Title: A bill to amend the Internal Revenue Code of 1986 to reduce tax rates across the board.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to reduce the individual and corporate income tax rates by specified amounts.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1210 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1210

 To amend the Internal Revenue Code of 1986 to reduce tax rates across 
                               the board.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2017

Mr. Rounds (for himself and Mr. Hoeven) 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 reduce tax rates across 
                               the board.

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

SECTION 1. REDUCTION IN TAX RATES.

    (a) Individual Tax Rates.--
            (1) In general.--
                    (A) Reduction in rate for initial bracket amount.--
                Clause (i) of section 1(i)(1)(A) of the Internal 
                Revenue Code of 1986 is amended by inserting ``(8 
                percent for taxable years beginning after December 31, 
                2017)'' after ``10 percent''.
                    (B) Reduction in rate for 15-, 25-, 
                28-, and 33-percent rate brackets.--Paragraph (2) of 
                section 1(i) of such Code is amended to read as 
                follows:
            ``(2) Reduction in rates.--The tables under subsections 
        (a), (b), (c), (d), and (e) shall be applied--
                    ``(A) by substituting `13%' for `15%' each place it 
                appears,
                    ``(B) by substituting `23%' for `28%' each place it 
                appears,
                    ``(C) by substituting `26%' for `31%' each place it 
                appears, and
                    ``(D) by substituting `31%' for `36%' each place it 
                appears.''.
                    (C) Reduction in rate for highest rate brackets.--
                Subparagraph (A) of section 1(i)(3) of such Code is 
                amended--
                            (i) by inserting ``(33 percent for taxable 
                        years beginning after December 31, 2017)'' 
                        after ``35 percent'' in clause (i), and
                            (ii) by inserting ``(37.6 percent for 
                        taxable years beginning after December 31, 
                        2017)'' after ``39.6 percent'' in clause (ii).
                    (D) Conforming amendments.--
                            (i) Subparagraph (B) of section 1(g)(7) of 
                        the Internal Revenue Code of 1986 is amended by 
                        striking ``10 percent'' and inserting ``8 
                        percent''.
                            (ii) Paragraph (1) of section 1(h) of such 
                        Code is amended--
                                    (I) by striking ``25 percent'' in 
                                subparagraph (A)(ii)(I) and inserting 
                                ``23 percent'',
                                    (II) by striking ``25 percent'' in 
                                subparagraph (B)(i) and inserting ``23 
                                percent'', and
                                    (III) by striking ``39.6 percent'' 
                                in subparagraph (C)(ii)(I) and 
                                inserting ``37.6 percent''.
                            (iii) Section 3402(p)(2) of such Code is 
                        amended by striking ``10 percent'' and 
                        inserting ``8 percent''.
            (2) Capital gains rates.--
                    (A) In general.--Paragraph (1) of section 1(h) of 
                the Internal Revenue Code of 1986 is amended--
                            (i) by striking ``15 percent'' in 
                        subparagraph (C) and inserting ``13 percent'',
                            (ii) by striking ``20 percent'' in 
                        subparagraph (D) and inserting ``18 percent'',
                            (iii) by striking ``25 percent'' in 
                        subparagraph (E) and inserting ``23 percent'', 
                        and
                            (iv) by striking ``28 percent'' in 
                        subparagraph (F) and inserting ``26 percent''.
                    (B) Rate under alternative minimum tax.--Paragraph 
                (3) of section 55(b) of such Code is amended--
                            (i) by striking ``15 percent'' in 
                        subparagraph (C) and inserting ``13 percent'',
                            (ii) by striking ``20 percent'' in 
                        subparagraph (D) and inserting ``18 percent'', 
                        and
                            (iii) by striking ``25 percent'' in 
                        subparagraph (E) and inserting ``23 percent''.
                    (C) Conforming amendments.--The following sections 
                are each amended by striking ``20 percent'' and 
                inserting ``18 percent'':
                            (i) Section 1445(e)(1).
                            (ii) The second sentence of section 
                        7518(g)(6)(A).
                            (iii) Section 53511(f)(2) of title 46, 
                        United States Code.
    (b) Corporate Tax Rates.--
            (1) In general.--Section 11(b) of the Internal Revenue Code 
        of 1986 is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``15 percent'' in 
                        subparagraph (A) inserting ``13 percent'',
                            (ii) by striking ``25 percent'' in 
                        subparagraph (B) and inserting ``23 percent'',
                            (iii) by striking ``34 percent'' in 
                        subparagraph (C) and inserting ``32 percent'', 
                        and
                            (iv) by striking ``35 percent'' in 
                        subparagraph (C) and inserting ``33 percent'', 
                        and
                    (B) in paragraph (2), by striking ``35 percent'' 
                and inserting ``33 percent''.
            (2) Conforming amendments.--
                    (A) Section 1201(a) of such Code is amended by 
                striking ``35 percent'' each place it appears and 
                inserting ``33 percent''.
                    (B) Paragraphs (1) and (2) of section 1445(e) of 
                such Code are each amended by striking ``35 percent'' 
                and inserting ``33 percent''.
    (c) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2017.
            (2) Amendments related to withholding.--The amendments made 
        by subsections (a)(1)(D)(iii) and (c)(2)(B) shall take effect 
        on January 1, 2018.
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