[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2291 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 2291
To amend the Internal Revenue Code of 1986 to make permanent the
individual tax rates in effect for taxable years 2018 through 2025.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 10, 2018
Mr. Cruz 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 make permanent the
individual tax rates in effect for taxable years 2018 through 2025.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PERMANENT MODIFICATION OF INDIVIDUAL RATE BRACKETS.
(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--The table contained in subsection (a) of section 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``If taxable income is: The tax is:
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Not over $19,050..................... 10% of taxable income.
Over $19,050 but not over $77,400.... $1,905, plus 12% of the excess
over $19,050.
Over $77,400 but not over $165,000... $8,907, plus 22% of the excess
over $77,400.
Over $165,000 but not over $315,000.. $28,179, plus 24% of the excess
over $165,000.
Over $315,000 but not over $400,000.. $64,179, plus 32% of the excess
over $315,000.
Over $400,000 but not over $600,000.. $91,379, plus 35% of the excess
over $400,000.
Over $600,000........................ $161,379, plus 37% of the excess
over $600,000.''.
(b) Heads of Households.--The table contained in subsection (b) of
section 1 of the Internal Revenue Code of 1986 is amended to read as
follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $13,600..................... 10% of taxable income.
Over $13,600 but not over $51,800.... $1,360, plus 12% of the excess
over $13,600.
Over $51,800 but not over $82,500.... $5,944, plus 22% of the excess
over $51,800.
Over $82,500 but not over $157,500... $12,698, plus 24% of the excess
over $82,500.
Over $157,500 but not over $200,000.. $30,698, plus 32% of the excess
over $157,500.
Over $200,000 but not over $500,000.. $44,298, plus 35% of the excess
over $200,000.
Over $500,000........................ $149,298, plus 37% of the excess
over $500,000.''.
(c) Unmarried Individuals Other Than Surviving Spouses and Heads of
Households.--The table contained in subsection (c) of section 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``If taxable income is: The tax is:
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Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $500,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $500,000........................ $150,689.50, plus 37% of the
excess over $500,000.''.
(d) Married Individuals Filing Separate Returns.--The table
contained in subsection (d) of section 1 of the Internal Revenue Code
of 1986 is amended to read as follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $300,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $300,000........................ $80,689.50, plus 37% of the
excess over $300,000.''.
(e) Estates and Trusts.--The table contained in subsection (e) of
section 1 of the Internal Revenue Code of 1986 is amended to read as
follows:
``If taxable income is: The tax is:
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Not over $2,550...................... 10% of taxable income.
Over $2,550 but not over $9,150...... $255, plus 24% of the excess over
$2,550.
Over $9,150 but not over $12,500..... $1,839, plus 35% of the excess
over $9,150.
Over $12,500......................... $3,011.50, plus 37% of the excess
over $12,500.''.
(f) Adjustment for Inflation.--Subsection (f) of section 1 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``1993'' in paragraph (1) and inserting
``2018'';
(2) by striking ``determined--'' and all that follows in
paragraph (2)(A) and inserting ``determined by substituting
`2017' for `2016' in paragraph (3)(A)(ii),'';
(3) by striking ``a married individual filing a separate
return'' in paragraph (7)(B) and inserting ``any unmarried
individual other than a surviving spouse or head of
household'';
(4) by striking ``married individuals filing separately''
in the heading of subparagraph (B) of paragraph (7) and
inserting ``certain unmarried individuals''; and
(5) by striking paragraph (8).
(g) Special Rules for Certain Children With Unearned Income.--
Subsection (g) of section 1 of the Internal Revenue Code of 1986 is
amended--
(1) by striking paragraphs (1), (3), and (5);
(2) by redesignating paragraphs (4), (6), and (7) as
paragraphs (5), (7), and (8), respectively;
(3) by redesignating paragraph (2) as paragraph (6) and by
moving such paragraph to the position between paragraphs (5)
and (7) (as so redesignated);
(4) by inserting before paragraph (5) (as so redesignated)
the following new paragraphs:
``(1) In general.--In the case of a child to whom this
subsection applies for the taxable year, the amount of tax
imposed by this section on such child shall be determined as
provided in paragraphs (2) and (3).
``(2) Modifications to applicable rate brackets.--The
income tax table otherwise applicable under this section to the
child shall be applied with the following modifications:
``(A) 24-percent bracket.--The maximum taxable
income which is taxed at a rate below 24 percent shall
not be more than the sum of--
``(i) the earned taxable income of such
child, plus
``(ii) the minimum taxable income for the
24-percent bracket in the table under
subsection (e) (as adjusted under subsection
(f)) for the taxable year.
``(B) 35-percent bracket.--The maximum taxable
income which is taxed at a rate below 35 percent shall
not be more than the sum of--
``(i) the earned taxable income of such
child, plus
``(ii) the minimum taxable income for the
35-percent bracket in the table under
subsection (e) (as adjusted under subsection
(f)) for the taxable year.
``(C) 37-percent bracket.--The maximum taxable
income which is taxed at a rate below 37 percent shall
not be more than the sum of--
``(i) the earned taxable income of such
child, plus
``(ii) the minimum taxable income for the
37-percent bracket in the table under
subsection (e) (as adjusted under subsection
(f)) for the taxable year.
``(3) Coordination with capital gains rates.--For purposes
of applying subsection (h)--
``(A) the maximum zero rate amount shall not be
more than the sum of--
``(i) the earned taxable income of such
child, plus
``(ii) the amount in effect under
subsection (h)(12)(A)(iv) for the taxable year,
and
``(B) the maximum 15-percent rate amount shall not
be more than the sum of--
``(i) the earned taxable income of such
child, plus
``(ii) the amount in effect under
subsection (h)(12)(B)(iv) for the taxable year.
``(4) Earned taxable income.--For purposes of this
subsection, the term `earned taxable income' means, with
respect to any child for any taxable year, the taxable income
of such child reduced (but not below zero) by the net unearned
income of such child.''; and
(5) by striking ``paragraph (4)(A)(ii)(I)'' each place it
appears in subparagraphs (A)(ii), (B)(i), and (B)(ii)(II) of
paragraph (8) (as so redesignated) and inserting ``paragraph
(5)(A)(ii)(I)''.
(h) Capital Gains Brackets.--Subsection (h) of section 1 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``which would (without regard to this
paragraph) be taxed at a rate below 25 percent'' in paragraph
(1)(B)(i) and inserting ``below the maximum zero rate amount'';
(2) by striking ``which would (without regard to this
paragraph) be taxed at a rate below 39.6 percent'' in paragraph
(1)(C)(ii)(I) and inserting ``below the maximum 15-percent rate
amount''; and
(3) by adding at the end the following new paragraph:
``(12) Maximum amounts defined.--For purposes of this
subsection--
``(A) Maximum zero rate amount.--The maximum zero
rate amount shall be--
``(i) in the case of a joint return or
surviving spouse, $77,200,
``(ii) in the case of an individual who is
a head of household (as defined in section
2(b)), $51,700,
``(iii) in the case of any other individual
(other than an estate or trust), an amount
equal to \1/2\ of the amount in effect for the
taxable year under clause (i), and
``(iv) in the case of an estate or trust,
$2,600.
``(B) Maximum 15-percent rate amount.--The maximum
15-percent rate amount shall be--
``(i) in the case of a joint return or
surviving spouse, $479,000 (\1/2\ such amount
in the case of a married individual filing a
separate return),
``(ii) in the case of an individual who is
the head of a household (as defined in section
2(b)), $452,400,
``(iii) in the case of any other individual
(other than an estate or trust), $425,800, and
``(iv) in the case of an estate or trust,
$12,700.
``(C) Inflation adjustment.--In the case of any
taxable year beginning after 2018, each of the dollar
amounts in subparagraphs (A) and (B) 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 2017'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase under this subparagraph is not a
multiple of $50, such increase shall be rounded to the
next lowest multiple of $50.''.
(i) Conforming Amendments.--
(1) Section 1 of the Internal Revenue Code of 1986 is
amended by striking subsections (i) and (j).
(2) Section 3402(q)(1) of such Code is amended by striking
``third lowest'' and inserting ``fourth lowest''.
(j) Section 15 Not To Apply.--Section 15 of the Internal Revenue
Code of 1986 shall not apply to any change in a rate of tax by reason
of this section.
(k) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
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