An original bill to provide for reconciliation pursuant to title II of the concurrent resolution on the budget for fiscal year 2018.

Bill: 115-s-1
Sponsor: Sen. Enzi, Michael B. [R-WY]
Introduced: 2017-11-28 in the Senate
Policy area: Taxation
Subjects: Accounting and auditing
Agricultural equipment and machinery
Alaska
Alaska Natives and Hawaiians
Alcoholic beverages
Arctic and polar regions
Assault and harassment offenses
Athletes
Aviation and airports
Bank accounts, deposits, capital
Budget deficits and national debt
Budget process
Business expenses
Business investment and capital
Capital gains tax
Caribbean area
Charitable contributions
Civil actions and liability
Commodities markets
Commuting
Corporate finance and management
Correctional facilities and imprisonment
Department of the Treasury
Disability and paralysis
Disaster relief and insurance
Drug therapy
Economic development
Egypt
Electric power generation and transmission
Employee benefits and pensions
Employee leave
Employment discrimination and employee rights
Energy revenues and royalties
Executive agency funding and structure
Farmland
Financial services and investments
Floods and storm protection
Food industry and services
Foreign and international corporations
Fraud offenses and financial crimes
Fruit and vegetables
Gambling
Health care costs and insurance
Health care coverage and access
Higher education
Historic sites and heritage areas
Housing and community development funding
Housing finance and home ownership
Housing supply and affordability
Income tax credits
Income tax deductions
Income tax exclusion
Income tax rates
Indian claims
Inflation and prices
Insurance industry and regulation
Interest, dividends, interest rates
Internal Revenue Service (IRS)
Land transfers
Legal fees and court costs
Licensing and registrations
Life, casualty, property insurance
Louisiana
Low- and moderate-income housing
Middle East
Military operations and strategy
Military personnel and dependents
Mississippi
Mississippi River
Motor vehicles
Oil and gas
Pedestrians and bicycling
Poverty and welfare assistance
Prescription drugs
Professional sports
Property tax
Public participation and lobbying
Public utilities and utility rates
Puerto Rico
Research and development
Residential rehabilitation and home repair
Rural conditions and development
Sales and excise taxes
School athletics
Securities
Sex offenses
Small business
Social work, volunteer service, charitable organizations
State and local government operations
State and local taxation
Strategic materials and reserves
Student aid and college costs
Tax administration and collection, taxpayers
Tax reform and tax simplification
Tax treatment of families
Tax-exempt organizations
Taxation of foreign income
Teaching, teachers, curricula
Texas
Transfer and inheritance taxes
Transportation costs
U.S. territories and protectorates
User charges and fees
Wages and earnings
Water storage
Water use and supply
Wilderness and natural areas, wildlife refuges, wild rivers, habitats

Summary:
action_date: 2017-11-28
text: 

Tax Cuts and Jobs Act 

 
This bill amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.
 
With respect to individuals, the bill:
 
 
 replaces the existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with new tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 38.5%); 
 
 increases the standard deduction; 
 
 suspends the deduction for personal exemptions; 
 
 allows a deduction for business income of pass-through entities (i.e., partnerships, S corporations, limited liability companies, sole proprietorships); 
 
 increases the child tax credit and allows a credit for dependents who are not children; 
 
 suspends the deduction for state and local taxes not incurred in carrying on a trade or business or an activity for the production of income; 
 
 suspends the deduction for home equity loan interest; 
 
 repeals the penalty for individuals who fail to maintain minimum essential health coverage as required by the Patient Protection and Affordable Care Act (commonly referred to as the individual mandate); 
 
 suspends the overall limitation on certain itemized deductions; 
 
 suspends the alternative minimum tax for individuals; and 
 
 doubles the basic exemption amount for the estate, gift, and generation-skipping transfer taxes. 
 
 
Many of the provisions in the bill that affect individual taxpayers expire after 2025. 
 
For businesses, the bill: 
 
 
 permanently reduces the corporate tax rate from a maximum of 35% to a flat 20% rate, 
 
permanently repeals the alternative minimum tax for corporations, 
 
allows increased expensing of the costs of certain property, 
 
repeals the deduction for income attributable to domestic production activities,
 
modifies the net operating loss deduction,
 
 limits the deductibility of net interest expenses to 30% percent of the business's adjusted taxable income, and 
 
 modifies the taxation of foreign income.
 
 
The bill also: (1) repeals or modifies several additional credits and deductions for individuals and businesses, (2) directs the Department of the Interior to implement an oil and gas leasing program for the Coastal Plain of the Arctic National Wildlife Refuge (ANWR) in Alaska, and (3) directs the Department of Energy to draw down and sell oil from the Strategic Petroleum Reserve. 

action_date: 2017-11-28
text: 
(This measure has not been amended since it was introduced. The summary of that version is repeated here.)
 

Tax Cuts and Jobs Act 

 
This bill amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.
 
With respect to individuals, the bill:
 
 
 replaces the existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with new tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 38.5%); 
 
 increases the standard deduction; 
 
 suspends the deduction for personal exemptions; 
 
 allows a deduction for business income of pass-through entities (i.e., partnerships, S corporations, limited liability companies, sole proprietorships); 
 
 increases the child tax credit and allows a credit for dependents who are not children; 
 
 suspends the deduction for state and local taxes not incurred in carrying on a trade or business or an activity for the production of income; 
 
 suspends the deduction for home equity loan interest; 
 
 repeals the penalty for individuals who fail to maintain minimum essential health coverage as required by the Patient Protection and Affordable Care Act (commonly referred to as the individual mandate); 
 
 suspends the overall limitation on certain itemized deductions; 
 
 suspends the alternative minimum tax for individuals; and 
 
 doubles the basic exemption amount for the estate, gift, and generation-skipping transfer taxes. 
 
 
Many of the provisions in the bill that affect individual taxpayers expire after 2025. 
 
For businesses, the bill: 
 
 
 permanently reduces the corporate tax rate from a maximum of 35% to a flat 20% rate, 
 
permanently repeals the alternative minimum tax for corporations, 
 
allows increased expensing of the costs of certain property, 
 
repeals the deduction for income attributable to domestic production activities,
 
modifies the net operating loss deduction,
 
 limits the deductibility of net interest expenses to 30% percent of the business's adjusted taxable income, and 
 
 modifies the taxation of foreign income.
 
 
The bill also: (1) repeals or modifies several additional credits and deductions for individuals and businesses, (2) directs the Department of the Interior to implement an oil and gas leasing program for the Coastal Plain of the Arctic National Wildlife Refuge (ANWR) in Alaska, and (3) directs the Department of Energy to draw down and sell oil from the Strategic Petroleum Reserve. 


Legislative actions:
action_date: 2017-11-28
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 269.
action_date: 2017-11-28
text: Committee on the Budget. Original measure reported to Senate by Senator Enzi. Without written report.
action_date: 2017-11-28
text: Committee on the Budget. Original measure reported to Senate by Senator Enzi. Without written report.
action_date: 2017-11-28
text: Introduced in Senate