Tax Cuts for All Americans Act

Summary: Tax Cuts for All Americans Act - Amends the Internal Revenue Code to reduce individual income tax rates by ten percent.

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Tax Cuts for All 
Americans Act''.
    (b) Section 15 Not To Apply.--No amendment made by section 2 shall 
be treated as a change in a rate of tax for purposes of section 15 of 
the Internal Revenue Code of 1986.

SEC. 2. 10 PERCENT REDUCTION IN INDIVIDUAL INCOME TAX RATES.

    (a) General Rule.--Section 1 of the Internal Revenue Code of 1986 
(relating to tax imposed) is amended by striking subsections (a) 
through (e) and inserting the following:
    ``(a) Married Individuals Filing Joint Returns and Surviving 
Spouses.--There is hereby imposed on the taxable income of--
            ``(1) every married individual (as defined in section 7703) 
        who makes a single return jointly with his spouse under section 
        6013, and
            ``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $43,050...............
                                        13.5% of taxable income.
    Over $43,050 but not over 
        $104,050.
                                        $5,811.75, plus 25.2% of the 
                                                excess over $43,050.
    Over $104,050 but not over 
        $158,550.
                                        $21,183.75, plus 27.9% of the 
                                                excess over $104,050.
    Over $158,550 but not over 
        $283,150.
                                        $36,389.25, plus 32.4% of the 
                                                excess over $158,550.
    Over $283,150..................
                                        $76,759.65, plus 35.64% of the 
                                                excess over $283,150.
    ``(b) Heads of Households.--There is hereby imposed on the taxable 
income of every head of a household (as defined in section 2(b)) a tax 
determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $34,550...............
                                        13.5% of taxable income.
    Over $34,550 but not over 
        $89,150.
                                        $4,664.25, plus 25.2% of the 
                                                excess over $34,550.
    Over $89,150 but not over 
        $144,400.
                                        $18,423.45, plus 27.9% of the 
                                                excess over $89,150.
    Over $144,400 but not over 
        $283,150.
                                        $33,838.20, plus 32.4% of the 
                                                excess over $144,400.
    Over $283,150..................
                                        $78,793.20, plus 35.64% of the 
                                                excess over $283,150.
    ``(c) Unmarried Individuals (Other Than Surviving Spouses and Heads 
of Households).--There is hereby imposed on the taxable income of every 
individual (other than a surviving spouse as defined in section 2(a) or 
the head of a household as defined in section 2(b)) who is not a 
married individual (as defined in section 7703) a tax determined in 
accordance with the following table:

``If taxable income is:             The tax is:
    Not over $25,750...............
                                        13.5% of taxable income.
    Over $25,750 but not over 
        $62,450.
                                        $3,476.25, plus 25.2% of the 
                                                excess over $25,750.
    Over $62,450 but not over 
        $130,250.
                                        $12,724.65, plus 27.9% of the 
                                                excess over $62,450.
    Over $130,250 but not over 
        $283,150.
                                        $31,640.85, plus 32.4% of the 
                                                excess over $130,250.
    Over $283,150..................
                                        $81,180.45, plus 35.64% of the 
                                                excess over $283,150.
    ``(d) Married Individuals Filing Separate Returns.--There is hereby 
imposed on the taxable income of every married individual (as defined 
in section 7703) who does not make a single return jointly with his 
spouse under section 6013, a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $21,525...............
                                        13.5% of taxable income.
    Over $21,525 but not over 
        $52,025.
                                        $2,905.87, plus 25.2% of the 
                                                excess over $21,525.
    Over $52,025 but not over 
        $79,275.
                                        $10,591.87, plus 27.9% of the 
                                                excess over $52,025.
    Over $79,275 but not over 
        $141,575.
                                        $18,194.62, plus 32.4% of the 
                                                excess over $79,275.
    Over $141,575..................
                                        $38,379.82, plus 35.64% of the 
                                                excess over $141,575.
    ``(e) Estates and Trusts.--There is hereby imposed on the taxable 
income of--
            ``(1) every estate, and
            ``(2) every trust,
taxable under this subsection a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $1,750................
                                        13.5% of taxable income.
    Over $1,750 but not over $4,050
                                        $236.25, plus 25.2% of the 
                                                excess over $1,750.
    Over $4,050 but not over $6,200
                                        $815.85, plus 27.9% of the 
                                                excess over $4,050.
    Over $6,200 but not over $8,450
                                        $1,415.70, plus 32.4% of the 
                                                excess over $6,200.
    Over $8,450....................
                                        $2,144.70, plus 35.64% of the 
                                                excess over $8,450.''
    (b) Inflation Adjustment Conforming Amendments.--
            (1) Subsection (f) of section 1 of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking ``1993'' in paragraph (1) and 
                inserting ``1999'',
                    (B) by striking ``1992'' in paragraph (3)(B) and 
                inserting ``1998'', and
                    (C) by striking paragraph (7).
            (2) The following provisions of such Code are each amended 
        by striking ``1992'' and inserting ``1998'' each place it 
        appears:
                    (A) Section 25A(h).
                    (B) Section 32(j)(1)(B).
                    (C) Section 41(e)(5)(C).
                    (D) Section 59(j)(2)(B).
                    (E) Section 63(c)(4)(B).
                    (F) Section 68(b)(2)(B).
                    (G) Section 135(b)(2)(B)(ii).
                    (H) Section 151(d)(4).
                    (I) Section 220(g)(2).
                    (J) Section 221(g)(1)(B).
                    (K) Section 512(d)(2)(B).
                    (L) Section 513(h)(2)(C)(ii).
                    (M) Section 685(c)(3)(B).
                    (N) Section 877(a)(2).
                    (O) Section 911(b)(2)(D)(ii)(II).
                    (P) Section 2032A(a)(3)(B).
                    (Q) Section 2503(b)(2)(B).
                    (R) Section 2631(c)(1)(B).
                    (S) Section 4001(e)(1)(B).
                    (T) Section 4261(e)(4)(A)(ii).
                    (U) Section 6039F(d).
                    (V) Section 6323(i)(4)(B).
                    (W) Section 6601(j)(3)(B).
                    (X) Section 7430(c)(1).
            (3) Subclause (II) of section 42(h)(6)(G)(i) of such Code 
        is amended by striking ``1987'' and inserting ``1998''.
            (4) Subparagraph (B) of section 132(f)(6) of such Code is 
        amended by inserting before the period ``, determined by 
        substituting `calendar year 1992' for `calendar year 1998' in 
        subparagraph (B) thereof''.
    (c) Additional Conforming Amendments.--
            (1) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code 
        of 1986 is amended by striking ``15 percent'' and inserting 
        ``13.5 percent''.
            (2) Section 1(h) of such Code is amended--
                    (A) by striking ``28 percent'' both places it 
                appears in paragraphs (1)(A)(ii)(I) and (1)(B)(i) and 
                inserting ``25.2 percent'', and
                    (B) by striking paragraph (13).
            (3) Section 531 of such Code is amended by striking ``39.6 
        percent'' and inserting ``35.64 percent''.
            (4) Section 541 of such Code is amended by striking ``39.6 
        percent'' and inserting ``35.64 percent''.
            (5) Section 3402(p)(1)(B) of such Code is amended by 
        striking ``7, 15, 28, or 31 percent'' and inserting ``7, 13.5, 
        25.2 or 27.9 percent''.
            (6) Section 3402(p)(2) of such Code is amended by striking 
        ``15 percent'' and inserting ``13.5 percent''.
            (7) Section 3402(q)(1) of such Code is amended by striking 
        ``28 percent'' and inserting ``25.2 percent''.
            (8) Section 3402(r)(3) of such Code is amended by striking 
        ``31 percent'' and inserting ``27.9 percent''.
            (9) Section 3406(a)(1) of such Code is amended by striking 
        ``31 percent'' and inserting ``27.9 percent''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 1998.
            (2) Amendments to withholding provisions.--The amendments 
        made by paragraphs (5), (6), (7), (8), and (9) of subsection 
        (c) shall apply to amounts paid after December 31, 1998.