A bill to amend the Internal Revenue Code of 1986 to reduce tax rates across the board.

Summary: This bill amends the Internal Revenue Code to reduce the individual and corporate income tax rates by specified amounts. 

SECTION 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.