I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Corporate Rate Equal5 ity and Trade Empowerment Jobs Act of 2016’’ or the 

6 ‘‘Create Jobs Act’’. 

7 SEC. 2. OECD RATE OF CORPORATE INCOME TAX. 

8 (a) IN GENERAL.—Section 11(b) of the Internal Rev9 enue Code of 1986 is amended to read as follows: 


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1 ‘‘(b) AMOUNT OF TAX.— 

2 ‘‘(1) IN GENERAL.—The amount of the tax im3 posed by subsection (a) shall be an amount equal to 

4 the applicable percentage of the taxable income. 

5 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

6 of this section— 

7 ‘‘(A) IN GENERAL.—Subject to section 3 of 

8 the Corporate Rate Equality and Trade Em9 powerment Jobs Act of 2016, the applicable 

10 percentage for taxable years beginning in any 

11 calendar year shall be the greater of— 

12 ‘‘(i) 10 percent, or 

13 ‘‘(ii) the percentage determined by the 

14 Secretary under subparagraph (B) for the 

15 taxable year. 

16 ‘‘(B) DETERMINATION BY SECRETARY.— 

17 Not later than November 1, 2016, and every 5 

18 years thereafter, the Secretary shall determine 

19 the percentage that is 5 percentage points less 

20 than the mean of the central government cor21 porate income tax rates most recently published 

22 as of November 1 of the preceding calendar 

23 year by the Organisation for Economic Co-oper24 ation and Development (hereinafter referred to 

25 as ‘OECD’) for OECD countries other than the 


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1 United States. The percentage determined 

2 under the preceding sentence shall apply to tax3 able years beginning in the subsequent calendar 

4 year and each of the 4 calendar years there5 after.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Paragraphs (2)(B) and (6)(A)(ii) of section 

8 860E(e) of such Code are each amended by striking 

9 ‘‘the highest rate of tax specified in section 

10 11(b)(1)’’ and inserting ‘‘the rate of tax in effect for 

11 the taxable year under section 11(b)’’. 

12 (2)(A) Section 1445(e)(1) of such Code is 

13 amended— 

14 (i) by striking ‘‘35 percent’’ and in15 serting ‘‘the rate of tax in effect for the 

16 taxable year under section 11(b)’’, and 

17 (ii) by striking ‘‘of the gain’’ and in18 serting ‘‘multiplied by the gain’’. 

19 (B) Section 1445(e)(2) of such Code is 

20 amended by striking ‘‘35 percent of the 

21 amount’’ and inserting ‘‘the rate of tax in effect 

22 for the taxable year under section 11(b) multi23 plied by the amount’’. 

24 (C) Section 1445(e)(6) of such Code is 

25 amended— 


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1 (i) by striking ‘‘35 percent’’ and in2 serting ‘‘the rate of tax in effect for the 

3 taxable year under section 11(b)’’, and 

4 (ii) by striking ‘‘of the amount’’ and 

5 inserting ‘‘multiplied by the amount’’. 

6 (D) Section 1446(b)(2)(B) of such Code is 

7 amended by striking ‘‘the highest rate of tax 

8 specified in section 11(b)(1)’’ and inserting 

9 ‘‘the rate of tax in effect for the taxable year 

10 under section 11(b)’’. 

11 (3) Section 852(b)(1) of such Code is amended 

12 by striking the last sentence. 

13 (4) Section 7874(e)(1)(B) of such Code is 

14 amended by striking ‘‘the highest rate of tax speci15 fied in section 11(b)(1)’’ and inserting ‘‘the rate of 

16 tax in effect for the taxable year under section 

17 11(b)’’. 

18 (c) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this subsection, the amendments made by 

21 this section shall apply to taxable years beginning 

22 after December 31, 2016. 

23 (2) WITHHOLDING.—The amendments made by 

24 subsection (b)(2) shall apply to distributions made 

25 after December 31, 2016. 


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1 SEC. 3. PROCEDURE IN CASE SECRETARY DETERMINES IN2 CREASE IN CORPORATE INCOME TAX. 

3 (a) IN GENERAL.—In the case of any taxable years 

4 beginning during a calendar year (‘‘current taxable 

5 years’’) for which the rate of tax determined by the Sec6 retary of the Treasury under section 11(b)(2) of the Inter7 nal Revenue Code of 1986 is higher than the rate of tax 

8 for taxable years beginning during the preceding calendar 

9 year (‘‘preceding taxable years’’)— 

10 (1) if not later than 60 days after the date of 

11 any such determination Congress enacts into law a 

12 joint resolution approving such higher rate of tax, 

13 then the rate of tax for the current taxable years 

14 shall be the rate of tax so determined by the Sec15 retary, or 

16 (2) if after the expiration of such 60-day period 

17 no such joint resolution has been enacted, then the 

18 rate of tax for the current taxable years shall be the 

19 rate of tax that was in effect for such preceding tax20 able years. 

21 (b) CONTENT OF JOINT RESOLUTION.—The joint 

22 resolution considered under this section shall meet the fol23 lowing requirements: 

24 (1) Such resolution shall not have a preamble. 

25 (2) The title of such resolution shall be as fol26 lows: ‘‘Joint resolution relating to the approval of an 


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1 increased rate of corporate income tax determined 

2 under section 11(b)(2) of the Internal Revenue Code 

3 of 1986, as submitted under section 3 of the Cor4 porate Rate Equality and Trade Empowerment Jobs 

5 Act of 2016.’’. 

6 (3) The only matter after the resolving clause 

7 shall be as follows: ‘‘That Congress approves of the 

8 increased rate of corporate income tax determined 

9 under section 11(b)(2) of the Internal Revenue Code 

10 of 1986 for taxable years beginning during the next 

11 5 calendar years.’’. 

Æ 


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