Permanent Extension of Rate Cuts and Extension of National Tax Simplification Act of 2022
Bill: H.R.8214 | Sponsor: Rep. Schweikert, David (R-AZ)
Policy area: Taxation

Summary:
Permanent Extension of Rate Cuts and Extension of National Tax Simplification Act of 2022 or the PERCENTS Act of 2022
This bill makes permanent provisions in Public Law 115-97 (also known as the Tax Cuts and Jobs Act) relating to individual taxpayers, including the modification of individual income and capital gains tax rates and the increased exemption for the alternative minimum tax. It also increases the standard tax deduction and repeals the limitation on itemized tax deductions.

To amend the Internal Revenue Code of 1986 to make permanent certain 
         provisions of Public Law 115-97 affecting individuals.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Permanent Extension of Rate Cuts and 
Extension of National Tax Simplification Act of 2022'' or the 
``PERCENTS Act of 2022''.

SEC. 2. MODIFICATION OF RATES.

    (a) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (b) Married Individuals Filing Joint Returns and Surviving 
Spouses.--Section 1(a) is amended by striking the table contained 
therein and inserting the following:


 
       ``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.''.

    (c) Heads of Households.--Section 1(b) is amended by striking the 
table contained therein and inserting the following:


 
       ``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.''.

    (d) Unmarried Individuals Other Than Surviving Spouses and Heads of 
Households.--Section 1(c) is amended by striking the table contained 
therein and inserting the following:


 
       ``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 $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.''.

    (e) Married Individuals Filing Separate Returns.--Section 1(d) is 
amended by striking the table contained therein and inserting the 
following:


 
       ``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.''.

    (f) Estates and Trusts.--Section 1(e) is amended by striking the 
table contained therein and inserting the following:


 
       ``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.''.

    (g) Inflation Adjustments.--Section 1(f) is amended--
            (1) by amending paragraph (2)(A) to read as follows:
                    ``(A) by increasing the minimum and maximum dollar 
                amounts for each bracket for which a tax is imposed 
                under such table by the cost-of-living adjustment for 
                such calendar year, determined under this subsection 
                for such calendar year by substituting `2017' for 
                `2016' in paragraph (3)(A)(ii),'',
            (2) by amending paragraph (7) to read as follows:
            ``(7) Rounding.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if any increase determined under 
                paragraph (2)(A) is not a multiple of $25, such 
                increase shall be rounded to the next lowest multiple 
                of $25.
                    ``(B) Joint returns, etc.--In the case of a table 
                prescribed under subsection (a), subparagraph (A) shall 
                be applied by substituting `$50' for `$25' both places 
                it appears.'',
            (3) by striking paragraph (8), and
            (4) in the heading, by striking ``Phaseout of Marriage 
        Penalty in 15-percent Bracket; Adjustments'' and inserting 
        ``Adjustments''.
    (h) Application of Income Tax Brackets to Capital Gains Brackets.--
Section 1(h) is amended--
            (1) in paragraph (1)(B)(i), by striking ``25 percent'' and 
        inserting ``22 percent'',
            (2) in paragraph (1)(C)(ii)(I), by striking ``which would 
        (without regard to this paragraph) be taxed at a rate below 
        39.6 percent'' and inserting ``below the maximum 15-percent 
        rate amount'', and
            (3) by adding at the end the following new paragraphs:
            ``(12) Maximum 15-percent rate amount defined.--For 
        purposes of this subsection, the maximum 15-percent rate amount 
        shall be--
                    ``(A) in the case of a joint return or surviving 
                spouse (as defined in section 2(a)), $479,000 (\1/2\ 
                such amount in the case of a married individual filing 
                a separate return),
                    ``(B) in the case of an individual who is a head of 
                household (as defined in section 2(b)), $452,400,
                    ``(C) in the case of any other individual (other 
                than an estate or trust), $425,800, and
                    ``(D) in the case of an estate or trust, $12,700.
            ``(13) Determination of 0 percent rate bracket for estates 
        and trusts.--In the case of any estate or trust, paragraph 
        (1)(B) shall be applied by treating the amount determined in 
        clause (i) thereof as being equal to $2,600.
            ``(14) Inflation adjustment.--
                    ``(A) In general.--Each of the dollar amounts in 
                paragraphs (12) and (13) 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 2017' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A) is not a multiple of $50, such increase shall be 
                rounded to the next lowest multiple of $50.''.
    (i) Conforming Amendments.--
            (1) Section 1 is amended by striking subsections (i) and 
        (j).
            (2) Section 3402(q)(1) is amended by striking ``third 
        lowest'' and inserting ``fourth lowest''.
    (j) Application of Section 15.--
            (1) In general.--Subsection (a) of section 15 is amended by 
        striking ``If any rate of tax'' and inserting ``In the case of 
        a corporation, if any rate of tax''.
            (2) Conforming amendments.--
                    (A) Section 15 is amended by striking subsections 
                (d), (e), and (f).
                    (B) Section 6013(c) is amended by striking 
                ``sections 15, 443, and 7851(a)(1)(A)'' and inserting 
                ``section 443''.
                    (C) The heading of section 15 is amended by 
                inserting ``on corporations'' after ``effect of 
                changes''.
                    (D) The table of sections for part III of 
                subchapter A of chapter 1 is amended by striking the 
                item relating to section 15 and inserting the following 
                new item:

``Sec. 15. Effect of changes on corporations.''.
    (k) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Application of section 15.--Section 15 of the Internal 
        Revenue Code of 1986 shall not apply to any change in a rate of 
        tax by reason of--
                    (A) section 1(j) of such Code (as in effect before 
                its repeal by this section), or
                    (B) any amendment made by this Act.

SEC. 3. INCREASE IN STANDARD DEDUCTION.

    (a) In General.--Section 63(c)(2) is amended--
            (1) by striking ``$4,400'' in subparagraph (B) and 
        inserting ``$18,000'', and
            (2) by striking ``$3,000'' in subparagraph (C) and 
        inserting ``$12,000''.
    (b) Inflation Adjustment.--Section 63(c)(4) is amended to read as 
follows:
            ``(4) Adjustments for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2018, each dollar amount in paragraph 
                (2)(B), (2)(C), or (5) or subsection (f) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting for `2016' in 
                        subparagraph (A)(ii) thereof--
                                    ``(I) in the case of the dollar 
                                amounts contained in paragraph (2)(B) 
                                or (2)(C), `2017',
                                    ``(II) in the case of the dollar 
                                amounts contained in paragraph (5)(A) 
                                or subsection (f), `1987', and
                                    ``(III) in the case of the dollar 
                                amount contained in paragraph (5)(B), 
                                `1997'.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A) is not a multiple of $50, such increase shall be 
                rounded to the next lowest multiple of $50.''.
    (c) Conforming Amendments.--
            (1) Section 1(f)(7)(A) is amended by striking ``section 
        63(c)(4),''.
            (2) Section 1(f)(7)(B) is amended by striking ``sections 
        63(c)(4) and'' and inserting ``section''.
            (3) Section 63(c) is amended by striking paragraph (7).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

    (a) In General.--Part 1 of subchapter B of chapter 1 is amended by 
striking section 68 (and the item relating to such section in the table 
of sections for such part).
    (b) Conforming Amendments.--
            (1) Section 1(f)(7)(A), as amended by section 2, is amended 
        by striking ``or section 68(b)(2)''.
            (2) Section 56(b)(1) is amended by striking subparagraph 
        (E).
            (3) Section 164(b)(5)(H)(ii)(III) is amended by striking 
        ``(as determined under section 68(b))''.
            (4) Section 164(b)(5)(H) is amended by adding at the end 
        the following new clause:
                            ``(iii) Applicable amount defined.--For 
                        purposes of clause (ii), the term `applicable 
                        amount' means--
                                    ``(I) $300,000 in the case of a 
                                joint return or a surviving spouse,
                                    ``(II) $275,000 in the case of a 
                                head of household,
                                    ``(III) $250,000 in the case of an 
                                individual who is not married and who 
                                is not a surviving spouse or head of 
                                household, and
                                    ``(IV) \1/2\ the amount applicable 
                                under subclause (I) in the case of a 
                                married individual filing a separate 
                                return.
                        For purposes of this paragraph, marital status 
                        shall be determined under section 7703. In the 
                        case of any taxable year beginning in calendar 
                        years after 2017, each of the dollar amounts in 
                        this clause shall be increased by an amount 
                        equal to such dollar amount, multiplied by the 
                        cost-of-living adjustment determined under 
                        section 1(f)(3) for the calendar year in which 
                        the taxable year begins, determined by 
                        substituting `2012' for `2016' in subparagraph 
                        (A)(ii) thereof. If any amount after adjustment 
                        under the preceding sentence is not a multiple 
                        of $50, such amount shall be rounded to the 
                        next lowest multiple of $50.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE PERMANENT.

    (a) In General.--Section 55(d)(1) is amended--
            (1) by striking ``$78,750'' in subparagraph (A) and 
        inserting ``$109,400'', and
            (2) by striking ``$50,600'' in subparagraph (B) and 
        inserting ``$70,300''.
    (b) Phase-Out of Exemption Amount.--Section 55(d)(2) is amended--
            (1) by striking ``$150,000'' in subparagraph (A) and 
        inserting ``$1,000,000'', and
            (2) by striking subparagraphs (B) and (C) and by inserting 
        the following new subparagraphs:
                    ``(B) 50 percent of the dollar amount applicable 
                under subparagraph (A) in the case of a taxpayer 
                described in paragraph (1)(B) or (1)(C), and
                    ``(C) $75,000 in the case of a taxpayer described 
                in paragraph (1)(D).''.
    (c) Inflation Adjustment.--Section 55(d)(3) is amended to read as 
follows:
            ``(3) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2018, each dollar 
        amount described in clause (i) or (ii) of subparagraph (B) 
        shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting--
                            ``(i) in the case of a dollar amount 
                        contained in paragraph (1)(D) or (2)(C) or in 
                        subsection (b)(1)(A), `calendar year 2011' for 
                        `calendar year 2016' in subparagraph (A)(ii) 
                        thereof, and
                            ``(ii) in the case of a dollar amount 
                        contained in paragraph (1)(A), (1)(B), or 
                        (2)(A), `calendar year 2017' for `calendar year 
                        2016' in subparagraph (A)(ii) thereof.
                Any increased amount determined under this paragraph 
                shall be rounded to the nearest multiple of $100 ($50 
                in the case of the dollar amount contained in paragraph 
                (2)(C)).''.
    (d) Conforming Amendment.--Section 55(d) is amended by striking 
paragraph (4).
    (e) Effective Date.--The amendments made by this subsection shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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