Jump Start America Act of 2017

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Jump Start America 
Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--SIMPLIFIED INDIVIDUAL INCOME TAX RATES

Sec. 101. Simplified individual income tax rates.
                TITLE II--20-PERCENT CORPORATE TAX RATE

Sec. 201. 20-percent corporate tax rate.
            TITLE III--15-PERCENT MAXIMUM CAPITAL GAINS RATE

Sec. 301. 15-percent maximum capital gains rate.
  TITLE IV--MODIFICATION AND PERMANENT EXTENSION OF THE INCENTIVES TO 
             REINVEST FOREIGN EARNINGS IN THE UNITED STATES

Sec. 401. Modification and permanent extension of the incentives to 
                            reinvest foreign earnings in the United 
                            States.
TITLE V--BONUS DEPRECIATION INCREASED TO 100 PERCENT AND MADE PERMANENT

Sec. 501. Bonus depreciation increased to 100 percent and made 
                            permanent.
              TITLE VI--FICA AND SECA TAX RATE REDUCTIONS

Sec. 601. FICA tax rate reductions.
Sec. 602. SECA tax rate reductions.
               TITLE VII--REPEAL OF ESTATE AND GIFT TAXES

Sec. 701. Repeal of estate and gift taxes.

            TITLE I--SIMPLIFIED INDIVIDUAL INCOME TAX RATES

SEC. 101. SIMPLIFIED INDIVIDUAL INCOME TAX RATES.

    (a) In General.--Section 1(i) of the Internal Revenue Code of 1986 
is amended by striking paragraphs (2) and (3), by redesignating 
paragraph (4) as paragraph (3), and by inserting after paragraph (1) 
the following new paragraph:
            ``(2) 20- and 30-percent rate brackets.--
                    ``(A) In general.--In the case of taxable years 
                beginning after December 31, 2015, the rate of tax 
                under subsections (a), (b), (c), and (d) on taxable 
                income which would (without regard to this paragraph) 
                be taxed at a rate over 15 percent shall be--
                            ``(i) 20 percent on taxable income not over 
                        $1,000,000, and
                            ``(ii) 30 percent on taxable income over 
                        $1,000,000.
                    ``(B) Inflation adjustment.--In prescribing the 
                tables under subsection (f) which apply with respect to 
                taxable years beginning after 2016, the $1,000,000 
                amount in subparagraph (A) 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 2015' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                If any adjustment under the preceding sentence is not a 
                multiple of $100, such amount shall be rounded to the 
                next lowest multiple of $100.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

                TITLE II--20-PERCENT CORPORATE TAX RATE

SEC. 201. 20-PERCENT CORPORATE TAX RATE.

    (a) In General.--Subsection (b) of section 11 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(b) Amount of Tax.--The amount of the tax imposed by subsection 
(a) shall be 20 percent of taxable income.''.
    (b) Conforming Amendments.--
            (1) Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) of 
        such Code are each amended by striking ``section 11(b)(1)'' and 
        inserting ``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 ``section 11(b)(1)'' and inserting ``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 ``section 11(b)(1)'' and inserting ``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, 2017.
            (2) Withholding.--The amendments made by subsection (b)(2) 
        shall apply to distributions made after December 31, 2017.

            TITLE III--15-PERCENT MAXIMUM CAPITAL GAINS RATE

SEC. 301. 15-PERCENT MAXIMUM CAPITAL GAINS RATE.

    (a) In General.--Section 1(h)(1) of the Internal Revenue Code of 
1986 is amended by striking subparagraphs (C) and (D), by redesignating 
subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively, 
and by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) 15 percent of the adjusted net capital gain 
                (or, if less, taxable income) in excess of the amount 
                on which a tax is determined under subparagraph (B).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

  TITLE IV--MODIFICATION AND PERMANENT EXTENSION OF THE INCENTIVES TO 
             REINVEST FOREIGN EARNINGS IN THE UNITED STATES

SEC. 401. MODIFICATION AND PERMANENT EXTENSION OF THE INCENTIVES TO 
              REINVEST FOREIGN EARNINGS IN THE UNITED STATES.

    (a) Repatriation Subject to 5-Percent Tax Rate.--Section 965(a)(1) 
of the Internal Revenue Code of 1986 is amended by striking ``85 
percent'' and inserting ``85.7 percent''.
    (b) Permanent Extension To Elect Repatriation.--Section 965(f) of 
such Code is amended to read as follows:
    ``(f) Election.--The taxpayer may elect to apply this section to 
any taxable year only if made on or before the due date (including 
extensions) for filing the return of tax for such taxable year.''.
    (c) Repatriation Includes Current and Accumulated Foreign 
Earnings.--
            (1) In general.--Section 965(b)(1) of such Code is amended 
        to read as follows:
            ``(1) In general.--The amount of dividends taken into 
        account under subsection (a) shall not exceed the sum of the 
        current and accumulated earnings and profits described in 
        section 959(c)(3) for the year a deduction is claimed under 
        subsection (a), without diminution by reason of any 
        distributions made during the election year, for all controlled 
        foreign corporations of the United States shareholder.''.
            (2) Conforming amendments.--
                    (A) Section 965(b) of such Code is amended by 
                striking paragraph (2) and by redesignating paragraphs 
                (3) and (4) as paragraphs (2) and (3), respectively.
                    (B) Section 965(c) of such Code is amended by 
                striking paragraphs (1) and (2) and by redesignating 
                paragraphs (3), (4), and (5) as paragraphs (1), (2), 
                and (3), respectively.
                    (C) Section 965(c)(3) of such Code, as redesignated 
                by subparagraph (B), is amended to read as follows:
            ``(3) Controlled groups.--All United States shareholders 
        which are members of an affiliated group filing a consolidated 
        return under section 1501 shall be treated as one United States 
        shareholder.''.
    (d) Clerical Amendments.--
            (1) The heading for section 965 of such Code is amended by 
        striking ``temporary''.
            (2) The table of sections for subpart F of part III of 
        subchapter N of chapter 1 of such Code is amended by striking 
        ``Temporary dividends'' and inserting ``Dividends''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

TITLE V--BONUS DEPRECIATION INCREASED TO 100 PERCENT AND MADE PERMANENT

SEC. 501. BONUS DEPRECIATION INCREASED TO 100 PERCENT AND MADE 
              PERMANENT.

    (a) Increase.--Section 168(k)(1)(A) of the Internal Revenue Code of 
1986 is amended by striking ``50 percent'' and inserting ``100 
percent''.
    (b) Made Permanent.--Section 168(k)(2) of the Internal Revenue Code 
of 1986 is amended to read as follows:
            ``(2) Qualified property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified property' 
                means property--
                            ``(i)(I) to which this section applies 
                        which has a recovery period of 20 years or 
                        less,
                            ``(II) which is computer software (as 
                        defined in section 167(f)(1)(B)) for which a 
                        deduction is allowable under section 167(a) 
                        without regard to this subsection,
                            ``(III) which is water utility property, or
                            ``(IV) which is qualified leasehold 
                        improvement property, and
                            ``(ii) the original use of which commences 
                        with the taxpayer.
                    ``(B) Exception for alternative depreciation 
                property.--The term `qualified property' shall not 
                include any property to which the alternative 
                depreciation system under subsection (g) applies, 
                determined--
                            ``(i) without regard to paragraph (7) of 
                        subsection (g) (relating to election to have 
                        system apply), and
                            ``(ii) after application of section 280F(b) 
                        (relating to listed property with limited 
                        business use).
                    ``(C) Special rules.--
                            ``(i) Sale-leasebacks.--For purposes of 
                        clause (ii) and subparagraph (A)(ii), if 
                        property is--
                                    ``(I) originally placed in service 
                                by a person, and
                                    ``(II) sold and leased back by such 
                                person within 3 months after the date 
                                such property was originally placed in 
                                service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date on 
                        which such property is used under the leaseback 
                        referred to in subclause (II).
                            ``(ii) Syndication.--For purposes of 
                        subparagraph (A)(ii), if--
                                    ``(I) property is originally placed 
                                in service by the lessor of such 
                                property,
                                    ``(II) such property is sold by 
                                such lessor or any subsequent purchaser 
                                within 3 months after the date such 
                                property was originally placed in 
                                service (or, in the case of multiple 
                                units of property subject to the same 
                                lease, within 3 months after the date 
                                the final unit is placed in service, so 
                                long as the period between the time the 
                                first unit is placed in service and the 
                                time the last unit is placed in service 
                                does not exceed 12 months), and
                                    ``(III) the user of such property 
                                after the last sale during such 3-month 
                                period remains the same as when such 
                                property was originally placed in 
                                service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date of 
                        such last sale.
                    ``(D) Coordination with section 280f.--For purposes 
                of section 280F--
                            ``(i) Automobiles.--In the case of a 
                        passenger automobile (as defined in section 
                        280F(d)(5)) which is qualified property, the 
                        Secretary shall increase the limitation under 
                        section 280F(a)(1)(A)(i) by $8,000.
                            ``(ii) Listed property.--The deduction 
                        allowable under paragraph (1) shall be taken 
                        into account in computing any recapture amount 
                        under section 280F(b)(2).
                            ``(iii) Inflation adjustment.--In the case 
                        of any taxable year beginning in a calendar 
                        year after 2018, the $8,000 amount in clause 
                        (i) shall be increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the automobile price 
                                inflation adjustment determined under 
                                section 280F(d)(7)(B)(i) for the 
                                calendar year in which such taxable 
                                year begins by substituting `2017' for 
                                `1987' in subclause (II) thereof.
                        If any increase under the preceding sentence is 
                        not a multiple of $100, such increase shall be 
                        rounded to the nearest multiple of $100.
                    ``(E) Deduction allowed in computing minimum tax.--
                For purposes of determining alternative minimum taxable 
                income under section 55, the deduction under section 
                167 for qualified property shall be determined without 
                regard to any adjustment under section 56.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2017.

              TITLE VI--FICA AND SECA TAX RATE REDUCTIONS

SEC. 601. FICA TAX RATE REDUCTIONS.

    (a) Old-Age, Survivors, and Disability Insurance.--Sections 3101(a) 
and 3111(a) of the Internal Revenue Code of 1986 are each amended by 
striking ``6.2 percent'' and inserting ``3.1 percent''.
    (b) Hospital Insurance.--
            (1) Employees.--Section 3101(b) of such Code is amended--
                    (A) by striking ``1.45 percent'' in paragraph (1) 
                and inserting ``0.725 percent'', and
                    (B) by striking ``0.9 percent'' in paragraph (2) 
                and inserting ``0.45 percent''.
            (2) Employers.--Section 3111(b) of such Code is amended by 
        striking ``1.45 percent'' and inserting ``0.725 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply remuneration paid after December 31, 2017.

SEC. 602. SECA TAX RATE REDUCTIONS.

    (a) Old-Age, Survivors, and Disability Insurance.--Section 1401(a) 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking all that follows ``for such taxable year'' 
        and inserting a period, and
            (2) by striking ``the following percent'' and inserting 
        ``6.2 percent''.
    (b) Hospital Insurance.--Section 1401(b) of such Code is amended--
            (1) by striking all that follows ``for such taxable year'' 
        in paragraph (1) and inserting a period,
            (2) by striking ``the following percent'' in paragraph (1) 
        and inserting ``1.45 percent'', and
            (3) by striking ``0.9 percent'' in paragraph (2)(A) and 
        inserting ``0.45''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to remuneration received after December 31, 2017.

               TITLE VII--REPEAL OF ESTATE AND GIFT TAXES

SEC. 701. REPEAL OF ESTATE AND GIFT TAXES.

    (a) In General.--Subtitle B of the Internal Revenue Code of 1986 
(relating to estate, gift, and generation-skipping taxes) is hereby 
repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to estates of decedents dying, gifts made, and generation-skipping 
transfers made after the date of the enactment of this Act.

Summary: Jump Start America Act of 2017 This bill amends the Internal Revenue Code, with respect to several corporate and individual income tax policies, to: revise individual income tax rates to establish a 20 rate on taxable income of $1 million or less and a 30 rate on taxable income over $1 million, with an adjustment for inflation after 2016. Revise the income tax rates on corporations to impose a single 20 rate on corporate taxable income. Modify the formula for calculating the tax on the net capital gains of individual taxpayers to provide for a maximum 15 rate on the adjusted net capital gain of such taxpayers. Reduce the tax rate on current and accumulated foreign earnings of US corporations reinvested in the United States and make the lower rate permanent. Increase the additional depreciation allowance from 50 to 100 of the adjusted basis of qualifying business property and to make such increased allowance permanent. Reduce Social Security and Medicare payroll taxes for employers, employees, and the self-employed, and repeal the federal estate, gift, and generation-skipping transfer taxes.