OAMCEMCGITCET. sm! [file 1 of 5] SLO. AMENDMENT NO. Calendar No. Purpose: To provide a perfecting amendment. IN THE SENATE OF THE UNITED STATES—115th Cong, Ist Sess. H.R.1 To provide for reconcili of the concurrent year 2018. ion pursnant to titles IT and V solution on the budget for fiseal Referred to the Committee on and ordered to be printed Ordered to lie on the table and to be printed intended tobe proposed by to the amendment (No.____) proposed by ke all after the first word and insert the following:ONOTNOTTITSS4.xnt file 2 of 51 SLU 1 TITLE I 2. SEC. 11000. SHORT TITLE, ETC. 3 (a) Snort TITLE.—This title may be cited as the 4 “Tax Cuts and Jobs Act” 5 (b) AMENDMENT OF 1986 CopE.—Exeept as other- wise expressly provided, whenever in this title an amend- ment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference Cw a shall be considered to be made to a ction or other provi- 10 sion of the Internal Revenue Code of 1986. 11 Subtitle A—Individual Tax Reform 12 PART I—TAX RATE REFORM 13. SEC. 11001. MODIFICATION OF RATES. 14 (a) IN GENERAL.—Section 1 is amended by adding 15 at the end the following new subsection: 16 “Gj) Mopirications POR TAXABLE YEARS 2018 17 TuRoven 2025. — 18 “(1) IX GENERAE.—In the case of a taxable 19 year beginning after December 31, 2017, and before 20 © January 1, 2026— 21 “(A) subsection (i) shall not apply, 22 “(B) this section (other than subsection 23 (i)) shall be applied as provided in paragraphs 24 (2) through (7). 25 (2) RATE TABLEONOTNOTTITRS4 xm file 2 of 5] SLC. 3 1 “(A) MARRIED INDIVIDUALS FILING JOINT 2 RETURNS AND SURVIVING SPOUSES.—The fol- 3 lowing table shall be applied in liew of the table 4 contained in subsection (a): “tf taxable income is ‘The tax is: Not over $19,050 107 of taxable income (Over $19,050 but not over 877,400 of the exes over Over $7,400 bt nt ovr $140,000 ts 229% of the excess over ‘Over $140,000 Int not over $820,000... $22,679, plus 249% of the exeess ‘over $140,000. ‘Over $820,000 but not over $400,000 .... $85,879, plus 329% of the excess cover $820,000. ‘Over $400,000 but not over $1,000,000... $91,479, plus 35 cover $400,000, Over $1,000,000 $301,479, plus 38.5% of the exoess ‘er $1,000,000. 1% of the exeess 5 “(B) HEADS OF HOUSEHOLDS.—The fol- 6 lowing table shall be applied in lieu of the table 7 contained in subseetion (bh) “If taxable income i ‘The tax is: Nat over $13,600 10 of taxable income ‘Over $13,600 bat not over $51,800 $1,360, plus 125¢ of the exeess over 813,600, ‘Over $51,800 but not over $70,000 $5,944, plus 22% of the exeess ove $51,800, Over $70,000 bat not over $160,000 $9,948, plus 2476 of the exeess over 70,000, Over $160,000 bt not wer $200,000 ... $31,548, ps 32% oF the exeess over $160,000. ‘Over $200,000 bt not over $500,000... $14,348, plus 359% of the excess ‘over $200,000. Over $500,000 $149,348, plus 38.59% of the excess 0,000. 8 “(C) UNMARRIED INDIVIDUALS OTHER 9 THAN SURVIVING SPOUSES AND HEADS OF 10 HOUSEHOLDS.—The following table shall be ap-OAOTMOTIITAS4.xml [file 2 of 5) SLE auew 4 plied in tien of the table contained in subsection (o: “If taxable income is: The tax is: Not over $0 106 of taxable income ‘Over $9,525 hat not aver 838,700 ius 1246 of the excess Over $38,700 but not over $70,000 nn. $4198.50, ps B25 of the excess over $38,700 Over $70,000 but not over $160,000... $11,999.50, pus 2456 of the excess over $70,000 Over $160,000 but not over $200,000 .... $3,999.50, ps 2256 of the excens avr $160,000 Over $200,000 but not over $500,000... $45,739.50, ps 3596 of the excess over $200,000 ‘Over 500,000 $150,739.50, pls 38.59 of the exe cess over $500,000, “(D) MARRIED INDIVIDUALS FILING SEPA- RATE RETURNS. —The following table shall be applied in lieu of the table contained in sub- section (4) “If taxable income is: The tax is: Not ovr $9 10% of taxable income (Over 89,525 but not over 828,700 $952.50, pls 12% of the excess over $9 Over $98,700 bat not over $70,000 ann $4458.50, plus 22% of the excess over $38,700 Over $70,000 but not over $160,000 .... $11,299.50, ps 247 of the exes aver $70,000 ‘Over $160,000 but not over $200,000 39.50, ple 327 of the excess cer $160,000. ‘ver $20,000 tnt not over $500,000 ... $45,730.50, pins 359 of the excns ‘over $200,000. ver $500,000 $150,739.50, plus 38.5% of the ex cess over $500,000, “(B) ESTATES AND ‘TRUSTS—The fol- lowing table shall be applied in liew of the table contained in subsection (e):OAOTMOTTITHG4 sul [fle 2 of 5] SLC Sear aH ae wH ll 13, 14 15 16 17 18 19 20 5 “If taxable income ‘The tax is: Not over $2,550 10% of taxable ineome Over $2,550 but not over $9,150 $255, plus 249 of the exeess over $2,550. Over $9,150 but not over $12,500 $1,889, plus 359% of the exoess over Over $12,500 0, plus 38.5% of the ex: eas over $12,500, “(P) REFERENCES TO RATE TABI Any reference in this title to a rate of tax under subsection (c) shall be treated as a reference to the corresponding rate bracket under subpara- graph (C) of this paragraph, except that the reference in section 3402(q)(1) to the third low- est rate of tax applicable under subsection (c) shall be treated as a reference to the fourth lowest rate of tax under subparagraph (C) “(3) ADJUSTMENTS.— “(A) No ADJUSTMENT IN 2018—The ta- bles contained in paragraph (2) shall apply without adjustment for taxable years beginning after December 31, 2017, and before January 1, 2019, “(B) SUBSEQUENT YEARS —For taxable years beginning after December 31, 2018, the Secretary. shall prescribe tables. which shall apply in liew of the tables contained in para- graph (2) in the same manner as under para-OMOTMOTTITAS. xml [fle 2 of 5] SLC Cea AnA wD 10 i = 13 14 15 16 7 18 19 20 21 22 a 24 6 graphs (1) and (2) of subsection (f), except that in prescribing such tables— “(i) subsection (f)(3) shall be applied by substituting ‘calendar year 2017" for ‘ealendar year 2016" in subparagraph (A)(ii) thereof, “Gi)_ subsection (f)(7)(B) shall apply to any unmarried individual other than a surviving spouse or head of household, and (iii) subsection (f)(8) shall not apply. “(4) SPECIAL RULES FOR CERTAIN CHILDREN WITH UD PARNED INCOMB- “(A) IN GENERAL—In the case of a child to whom subsection (g) applies for the taxable year, the rules of subparagraphs (B) and (C) shall apply in lica of the rule under s (e)(1). “(B) MODIFICATIONS TO APPLICABLE RATE BRACKETS —In determining the amount ion for the taxable of tax imposed by this se ye on a child described in subparagraph (A), the income tax table otherwise applicable under this subsection to the child shall be applied with the following modONOPMOTTITSS4 01 Sear annawn u 13 14 15 16 17 18 19 20 21 2 23 4 25 file 2 of 5} She 7 “(i) 24-PERCENT — BRACKET.—The maximum taxable income which is taxed at a rate below 24 percent shall not be more than the earned taxable income of such child. “(i) 35-PERCENT — BRACKET—The maximum taxable income which is taxed at a rate below 35 percent shall not be more than the sum of— “(1) the earned taxable income of such child, plus “(I) the minimum. taxable come for the 35-percent bracket in the table under paragraph (2)(E) (as ad- justed under paragraph (3)) for the taxable year. “(iii) 38.5-PERCENT BRACKET—The maximum taxable income which is taxed at a rate below 38.5 percent shall not be more than the sum of— “(1) the earned taxable income of h child, plus “(I) the minimum taxable in- come for the 38.5-pereent bracket in the table under paragraph (2)(E) (asONOTMOPTI78S4.xm! [fle 2 of 5] SLO. Cm ra aAnerun 10 i 12 13 14 15 16 17 18 19 20 21 2 23 24 25 8 adjusted under paragraph (3)) for the taxable year. “(C) COORDINATION WITH CAPITAL GAINS RATES. For purposes of applying nm 1(h) (after the modifications under paragraph (5))— “(i) the maximum zero rate amount. shall not be more than the sum of— “(1) the earned taxable income of such child, plus “(I1) the amount in effect under paragraph (5)(B)(i)(IV) for the tax- able year, and “(i) the maximum 15-pereent rate amount shall not be more than the sum of “(I) the earned taxable income of such child, plus “(ID the amount in effect under paragraph (5)(B)(ii)(IV) for the tax- able year. “(D) EARNED TAXABLE INCOME.—For purposes of this paragraph, the term ‘earned taxable income’ means, with respect to any child for any taxable year, the taxable income of such child reduced (but not below zero) by: