Permanent Extension of Rate Cuts and Extension of National Tax Simplification Act of 2022 or the PERCENTS Act of 2022
This bill makes permanent provisions in Public Law 115-97 (also known as the Tax Cuts and Jobs Act) relating to individual taxpayers, including the modification of individual income and capital gains tax rates and the increased exemption for the alternative minimum tax. It also increases the standard tax deduction and repeals the limitation on itemized tax deductions.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8214 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8214
To amend the Internal Revenue Code of 1986 to make permanent certain
provisions of Public Law 115-97 affecting individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 23, 2022
Mr. Schweikert (for himself, Mr. Rice of South Carolina, Mrs. Walorski,
Mr. Wenstrup, Mr. Ferguson, Mr. Kustoff, Mrs. Miller of West Virginia,
Mr. Hern, Mr. Smith of Nebraska, Mr. LaHood, Mr. Smith of Missouri, Mr.
Murphy of North Carolina, and Mr. Arrington) 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 affecting individuals.
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 ``Permanent Extension of Rate Cuts and
Extension of National Tax Simplification Act of 2022'' or the
``PERCENTS Act of 2022''.
SEC. 2. MODIFICATION OF RATES.
(a) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(b) Married Individuals Filing Joint Returns and Surviving
Spouses.--Section 1(a) is amended by striking the table contained
therein and inserting the following:
``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 $165,000... $8,907, plus 22% of the excess
over $77,400.
Over $165,000 but not over $315,000.. $28,179, plus 24% of the excess
over $165,000.
Over $315,000 but not over $400,000.. $64,179, plus 32% of the excess
over $315,000.
Over $400,000 but not over $600,000.. $91,379, plus 35% of the excess
over $400,000.
Over $600,000........................ $161,379, plus 37% of the excess
over $600,000.''.
(c) Heads of Households.--Section 1(b) is amended by striking the
table contained therein and inserting the following:
``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 $82,500.... $5,944, plus 22% of the excess
over $51,800.
Over $82,500 but not over $157,500... $12,698, plus 24% of the excess
over $82,500.
Over $157,500 but not over $200,000.. $30,698, plus 32% of the excess
over $157,500.
Over $200,000 but not over $500,000.. $44,298, plus 35% of the excess
over $200,000.
Over $500,000........................ $149,298, plus 37% of the excess
over $500,000.''.
(d) Unmarried Individuals Other Than Surviving Spouses and Heads of
Households.--Section 1(c) is amended by striking the table contained
therein and inserting the following:
``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 $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $500,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $500,000........................ $150,689.50, plus 37% of the
excess over $500,000.''.
(e) Married Individuals Filing Separate Returns.--Section 1(d) is
amended by striking the table contained therein and inserting the
following:
``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 $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $300,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $300,000........................ $80,689.50, plus 37% of the
excess over $300,000.''.
(f) Estates and Trusts.--Section 1(e) is amended by striking the
table contained therein and inserting the following:
``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 $12,500..... $1,839, plus 35% of the excess
over $9,150.
Over $12,500......................... $3,011.50, plus 37% of the excess
over $12,500.''.
(g) Inflation Adjustments.--Section 1(f) is amended--
(1) by amending paragraph (2)(A) to read as follows:
``(A) by increasing the minimum and maximum dollar
amounts for each bracket for which a tax is imposed
under such table by the cost-of-living adjustment for
such calendar year, determined under this subsection
for such calendar year by substituting `2017' for
`2016' in paragraph (3)(A)(ii),'',
(2) by amending paragraph (7) to read as follows:
``(7) Rounding.--
``(A) In general.--Except as provided in
subparagraph (B), if any increase determined under
paragraph (2)(A) is not a multiple of $25, such
increase shall be rounded to the next lowest multiple
of $25.
``(B) Joint returns, etc.--In the case of a table
prescribed under subsection (a), subparagraph (A) shall
be applied by substituting `$50' for `$25' both places
it appears.'',
(3) by striking paragraph (8), and
(4) in the heading, by striking ``Phaseout of Marriage
Penalty in 15-percent Bracket; Adjustments'' and inserting
``Adjustments''.
(h) Application of Income Tax Brackets to Capital Gains Brackets.--
Section 1(h) is amended--
(1) in paragraph (1)(B)(i), by striking ``25 percent'' and
inserting ``22 percent'',
(2) in paragraph (1)(C)(ii)(I), by striking ``which would
(without regard to this paragraph) be taxed at a rate below
39.6 percent'' and inserting ``below the maximum 15-percent
rate amount'', and
(3) by adding at the end the following new paragraphs:
``(12) Maximum 15-percent rate amount defined.--For
purposes of this subsection, the maximum 15-percent rate amount
shall be--
``(A) in the case of a joint return or surviving
spouse (as defined in section 2(a)), $479,000 (\1/2\
such amount in the case of a married individual filing
a separate return),
``(B) in the case of an individual who is a head of
household (as defined in section 2(b)), $452,400,
``(C) in the case of any other individual (other
than an estate or trust), $425,800, and
``(D) in the case of an estate or trust, $12,700.
``(13) Determination of 0 percent rate bracket for estates
and trusts.--In the case of any estate or trust, paragraph
(1)(B) shall be applied by treating the amount determined in
clause (i) thereof as being equal to $2,600.
``(14) Inflation adjustment.--
``(A) In general.--Each of the dollar amounts in
paragraphs (12) and (13) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under subsection (f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2017'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $50, such increase shall be
rounded to the next lowest multiple of $50.''.
(i) Conforming Amendments.--
(1) Section 1 is amended by striking subsections (i) and
(j).
(2) Section 3402(q)(1) is amended by striking ``third
lowest'' and inserting ``fourth lowest''.
(j) Application of Section 15.--
(1) In general.--Subsection (a) of section 15 is amended by
striking ``If any rate of tax'' and inserting ``In the case of
a corporation, if any rate of tax''.
(2) Conforming amendments.--
(A) Section 15 is amended by striking subsections
(d), (e), and (f).
(B) Section 6013(c) is amended by striking
``sections 15, 443, and 7851(a)(1)(A)'' and inserting
``section 443''.
(C) The heading of section 15 is amended by
inserting ``on corporations'' after ``effect of
changes''.
(D) The table of sections for part III of
subchapter A of chapter 1 is amended by striking the
item relating to section 15 and inserting the following
new item:
``Sec. 15. Effect of changes on corporations.''.
(k) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Application of section 15.--Section 15 of the Internal
Revenue Code of 1986 shall not apply to any change in a rate of
tax by reason of--
(A) section 1(j) of such Code (as in effect before
its repeal by this section), or
(B) any amendment made by this Act.
SEC. 3. INCREASE IN STANDARD DEDUCTION.
(a) In General.--Section 63(c)(2) is amended--
(1) by striking ``$4,400'' in subparagraph (B) and
inserting ``$18,000'', and
(2) by striking ``$3,000'' in subparagraph (C) and
inserting ``$12,000''.
(b) Inflation Adjustment.--Section 63(c)(4) is amended to read as
follows:
``(4) Adjustments for inflation.--
``(A) In general.--In the case of a taxable year
beginning after 2018, each dollar amount in paragraph
(2)(B), (2)(C), or (5) or subsection (f) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting for `2016' in
subparagraph (A)(ii) thereof--
``(I) in the case of the dollar
amounts contained in paragraph (2)(B)
or (2)(C), `2017',
``(II) in the case of the dollar
amounts contained in paragraph (5)(A)
or subsection (f), `1987', and
``(III) in the case of the dollar
amount contained in paragraph (5)(B),
`1997'.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $50, such increase shall be
rounded to the next lowest multiple of $50.''.
(c) Conforming Amendments.--
(1) Section 1(f)(7)(A) is amended by striking ``section
63(c)(4),''.
(2) Section 1(f)(7)(B) is amended by striking ``sections
63(c)(4) and'' and inserting ``section''.
(3) Section 63(c) is amended by striking paragraph (7).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.
(a) In General.--Part 1 of subchapter B of chapter 1 is amended by
striking section 68 (and the item relating to such section in the table
of sections for such part).
(b) Conforming Amendments.--
(1) Section 1(f)(7)(A), as amended by section 2, is amended
by striking ``or section 68(b)(2)''.
(2) Section 56(b)(1) is amended by striking subparagraph
(E).
(3) Section 164(b)(5)(H)(ii)(III) is amended by striking
``(as determined under section 68(b))''.
(4) Section 164(b)(5)(H) is amended by adding at the end
the following new clause:
``(iii) Applicable amount defined.--For
purposes of clause (ii), the term `applicable
amount' means--
``(I) $300,000 in the case of a
joint return or a surviving spouse,
``(II) $275,000 in the case of a
head of household,
``(III) $250,000 in the case of an
individual who is not married and who
is not a surviving spouse or head of
household, and
``(IV) \1/2\ the amount applicable
under subclause (I) in the case of a
married individual filing a separate
return.
For purposes of this paragraph, marital status
shall be determined under section 7703. In the
case of any taxable year beginning in calendar
years after 2017, each of the dollar amounts in
this clause shall be increased by an amount
equal to such dollar amount, multiplied by the
cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting `2012' for `2016' in subparagraph
(A)(ii) thereof. If any amount after adjustment
under the preceding sentence is not a multiple
of $50, such amount shall be rounded to the
next lowest multiple of $50.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE PERMANENT.
(a) In General.--Section 55(d)(1) is amended--
(1) by striking ``$78,750'' in subparagraph (A) and
inserting ``$109,400'', and
(2) by striking ``$50,600'' in subparagraph (B) and
inserting ``$70,300''.
(b) Phase-Out of Exemption Amount.--Section 55(d)(2) is amended--
(1) by striking ``$150,000'' in subparagraph (A) and
inserting ``$1,000,000'', and
(2) by striking subparagraphs (B) and (C) and by inserting
the following new subparagraphs:
``(B) 50 percent of the dollar amount applicable
under subparagraph (A) in the case of a taxpayer
described in paragraph (1)(B) or (1)(C), and
``(C) $75,000 in the case of a taxpayer described
in paragraph (1)(D).''.
(c) Inflation Adjustment.--Section 55(d)(3) is amended to read as
follows:
``(3) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2018, each dollar
amount described in clause (i) or (ii) of subparagraph (B)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting--
``(i) in the case of a dollar amount
contained in paragraph (1)(D) or (2)(C) or in
subsection (b)(1)(A), `calendar year 2011' for
`calendar year 2016' in subparagraph (A)(ii)
thereof, and
``(ii) in the case of a dollar amount
contained in paragraph (1)(A), (1)(B), or
(2)(A), `calendar year 2017' for `calendar year
2016' in subparagraph (A)(ii) thereof.
Any increased amount determined under this paragraph
shall be rounded to the nearest multiple of $100 ($50
in the case of the dollar amount contained in paragraph
(2)(C)).''.
(d) Conforming Amendment.--Section 55(d) is amended by striking
paragraph (4).
(e) Effective Date.--The amendments made by this subsection shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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