125th Morrison Congress

2nd Session

H.R. 125-016

Title of the Bill: Tax Cut Act

Main Author(s): Rep. Karissa Kimble (R-OH)

Co-Sponsor(s): Sen. Henry Lin (R-CA), Sen. Claire Cagwin (R-NC)

BE IT ENACTED BY THE MORRISON CONGRESS

1 SECTION 1: Findings
2 Congress makes the following findings:
3 1) Income tax cuts encourage wise investments. (i)
4 2) Putting money back into the hands of those who make money creates more jobs (ii)
5 3) When people have more money, it increases consumer spending, which keeps
6 companies profitable and opens up jobs to hire more workers. (ii)
7 4) Reducing taxes can give people more of an incentive to work. (iii)
8 5) Income tax rates in the United States (iv)
9 a) $0$9,275 10%
10 b) $9,276$37,650 15%
11 c) $37,651$91,150 25%
12 d) $91,151$190,150 28%
13 e) $190,151$ 413,350 33%
14 f) $413,351$415,050 35%
15 g) $415,051 or more 39.6%
16
17 SECTION 2: Purpose
18 This bill provides that the general wealth of the people will increase by reducing the amount
19 of revenue taken from them by the government.
20 - $0$9,275 5%
21 - $9,276$37,650 8.3%
22 - $37,651$91,150 16.3%
23
- $91,151$190,150 19%
24
- $190,151$ 413,350 24.1%
25
26 - $413,351$415,050 26.3%
27 - $415,051 or more 31.5%
28
29 SECTION 3: General Provisions
30 This act will reduce the income tax of all citizens, yet maintain a fair and progressive tax rate
31 dependent on income, each rate was altered according to the formula R=(1-.6+.01t)*t,
32 where t is the original income tax rate, and R is the reduced income tax rate. For incomes
of $0$9,275: from 10% to 5%; For incomes of $9,276$37,650: from 15% to 8.3%; For
33
incomes of $37,651$91,150: from 25% to 16.3%; For incomes of $91,151$190,150:
34 from 28% to 19%; For incomes of $190,151$ 413,350: from 33% to 24.1%; For incomes
35 of $413,351$415,050: from 35% to 26.3%; and for incomes of $415,051 or more: from
36 39% to 31.5%. Lowering income tax would secure the economy by increasing consumer
37 spending. When consumer spending is increased, companies make further profit, which
38 then opens up more jobs. Lower taxes give people incentive to work because they are
39 working for something, whereas high taxes discourage work and investments since
40 their money goes right back to the government. Subsequently, this bill would incentivise
 41 the government to evaluate critically their appropriations, and potentially cut back on
42 unnecessary and improper spending.
43
44 SECTION 4: Definitions
45 1. Income tax: tax levied directly on personal income.
46 2. Consumer spending: what households buy to fulfill everyday needs.

Works Cited:
I. https://www.brookings.edu/research/effects-of-income-tax-changes-on-economic-growth/
II. https://www.thebalance.com/tax-cuts-definition-types-and-how-they-work-3306328
III. https://www.thoughtco.com/effect-of-income-taxes-on-economic-growth-1146370
IV. https://www.irs.com/articles/projected-us-tax-rates-2016