S.Amdt. 1704

SA 1704. Mr. KAINE (for himself and Mr. Manchin) submitted an
amendment intended to be proposed to amendment SA 1618 proposed by Mr.
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill
H.R. 1, to provide for reconciliation pursuant to titles II and V of
the concurrent resolution on the budget for fiscal year 2018; which was
ordered to lie on the table; as follows:

Beginning on page 104, strike line 15 and all that follows
through page 112, line 12 and insert the following:

Subtitle B--Permanent Individual Income Tax Relief for Middle Class

SEC. 12001. AMENDMENT OF INCOME TAX BRACKETS.

(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--The table contained in subsection (a) of section 1
is amended to read as follows:

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 $140,000.  $8,907, plus 22% of the excess over
$77,400.
Over $140,000 but not over $320,000  $22,679, plus 24% of the excess
over $140,000.
Over $320,000 but not over $400,000  $65,879, plus 32% of the excess
over $320,000.
Over $400,000 but not over $480,050  $91,479, plus 35% of the excess
over $400,000.
Over $480,050......................  $119,496.50, plus 39.6% of the
excess over $480,050.

(b) Heads of Households.--The table contained in subsection
(b) of section 1 is amended to read as follows:

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 $70,000..  $5,944, plus 22% of the excess over
$51,800.
Over $70,000 but not over $160,000.  $9,948, plus 24% of the excess over
$70,000.
Over $160,000 but not over $200,000  $31,548, plus 32% of the excess
over $160,000.
Over $200,000 but not over $453,350  $44,348, plus 35% of the excess
over $200,000.
Over $453,350......................  $133,020.50, plus 39.6% of the
excess over $453,350.

(c) Unmarried Individuals Other Than Surviving Spouses and
Heads of Households.--The table contained in subsection (c)
of section 1 is amended to read as follows:

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 $70,000..  $4,453.50, plus 22% of the excess
over $38,700.
Over $70,000 but not over $160,000.  $11,339.50, plus 24% of the excess
over $70,000.
Over $160,000 but not over $200,000  $32,939.50, plus 32% of the excess
over $160,000.
Over $200,000 but not over $426,700  $45,739.50, plus 35% of the excess
over $200,000.
Over $426,700......................  $125,084.50, plus 39.6% of the
excess over $426,700.

[[Page S7593]]

(d) Married Individuals Filing Separate Returns.--The table
contained in subsection (d) of section 1 is amended to read
as follows:

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 $70,000..  $4,453.50, plus 22% of the excess
over $38,700.
Over $70,000 but not over $160,000.  $11,339.50, plus 24% of the excess
over $70,000.
Over $160,000 but not over $200,000  $32,939.50, plus 32% of the excess
over $160,000.
Over $200,000 but not over $240,026  $45,739.50, plus 35% of the excess
over $200,000.
Over $240,026......................  $59,748.60, plus 39.6% of the
excess over $240,026.

(e) Estates and Trusts.--The table contained in subsection
(e) of section 1 is amended to read as follows:

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 $12,700...  $1,839, plus 35% of the excess over
$9,150.
Over $12,700.......................  $3,081.50, plus 39.6% of the excess
over $12,700.

(f) Inflation Adjustment.--Section 1(f)(2)(A), as amended
by this Act, is amended by striking ``1992'' and inserting
``2017''.
(g) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2025.

SEC. 12002. DECREASE IN ESTATE AND GIFT TAX EXEMPTION.

(a) In General.--Section 2010(c)(3) is amended by striking
subparagraph (C), as added by this Act.
(b) Conforming Amendment.--Subsection (g) of section 2001
is amended to read as follows:
``(g) Modifications to Gift Tax Payable to Reflect
Different Tax Rates.--For purposes of applying subsection
(b)(2) with respect to 1 or more gifts, the rates of tax
under subsection (c) in effect at the decedent's death shall,
in lieu of the rates of tax in effect at the time of such
gifts, be used both to compute--
``(1) the tax imposed by chapter 12 with respect to such
gifts, and
``(2) the credit allowed against such tax under section
2505, including in computing--
``(A) the applicable credit amount under section
2505(a)(1), and
``(B) the sum of the amounts allowed as a credit for all
preceding periods under section 2505(a)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying and gifts made
after December 31, 2017.

SEC. 12003. CORPORATE TAX RATE.

(a) In General.--Section 11(b), as amended by this Act, is
amended by striking ``20 percent'' and inserting ``25
percent''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2018.
______