Tax Cuts and Jobs Middle Class Enhancement Act

Tax Cuts and Jobs Middle Class Enhancement Act

This bill amends the Internal Revenue Code to exclude from gross income up to $5,000 received by an individual as a bonus after December 22, 2017, and before January 1, 2019. The bill defines a "bonus" as amounts paid to an employee other than amounts obligated under an employment contract.

The bill makes permanent the tax reductions and other provisions for individuals that were enacted in P.L 115-97 (commonly known as the Tax Cuts and Jobs Act) and are scheduled to expire at the end of 2025.

The bill also:

• increases the standard deduction,
• makes permanent the reduction in the adjusted gross income threshold that must be exceeded before a taxpayer is allowed to claim an itemized deduction for medical expenses, and
• increases the refundable portion of the child tax credit.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5372 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5372

 To amend the Internal Revenue Code of 1986 to make permanent certain 
        provisions of Public Law 115-97, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2018

 Mr. Mitchell introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to make permanent certain 
        provisions of Public Law 115-97, and for other purposes.

    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 ``Tax Cuts and Jobs Middle Class 
Enhancement Act''.

SEC. 2. EXCLUSION OF 2018 BONUSES FROM GROSS INCOME.

    (a) In General.--Gross income shall not include amounts received by 
an individual as a bonus after December 22, 2017, and before January 1, 
2019.
    (b) Limitation.--The amount of gain excluded from gross income 
under subsection (a) with respect to an individual shall not exceed 
$5,000.
    (c) Bonus Defined.--For purposes of this section, the term 
``bonus'' means amounts paid to an employee other than amounts 
obligated under an employment contract.

SEC. 3. CERTAIN PROVISIONS OF PUBLIC LAW 115-97 MADE PERMANENT.

    Any provision of subtitle A or B of Public Law 115-97, or any 
amendment made by such a provision, that terminates on December 31, 
2025, shall not terminate on such date.

SEC. 4. INCREASE IN STANDARD DEDUCTION.

    (a) In General.--Section 63(c)(7) of the Internal Revenue Code of 
1986 is amended--
            (1) in subparagraph (A), by striking ``and'' at the end of 
        clause (i), by striking ``$12,000'' in clause (ii) and 
        inserting ``$13,000'', by striking the period at the end of 
        clause (ii) and inserting ``, and'', and by adding at the end 
        the following new clause:
                            ``(iii) by substituting `$26,000' for `200 
                        percent of the dollar amount in effect under 
                        subparagraph (C) for the taxable year''', and
            (2) in subparagraph (B)(ii), by striking ``the $18,000 and 
        $12,000 amounts'' and inserting ``the dollar amounts''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 11021 of Public Law 
115-97.

SEC. 5. REDUCTION IN MEDICAL EXPENSE DEDUCTION FLOOR.

    (a) In General.--Section 213 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a), by striking ``10 percent'' and 
        inserting ``7.5 percent'', and
            (2) by striking subsection (f).
    (b) Minimum Tax Preference Not To Apply.--Section 56(b)(1) is 
amended by striking subparagraph (B).
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 11027 of Public Law 
115-97.

SEC. 6. INCREASE IN REFUNDABLE PORTION OF THE CHILD TAX CREDIT.

    (a) In General.--Section 24 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (d)(1)(A), by inserting ``, subsection 
        (h)(4),'' after ``this subsection'', and
            (2) in subsection (h), by striking paragraph (5) and 
        redesignating paragraphs (6) and (7) as paragraph (5) and (6), 
        respectively.
    (b) Conforming Amendments.--Paragraphs (1) and (4)(C) of section 
24(h) of the Internal Revenue Code of 1986 are each amended by striking 
``(7)'' and inserting ``(6)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 11022 of Public Law 
115-97.
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