individual1 no d$uction %all be all[$ = any itemiz$ d$uction4 7#b7 ,itemiz$ d$uctions ,= purposes ( ?is subtitle1 ! t]m itemiz$ d$uctions means ! d$uctions all[able "u ?is *apt] o!r ?an-- 7,a7 ! d$uction = qualifi$ resid5ce int]e/ 7z def9$ 9 section #afc7;h77#c771 7,b7 ! d$uction all[$ "u section #agj1 & 7,c7 any o!r d$uctions all[able 9 arriv+ at adju/$ gross income4 4 7#b7 ,con=m+ am5dm5t ,subsection 7a7 ( section #fc is am5d$ by /rik+ 7o!r ?an ! /&>d d$uction74 7b7 ,repeal ( p]sonal exemptions = taxpay] & sp\se ,section #aea ( su* ,code is am5d$ by /rik+ subsection 7b74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #g4 ,modifications to mortgage int]e/ d$uction 7a7 ,9 g5]al ,clause 7ii7 ( section #afc7;h77#c77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #a1jjj1jjj 7#ejj1jjj 9 ! case ( a m>ri$ individual fil+ a sep>ate return & ins]t+ #cjj1jjj1 & 7#b7 by /rik+ #a1jjj1jjj 9 ! head+ & ins]t+ #cjj1jjj4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to indebt$ness incurr$ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #h4 ,repeal ( additional heal? taxes 7a7 ,repeal ( additional hospital insurance tax on high-,income taxpay]s 7#a7 ,,fica 7,a7 ,9 g5]al ,section #caja7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7b7 ,hospital insurance ,9 addition to ! tax impos$ by ! prec$+ subsection1 !re is h]eby impos$ on ! income ( e individual a tax equal to #a4de p]c5t ( ! wages 7z def9$ 9 section #caba7;a77 receiv$ by him ) respect to employm5t 7z def9$ 9 section #caba7;b774 4 7,b7 ,con=m+ am5dm5ts 7i7 ,section #cajb ( su* ,code is am5d$ by /rik+ subsection 7f74 7ii7 ,section #ffed ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subsection 7m7 & by r$esignat+ subsections 7n7 z subsection 7m74 7#b7 ,,seca 7,a7 ,9 g5]al ,section #adja7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7b7 ,hospital insurance ,9 addition to ! tax impos$ by ! prec$+ subsection1 !re is h]eby impos$ = ea* taxable ye>1 on ! self-employm5t income ( e individual1 a tax equal to #b4ij p]c5t ( ! am\nt ( ! self-employm5t income = su* taxable ye>4 4 7,b7 ,con=m+ am5dm5ts 7i7 ,section #afd7;f7 ( su* ,code is am5d$ by /rik+ 7o!r ?an ! taxes impos$ by section #adjb7;b77#b774 7ii7 ,section #adjb7;a77#ab77;,b7 ( su* ,code is am5d$ by /rik+ 7det]m9$ )\t reg>d to ! rate impos$ "u p>agraph 7#b7 ( section #adja7;b774 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply ) respect to remun]ation receiv$1 & taxable ye>s beg9n+ aft]1 ,decemb] #ca1 #bjac4 7b7 ,repeal ( une>n$ income m$ic>e contribution 7#a7 ,9 g5]al ,subtitle ,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ *apt] #b;,a4 7#b7 ,con=m+ am5dm5ts 7,a7 ,section #ffed ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 9 subsection 7a71 by /rik+ ! tax "u *apt] #b1 & ! tax "u *apt] #b;,a & ins]t+ & ! tax impos$ "u *apt] #b1 & 7ii7 9 subsection 7f7-- 7,i7 by /rik+ p>agraph 7#c7 & r$esignat+ p>agraph 7#d7 z p>agraph 7#c71 & 7,,ii7 by /rik+ plus at ! end ( p>agraph 7#b7 & ins]t+ m9us4 7,b7 ,! table ( *apt]s = sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to *apt] #b;,a4 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #i4 ,te*nical & con=m+ am5dm5ts ,! ,secret>y ( ! ,treasury or ! ,secret>y's delegate %all1 n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is ,act1 submit to ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives & ! ,committee on ,f9ance ( ! ,s5ate a draft ( any te*nical & con=m+ *anges 9 ! ,int]nal ,rev5ue ,code ( #aihf :i* are necess>y to reflect ?r\gh\t su* ,code ! purposes ( ! provisions (1 & am5dm5ts made by1 ?is ,act4