II 

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. 

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

3 SECTION 1. PERMANENT MODIFICATION OF INDIVIDUAL 

4 RATE BRACKETS. 

5 (a) MARRIED INDIVIDUALS FILING JOINT RETURNS

6 AND SURVIVING SPOUSES.—The table contained in sub7 section (a) of section 1 of the Internal Revenue Code of 

8 1986 is amended to read as follows: 


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‘‘If taxable income is: The tax is: 

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.’’. 

1 (b) HEADS OF HOUSEHOLDS.—The table contained 

2 in subsection (b) of section 1 of the Internal Revenue Code 

3 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.’’. 

4 (c) UNMARRIED INDIVIDUALS OTHER THAN SUR5 VIVING SPOUSES AND HEADS OF HOUSEHOLDS.—The 

6 table contained in subsection (c) of section 1 of the Inter7 nal 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. 


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‘‘If taxable income is: The tax is: 

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.’’. 

1 (d) MARRIED INDIVIDUALS FILING SEPARATE RE2 TURNS.—The table contained in subsection (d) of section 

3 1 of the Internal Revenue Code of 1986 is amended to 

4 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.’’. 

5 (e) ESTATES AND TRUSTS.—The table contained in 

6 subsection (e) of section 1 of the Internal Revenue Code 

7 of 1986 is amended to read as follows: 

‘‘If taxable income is: The tax is: 

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.’’. 


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1 (f) ADJUSTMENT FOR INFLATION.—Subsection (f) of 

2 section 1 of the Internal Revenue Code of 1986 is amend3 ed— 

4 (1) by striking ‘‘1993’’ in paragraph (1) and in5 serting ‘‘2018’’; 

6 (2) by striking ‘‘determined—’’ and all that fol7 lows in paragraph (2)(A) and inserting ‘‘determined 

8 by substituting ‘2017’ for ‘2016’ in paragraph 

9 (3)(A)(ii),’’; 

10 (3) by striking ‘‘a married individual filing a 

11 separate return’’ in paragraph (7)(B) and inserting 

12 ‘‘any unmarried individual other than a surviving 

13 spouse or head of household’’; 

14 (4) by striking ‘‘MARRIED INDIVIDUALS FILING

15 SEPARATELY’’ in the heading of subparagraph (B) of 

16 paragraph (7) and inserting ‘‘CERTAIN UNMARRIED

17 INDIVIDUALS’’; and 

18 (5) by striking paragraph (8). 

19 (g) SPECIAL RULES FOR CERTAIN CHILDREN WITH

20 UNEARNED INCOME.—Subsection (g) of section 1 of the 

21 Internal Revenue Code of 1986 is amended— 

22 (1) by striking paragraphs (1), (3), and (5); 

23 (2) by redesignating paragraphs (4), (6), and 

24 (7) as paragraphs (5), (7), and (8), respectively; 


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1 (3) by redesignating paragraph (2) as para2 graph (6) and by moving such paragraph to the po3 sition between paragraphs (5) and (7) (as so redes4 ignated); 

5 (4) by inserting before paragraph (5) (as so re6 designated) the following new paragraphs: 

7 ‘‘(1) IN GENERAL.—In the case of a child to 

8 whom this subsection applies for the taxable year, 

9 the amount of tax imposed by this section on such 

10 child shall be determined as provided in paragraphs 

11 (2) and (3). 

12 ‘‘(2) MODIFICATIONS TO APPLICABLE RATE

13 BRACKETS.—The income tax table otherwise applica14 ble under this section to the child shall be applied 

15 with the following modifications: 

16 ‘‘(A) 24-PERCENT BRACKET.—The max17 imum taxable income which is taxed at a rate 

18 below 24 percent shall not be more than the 

19 sum of— 

20 ‘‘(i) the earned taxable income of such 

21 child, plus 

22 ‘‘(ii) the minimum taxable income for 

23 the 24-percent bracket in the table under 

24 subsection (e) (as adjusted under sub25 section (f)) for the taxable year. 


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1 ‘‘(B) 35-PERCENT BRACKET.—The max2 imum taxable income which is taxed at a rate 

3 below 35 percent shall not be more than the 

4 sum of— 

5 ‘‘(i) the earned taxable income of such 

6 child, plus 

7 ‘‘(ii) the minimum taxable income for 

8 the 35-percent bracket in the table under 

9 subsection (e) (as adjusted under sub10 section (f)) for the taxable year. 

11 ‘‘(C) 37-PERCENT BRACKET.—The max12 imum taxable income which is taxed at a rate 

13 below 37 percent shall not be more than the 

14 sum of— 

15 ‘‘(i) the earned taxable income of such 

16 child, plus 

17 ‘‘(ii) the minimum taxable income for 

18 the 37-percent bracket in the table under 

19 subsection (e) (as adjusted under sub20 section (f)) for the taxable year. 

21 ‘‘(3) COORDINATION WITH CAPITAL GAINS

22 RATES.—For purposes of applying subsection (h)— 

23 ‘‘(A) the maximum zero rate amount shall 

24 not be more than the sum of— 


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1 ‘‘(i) the earned taxable income of such 

2 child, plus 

3 ‘‘(ii) the amount in effect under sub4 section (h)(12)(A)(iv) for the taxable year, 

5 and 

6 ‘‘(B) the maximum 15-percent rate 

7 amount shall not be more than the sum of— 

8 ‘‘(i) the earned taxable income of such 

9 child, plus 

10 ‘‘(ii) the amount in effect under sub11 section (h)(12)(B)(iv) for the taxable year. 

12 ‘‘(4) EARNED TAXABLE INCOME.—For purposes 

13 of this subsection, the term ‘earned taxable income’ 

14 means, with respect to any child for any taxable 

15 year, the taxable income of such child reduced (but 

16 not below zero) by the net unearned income of such 

17 child.’’; and 

18 (5) by striking ‘‘paragraph (4)(A)(ii)(I)’’ each 

19 place it appears in subparagraphs (A)(ii), (B)(i), 

20 and (B)(ii)(II) of paragraph (8) (as so redesignated) 

21 and inserting ‘‘paragraph (5)(A)(ii)(I)’’. 

22 (h) CAPITAL GAINS BRACKETS.—Subsection (h) of 

23 section 1 of the Internal Revenue Code of 1986 is amend24 ed— 


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1 (1) by striking ‘‘which would (without regard to 

2 this paragraph) be taxed at a rate below 25 percent’’ 

3 in paragraph (1)(B)(i) and inserting ‘‘below the 

4 maximum zero rate amount’’; 

5 (2) by striking ‘‘which would (without regard to 

6 this paragraph) be taxed at a rate below 39.6 per7 cent’’ in paragraph (1)(C)(ii)(I) and inserting 

8 ‘‘below the maximum 15-percent rate amount’’; and 

9 (3) by adding at the end the following new 

10 paragraph: 

11 ‘‘(12) MAXIMUM AMOUNTS DEFINED.—For pur12 poses of this subsection— 

13 ‘‘(A) MAXIMUM ZERO RATE AMOUNT.—The 

14 maximum zero rate amount shall be— 

15 ‘‘(i) in the case of a joint return or 

16 surviving spouse, $77,200, 

17 ‘‘(ii) in the case of an individual who 

18 is a head of household (as defined in sec19 tion 2(b)), $51,700, 

20 ‘‘(iii) in the case of any other indi21 vidual (other than an estate or trust), an 

amount equal to 1 22 ⁄2 of the amount in effect 

23 for the taxable year under clause (i), and 

24 ‘‘(iv) in the case of an estate or trust, 

25 $2,600. 


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1 ‘‘(B) MAXIMUM 15-PERCENT RATE

2 AMOUNT.—The maximum 15-percent rate 

3 amount shall be— 

4 ‘‘(i) in the case of a joint return or 

surviving spouse, $479,000 (1 5 ⁄2 such 

6 amount in the case of a married individual 

7 filing a separate return), 

8 ‘‘(ii) in the case of an individual who 

9 is the head of a household (as defined in 

10 section 2(b)), $452,400, 

11 ‘‘(iii) in the case of any other indi12 vidual (other than an estate or trust), 

13 $425,800, and 

14 ‘‘(iv) in the case of an estate or trust, 

15 $12,700. 

16 ‘‘(C) INFLATION ADJUSTMENT.—In the 

17 case of any taxable year beginning after 2018, 

18 each of the dollar amounts in subparagraphs 

19 (A) and (B) shall be increased by an amount 

20 equal to— 

21 ‘‘(i) such dollar amount, multiplied by 

22 ‘‘(ii) the cost-of-living adjustment de23 termined under subsection (f)(3) for the 

24 calendar year in which the taxable year be25 gins, determined by substituting ‘calendar 


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1 year 2017’ for ‘calendar year 2016’ in sub2 paragraph (A)(ii) thereof. 

3 If any increase under this subparagraph is not 

4 a multiple of $50, such increase shall be round5 ed to the next lowest multiple of $50.’’. 

6 (i) CONFORMING AMENDMENTS.— 

7 (1) Section 1 of the Internal Revenue Code of 

8 1986 is amended by striking subsections (i) and (j). 

9 (2) Section 3402(q)(1) of such Code is amend10 ed by striking ‘‘third lowest’’ and inserting ‘‘fourth 

11 lowest’’. 

12 (j) SECTION 15 NOT TO APPLY.—Section 15 of the 

13 Internal Revenue Code of 1986 shall not apply to any 

14 change in a rate of tax by reason of this section. 

15 (k) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2018. 

Æ 


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