S. 1210 — Introduced in Senate

II 115th CONGRESS 1st Session S. 1210 IN THE SENATE OF THE UNITED STATES May 24, 2017 Mr. Rounds (for himself and Mr. Hoeven) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to reduce tax rates across the board. 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.