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 max-
imum on the capital gains rate, to make permanent 
the deduction for dividends received for repatriated for-
eign earnings, to reduce the rate of payroll and self- 
employment taxes, to make 100-percent bonus deprecia-
tion permanent, and to repeal the Federal estate and 
gift taxes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
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 Rev-
enue Code of 1986 is amended by striking paragraphs (2) 
and (3), by redesignating paragraph (4) as paragraph (3), 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
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 re-
gard 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 pre-
scribing the tables under subsection (f) which 
apply with respect to taxable years beginning 
after 2016, the $1,000,000 amount in subpara-
graph (A) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under subsection (f)(3) for the 
calendar year in which the taxable year be-
gins determined by substituting ‘calendar 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
(i) by striking ‘‘35 percent’’ and in-
serting ‘‘the rate of tax in effect for the 
taxable year under section 11(b)’’, and 
(ii) by striking ‘‘of the gain’’ and in-
serting ‘‘multiplied by the gain’’. 
(B) Section 1445(e)(2) of such Code is amend-
ed by striking ‘‘35 percent of the amount’’ and in-
serting ‘‘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 amend-
ed— 
(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 in-
serting ‘‘multiplied by the amount’’. 
(D) Section 1446(b)(2)(B) of such Code is 
amended by striking ‘‘section 11(b)(1)’’ and insert-
ing ‘‘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 insert-
ing ‘‘section 11(b)’’. 
(c) EFFECTIVE DATE.— 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
(1) IN
GENERAL.—Except as otherwise pro-
vided 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 subpara-
graphs (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. 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
TITLE IV—MODIFICATION AND 
PERMANENT EXTENSION OF 
THE INCENTIVES TO REIN-
VEST 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 REPATRI-
ATION.—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 ACCU-
MULATED 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 ex-
VerDate 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
ceed the sum of the current and accumulated earn-
ings 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 for-
eign corporations of the United States shareholder.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 965(b) of such Code is amend-
ed by striking paragraph (2) and by redesig-
nating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
(B) Section 965(c) of such Code is amend-
ed 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 re-
designated 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 share-
holder.’’. 
(d) CLERICAL AMENDMENTS.— 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
(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 in-
serting ‘‘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 PER-
CENT AND MADE PERMANENT. 
(a) INCREASE.—Section 168(k)(1)(A) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘50 per-
cent’’ and inserting ‘‘100 percent’’. 
(b) MADE PERMANENT.—Section 168(k)(2) of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(2) QUALIFIED PROPERTY.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means property— 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
‘‘(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 im-
provement property, and 
‘‘(ii) the original use of which com-
mences with the taxpayer. 
‘‘(B) EXCEPTION FOR ALTERNATIVE DE-
PRECIATION
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.— 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
‘‘(i) 
SALE-LEASEBACKS.—For 
pur-
poses 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 prop-
erty, 
‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser 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 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
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 deduc-
tion allowable under paragraph (1) shall be 
taken into account in computing any re-
capture amount under section 280F(b)(2). 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
‘‘(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, multi-
plied by 
‘‘(II) the automobile price infla-
tion adjustment determined under sec-
tion 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 sen-
tence is not a multiple of $100, such in-
crease shall be rounded to the nearest mul-
tiple of $100. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—For purposes of determining 
alternative minimum taxable income under sec-
tion 55, the deduction under section 167 for 
qualified property shall be determined without 
regard to any adjustment under section 56.’’. 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
(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 INSUR-
ANCE.—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 para-
graph (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 in-
serting ‘‘0.725 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply remuneration paid after December 
31, 2017. 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
SEC. 602. SECA TAX RATE REDUCTIONS. 
(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.—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 in-
serting ‘‘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 para-
graph (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 re-
ceived 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 Rev-
enue Code of 1986 (relating to estate, gift, and genera-
tion-skipping taxes) is hereby repealed. 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply to estates of decedents dying, gifts 
made, and generation-skipping transfers made after the 
date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
19:58 Apr 24, 2017
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6301
E:\BILLS\H2078.IH
H2078
sradovich on DSK3GMQ082PROD with BILLS