I 

115TH CONGRESS 

1ST SESSION H. R. 2078 

To amend the Internal Revenue Code of 1986 to simplify individual income 

and corporate tax rates, to set a maximum on the capital gains rate, 

to make permanent the deduction for dividends received for repatriated 

foreign earnings, to reduce the rate of payroll and self-employment taxes, 

to make 100-percent bonus depreciation permanent, and to repeal the 

Federal estate and gift taxes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2017 

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 simplify 

individual income and corporate tax rates, to set a maximum on the capital gains rate, to make permanent 

the deduction for dividends received for repatriated foreign earnings, to reduce the rate of payroll and selfemployment taxes, to make 100-percent bonus depreciation permanent, and to repeal the Federal estate and 

gift taxes. 

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


sradovich on DSK3GMQ082PROD with BILLS
2 

•HR 2078 IH

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Jump Start America Act of 2017’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 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. 

6 TITLE I—SIMPLIFIED 

7 INDIVIDUAL INCOME TAX RATES 

8 SEC. 101. SIMPLIFIED INDIVIDUAL INCOME TAX RATES. 

9 (a) IN GENERAL.—Section 1(i) of the Internal Rev10 enue Code of 1986 is amended by striking paragraphs (2) 

11 and (3), by redesignating paragraph (4) as paragraph (3), 


sradovich on DSK3GMQ082PROD with BILLS
3 

•HR 2078 IH

1 and by inserting after paragraph (1) the following new 

2 paragraph: 

3 ‘‘(2) 20- AND 30-PERCENT RATE BRACKETS.— 

4 ‘‘(A) IN GENERAL.—In the case of taxable 

5 years beginning after December 31, 2015, the 

6 rate of tax under subsections (a), (b), (c), and 

7 (d) on taxable income which would (without re8 gard to this paragraph) be taxed at a rate over 

9 15 percent shall be— 

10 ‘‘(i) 20 percent on taxable income not 

11 over $1,000,000, and 

12 ‘‘(ii) 30 percent on taxable income 

13 over $1,000,000. 

14 ‘‘(B) INFLATION ADJUSTMENT.—In pre15 scribing the tables under subsection (f) which 

16 apply with respect to taxable years beginning 

17 after 2016, the $1,000,000 amount in subpara18 graph (A) shall be increased by an amount 

19 equal to— 

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

21 ‘‘(ii) the cost-of-living adjustment de22 termined under subsection (f)(3) for the 

23 calendar year in which the taxable year be24 gins determined by substituting ‘calendar 


sradovich on DSK3GMQ082PROD with BILLS
4 

•HR 2078 IH

1 year 2015’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 If any adjustment under the preceding sentence 

4 is not a multiple of $100, such amount shall be 

5 rounded to the next lowest multiple of $100.’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2017. 

9 TITLE II—20-PERCENT 

10 CORPORATE TAX RATE 

11 SEC. 201. 20-PERCENT CORPORATE TAX RATE. 

12 (a) IN GENERAL.—Subsection (b) of section 11 of the 

13 Internal Revenue Code of 1986 is amended to read as fol14 lows: 

15 ‘‘(b) AMOUNT OF TAX.—The amount of the tax im16 posed by subsection (a) shall be 20 percent of taxable in17 come.’’. 

18 (b) CONFORMING AMENDMENTS.— 

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

20 860E(e) of such Code are each amended by striking 

21 ‘‘section 11(b)(1)’’ and inserting ‘‘section 11(b)’’. 

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

23 amended— 


sradovich on DSK3GMQ082PROD with BILLS
5 

•HR 2078 IH

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 gain’’ and in5 serting ‘‘multiplied by the gain’’. 

6 (B) Section 1445(e)(2) of such Code is amend7 ed by striking ‘‘35 percent of the amount’’ and in8 serting ‘‘the rate of tax in effect for the taxable year 

9 under section 11(b) multiplied by the amount’’. 

10 (C) Section 1445(e)(6) of such Code is amend11 ed— 

12 (i) by striking ‘‘35 percent’’ and inserting 

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

14 under section 11(b)’’, and 

15 (ii) by striking ‘‘of the amount’’ and in16 serting ‘‘multiplied by the amount’’. 

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

18 amended by striking ‘‘section 11(b)(1)’’ and insert19 ing ‘‘section 11(b)’’. 

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

21 by striking the last sentence. 

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

23 amended by striking ‘‘section 11(b)(1)’’ and insert24 ing ‘‘section 11(b)’’. 

25 (c) EFFECTIVE DATE.— 


sradovich on DSK3GMQ082PROD with BILLS
6 

•HR 2078 IH

1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to taxable years beginning 

4 after December 31, 2017. 

5 (2) WITHHOLDING.—The amendments made by 

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

7 after December 31, 2017. 

8 TITLE III—15-PERCENT 

9 MAXIMUM CAPITAL GAINS RATE 

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

11 (a) IN GENERAL.—Section 1(h)(1) of the Internal 

12 Revenue Code of 1986 is amended by striking subpara13 graphs (C) and (D), by redesignating subparagraphs (E) 

14 and (F) as subparagraphs (D) and (E), respectively, and 

15 by inserting after subparagraph (B) the following new 

16 subparagraph: 

17 ‘‘(C) 15 percent of the adjusted net capital 

18 gain (or, if less, taxable income) in excess of the 

19 amount on which a tax is determined under 

20 subparagraph (B).’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2017. 


sradovich on DSK3GMQ082PROD with BILLS
7 

•HR 2078 IH

1 TITLE IV—MODIFICATION AND 

2 PERMANENT EXTENSION OF 

3 THE INCENTIVES TO REIN4 VEST FOREIGN EARNINGS IN 

5 THE UNITED STATES 

6 SEC. 401. MODIFICATION AND PERMANENT EXTENSION OF 

7 THE INCENTIVES TO REINVEST FOREIGN 

8 EARNINGS IN THE UNITED STATES. 

9 (a) REPATRIATION SUBJECT TO 5-PERCENT TAX

10 RATE.—Section 965(a)(1) of the Internal Revenue Code 

11 of 1986 is amended by striking ‘‘85 percent’’ and inserting 

12 ‘‘85.7 percent’’. 

13 (b) PERMANENT EXTENSION TO ELECT REPATRI14 ATION.—Section 965(f) of such Code is amended to read 

15 as follows: 

16 ‘‘(f) ELECTION.—The taxpayer may elect to apply 

17 this section to any taxable year only if made on or before 

18 the due date (including extensions) for filing the return 

19 of tax for such taxable year.’’. 

20 (c) REPATRIATION INCLUDES CURRENT AND ACCU21 MULATED FOREIGN EARNINGS.— 

22 (1) IN GENERAL.—Section 965(b)(1) of such 

23 Code is amended to read as follows: 

24 ‘‘(1) IN GENERAL.—The amount of dividends 

25 taken into account under subsection (a) shall not exVerDate Sep 11 2014 19:58 Apr 24, 2017 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2078.IH H2078

sradovich on DSK3GMQ082PROD with BILLS
8 

•HR 2078 IH

1 ceed the sum of the current and accumulated earn2 ings and profits described in section 959(c)(3) for 

3 the year a deduction is claimed under subsection (a), 

4 without diminution by reason of any distributions 

5 made during the election year, for all controlled for6 eign corporations of the United States shareholder.’’. 

7 (2) CONFORMING AMENDMENTS.— 

8 (A) Section 965(b) of such Code is amend9 ed by striking paragraph (2) and by redesig10 nating paragraphs (3) and (4) as paragraphs 

11 (2) and (3), respectively. 

12 (B) Section 965(c) of such Code is amend13 ed by striking paragraphs (1) and (2) and by 

14 redesignating paragraphs (3), (4), and (5) as 

15 paragraphs (1), (2), and (3), respectively. 

16 (C) Section 965(c)(3) of such Code, as re17 designated by subparagraph (B), is amended to 

18 read as follows: 

19 ‘‘(3) CONTROLLED GROUPS.—All United States 

20 shareholders which are members of an affiliated 

21 group filing a consolidated return under section 

22 1501 shall be treated as one United States share23 holder.’’. 

24 (d) CLERICAL AMENDMENTS.— 


sradovich on DSK3GMQ082PROD with BILLS
9 

•HR 2078 IH

1 (1) The heading for section 965 of such Code 

2 is amended by striking ‘‘TEMPORARY’’. 

3 (2) The table of sections for subpart F of part 

4 III of subchapter N of chapter 1 of such Code is 

5 amended by striking ‘‘Temporary dividends’’ and in6 serting ‘‘Dividends’’. 

7 (e) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years ending after the 

9 date of the enactment of this Act. 

10 TITLE V—BONUS DEPRECIATION 

11 INCREASED TO 100 PERCENT 

12 AND MADE PERMANENT 

13 SEC. 501. BONUS DEPRECIATION INCREASED TO 100 PER14 CENT AND MADE PERMANENT. 

15 (a) INCREASE.—Section 168(k)(1)(A) of the Internal 

16 Revenue Code of 1986 is amended by striking ‘‘50 per17 cent’’ and inserting ‘‘100 percent’’. 

18 (b) MADE PERMANENT.—Section 168(k)(2) of the 

19 Internal Revenue Code of 1986 is amended to read as fol20 lows: 

21 ‘‘(2) QUALIFIED PROPERTY.—For purposes of 

22 this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘qualified 

24 property’ means property— 


sradovich on DSK3GMQ082PROD with BILLS
10 

•HR 2078 IH

1 ‘‘(i)(I) to which this section applies 

2 which has a recovery period of 20 years or 

3 less, 

4 ‘‘(II) which is computer software (as 

5 defined in section 167(f)(1)(B)) for which 

6 a deduction is allowable under section 

7 167(a) without regard to this subsection, 

8 ‘‘(III) which is water utility property, 

9 or 

10 ‘‘(IV) which is qualified leasehold im11 provement property, and 

12 ‘‘(ii) the original use of which com13 mences with the taxpayer. 

14 ‘‘(B) EXCEPTION FOR ALTERNATIVE DE15 PRECIATION PROPERTY.—The term ‘qualified 

16 property’ shall not include any property to 

17 which the alternative depreciation system under 

18 subsection (g) applies, determined— 

19 ‘‘(i) without regard to paragraph (7) 

20 of subsection (g) (relating to election to 

21 have system apply), and 

22 ‘‘(ii) after application of section 

23 280F(b) (relating to listed property with 

24 limited business use). 

25 ‘‘(C) SPECIAL RULES.— 


sradovich on DSK3GMQ082PROD with BILLS
11 

•HR 2078 IH

1 ‘‘(i) SALE-LEASEBACKS.—For pur2 poses of clause (ii) and subparagraph 

3 (A)(ii), if property is— 

4 ‘‘(I) originally placed in service 

5 by a person, and 

6 ‘‘(II) sold and leased back by 

7 such person within 3 months after the 

8 date such property was originally 

9 placed in service, 

10 such property shall be treated as originally 

11 placed in service not earlier than the date 

12 on which such property is used under the 

13 leaseback referred to in subclause (II). 

14 ‘‘(ii) SYNDICATION.—For purposes of 

15 subparagraph (A)(ii), if— 

16 ‘‘(I) property is originally placed 

17 in service by the lessor of such prop18 erty, 

19 ‘‘(II) such property is sold by 

20 such lessor or any subsequent pur21 chaser within 3 months after the date 

22 such property was originally placed in 

23 service (or, in the case of multiple 

24 units of property subject to the same 

25 lease, within 3 months after the date 


sradovich on DSK3GMQ082PROD with BILLS
12 

•HR 2078 IH

1 the final unit is placed in service, so 

2 long as the period between the time 

3 the first unit is placed in service and 

4 the time the last unit is placed in 

5 service does not exceed 12 months), 

6 and 

7 ‘‘(III) the user of such property 

8 after the last sale during such 3- 

9 month period remains the same as 

10 when such property was originally 

11 placed in service, 

12 such property shall be treated as originally 

13 placed in service not earlier than the date 

14 of such last sale. 

15 ‘‘(D) COORDINATION WITH SECTION

16 280F.—For purposes of section 280F— 

17 ‘‘(i) AUTOMOBILES.—In the case of a 

18 passenger automobile (as defined in section 

19 280F(d)(5)) which is qualified property, 

20 the Secretary shall increase the limitation 

21 under section 280F(a)(1)(A)(i) by $8,000. 

22 ‘‘(ii) LISTED PROPERTY.—The deduc23 tion allowable under paragraph (1) shall be 

24 taken into account in computing any re25 capture amount under section 280F(b)(2). 


sradovich on DSK3GMQ082PROD with BILLS
13 

•HR 2078 IH

1 ‘‘(iii) INFLATION ADJUSTMENT.—In 

2 the case of any taxable year beginning in 

3 a calendar year after 2018, the $8,000 

4 amount in clause (i) shall be increased by 

5 an amount equal to— 

6 ‘‘(I) such dollar amount, multi7 plied by 

8 ‘‘(II) the automobile price infla9 tion adjustment determined under sec10 tion 280F(d)(7)(B)(i) for the calendar 

11 year in which such taxable year begins 

12 by substituting ‘2017’ for ‘1987’ in 

13 subclause (II) thereof. 

14 If any increase under the preceding sen15 tence is not a multiple of $100, such in16 crease shall be rounded to the nearest mul17 tiple of $100. 

18 ‘‘(E) DEDUCTION ALLOWED IN COMPUTING

19 MINIMUM TAX.—For purposes of determining 

20 alternative minimum taxable income under sec21 tion 55, the deduction under section 167 for 

22 qualified property shall be determined without 

23 regard to any adjustment under section 56.’’. 


sradovich on DSK3GMQ082PROD with BILLS
14 

•HR 2078 IH

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2017. 

4 TITLE VI—FICA AND SECA TAX 

5 RATE REDUCTIONS 

6 SEC. 601. FICA TAX RATE REDUCTIONS. 

7 (a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR8 ANCE.—Sections 3101(a) and 3111(a) of the Internal 

9 Revenue Code of 1986 are each amended by striking ‘‘6.2 

10 percent’’ and inserting ‘‘3.1 percent’’. 

11 (b) HOSPITAL INSURANCE.— 

12 (1) EMPLOYEES.—Section 3101(b) of such 

13 Code is amended— 

14 (A) by striking ‘‘1.45 percent’’ in para15 graph (1) and inserting ‘‘0.725 percent’’, and 

16 (B) by striking ‘‘0.9 percent’’ in paragraph 

17 (2) and inserting ‘‘0.45 percent’’. 

18 (2) EMPLOYERS.—Section 3111(b) of such 

19 Code is amended by striking ‘‘1.45 percent’’ and in20 serting ‘‘0.725 percent’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply remuneration paid after December 

23 31, 2017. 


sradovich on DSK3GMQ082PROD with BILLS
15 

•HR 2078 IH

1 SEC. 602. SECA TAX RATE REDUCTIONS. 

2 (a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR3 ANCE.—Section 1401(a) of the Internal Revenue Code of 

4 1986 is amended— 

5 (1) by striking all that follows ‘‘for such taxable 

6 year’’ and inserting a period, and 

7 (2) by striking ‘‘the following percent’’ and in8 serting ‘‘6.2 percent’’. 

9 (b) HOSPITAL INSURANCE.—Section 1401(b) of such 

10 Code is amended— 

11 (1) by striking all that follows ‘‘for such taxable 

12 year’’ in paragraph (1) and inserting a period, 

13 (2) by striking ‘‘the following percent’’ in para14 graph (1) and inserting ‘‘1.45 percent’’, and 

15 (3) by striking ‘‘0.9 percent’’ in paragraph 

16 (2)(A) and inserting ‘‘0.45’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply with respect to remuneration re19 ceived after December 31, 2017. 

20 TITLE VII—REPEAL OF ESTATE 

21 AND GIFT TAXES 

22 SEC. 701. REPEAL OF ESTATE AND GIFT TAXES. 

23 (a) IN GENERAL.—Subtitle B of the Internal Rev24 enue Code of 1986 (relating to estate, gift, and genera25 tion-skipping taxes) is hereby repealed. 


sradovich on DSK3GMQ082PROD with BILLS
16 

•HR 2078 IH

1 (b) EFFECTIVE DATE.—The repeal made by sub2 section (a) shall apply to estates of decedents dying, gifts 

3 made, and generation-skipping transfers made after the 

4 date of the enactment of this Act. 

Æ 


sradovich on DSK3GMQ082PROD with BILLS