[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4518 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4518

To amend the Internal Revenue Code of 1986 to lower the corporate rate 
       of income tax to the OECD average, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2016

 Mr. Emmer of Minnesota (for himself, Mrs. Love, Mr. Mulvaney, and Mr. 
  Williams) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to lower the corporate rate 
       of income tax to the OECD average, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Rate Equality and Trade 
Empowerment Jobs Act of 2016'' or the ``Create Jobs Act''.

SEC. 2. OECD RATE OF CORPORATE INCOME TAX.

    (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 
is amended to read as follows:
    ``(b) Amount of Tax.--
            ``(1) In general.--The amount of the tax imposed by 
        subsection (a) shall be an amount equal to the applicable 
        percentage of the taxable income.
            ``(2) Applicable percentage.--For purposes of this 
        section--
                    ``(A) In general.--Subject to section 3 of the 
                Corporate Rate Equality and Trade Empowerment Jobs Act 
                of 2016, the applicable percentage for taxable years 
                beginning in any calendar year shall be the greater 
                of--
                            ``(i) 10 percent, or
                            ``(ii) the percentage determined by the 
                        Secretary under subparagraph (B) for the 
                        taxable year.
                    ``(B) Determination by secretary.--Not later than 
                November 1, 2016, and every 5 years thereafter, the 
                Secretary shall determine the percentage that is 5 
                percentage points less than the mean of the central 
                government corporate income tax rates most recently 
                published as of November 1 of the preceding calendar 
                year by the Organisation for Economic Co-operation and 
                Development (hereinafter referred to as `OECD') for 
                OECD countries other than the United States. The 
                percentage determined under the preceding sentence 
                shall apply to taxable years beginning in the 
                subsequent calendar year and each of the 4 calendar 
                years thereafter.''.
    (b) Conforming Amendments.--
            (1) Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) of 
        such Code are each amended by striking ``the highest rate of 
        tax specified in section 11(b)(1)'' and inserting ``the rate of 
        tax in effect for the taxable year under section 11(b)''.
            (2)(A) Section 1445(e)(1) of such Code is amended--
                            (i) by striking ``35 percent'' and 
                        inserting ``the rate of tax in effect for the 
                        taxable year under section 11(b)'', and
                            (ii) by striking ``of the gain'' and 
                        inserting ``multiplied by the gain''.
                    (B) Section 1445(e)(2) of such Code is amended by 
                striking ``35 percent of the amount'' and inserting 
                ``the rate of tax in effect for the taxable year under 
                section 11(b) multiplied by the amount''.
                    (C) Section 1445(e)(6) of such Code is amended--
                            (i) by striking ``35 percent'' and 
                        inserting ``the rate of tax in effect for the 
                        taxable year under section 11(b)'', and
                            (ii) by striking ``of the amount'' and 
                        inserting ``multiplied by the amount''.
                    (D) Section 1446(b)(2)(B) of such Code is amended 
                by striking ``the highest rate of tax specified in 
                section 11(b)(1)'' and inserting ``the rate of tax in 
                effect for the taxable year under section 11(b)''.
            (3) Section 852(b)(1) of such Code is amended by striking 
        the last sentence.
            (4) Section 7874(e)(1)(B) of such Code is amended by 
        striking ``the highest rate of tax specified in section 
        11(b)(1)'' and inserting ``the rate of tax in effect for the 
        taxable year under section 11(b)''.
    (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, 2016.
            (2) Withholding.--The amendments made by subsection (b)(2) 
        shall apply to distributions made after December 31, 2016.

SEC. 3. PROCEDURE IN CASE SECRETARY DETERMINES INCREASE IN CORPORATE 
              INCOME TAX.

    (a) In General.--In the case of any taxable years beginning during 
a calendar year (``current taxable years'') for which the rate of tax 
determined by the Secretary of the Treasury under section 11(b)(2) of 
the Internal Revenue Code of 1986 is higher than the rate of tax for 
taxable years beginning during the preceding calendar year (``preceding 
taxable years'')--
            (1) if not later than 60 days after the date of any such 
        determination Congress enacts into law a joint resolution 
        approving such higher rate of tax, then the rate of tax for the 
        current taxable years shall be the rate of tax so determined by 
        the Secretary, or
            (2) if after the expiration of such 60-day period no such 
        joint resolution has been enacted, then the rate of tax for the 
        current taxable years shall be the rate of tax that was in 
        effect for such preceding taxable years.
    (b) Content of Joint Resolution.--The joint resolution considered 
under this section shall meet the following requirements:
            (1) Such resolution shall not have a preamble.
            (2) The title of such resolution shall be as follows: 
        ``Joint resolution relating to the approval of an increased 
        rate of corporate income tax determined under section 11(b)(2) 
        of the Internal Revenue Code of 1986, as submitted under 
        section 3 of the Corporate Rate Equality and Trade Empowerment 
        Jobs Act of 2016.''.
            (3) The only matter after the resolving clause shall be as 
        follows: ``That Congress approves of the increased rate of 
        corporate income tax determined under section 11(b)(2) of the 
        Internal Revenue Code of 1986 for taxable years beginning 
        during the next 5 calendar years.''.
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