year for which the election under section 60 is made, and (2) 17 percent of such excludable compensation during the calendar year in the case of all calendar years subsequent to the calendar years described in paragraph (1). (b) Liability for tax The tax imposed by this section shall be paid by the employer. (c) Excludable compensation For purposes of subsection (a), the term excludable compensation means any remuneration for services performed as an employee other than— (1) wages (as defined in section 3121(a) without regard to paragraph (1) thereof) which are paid in cash, (2) remuneration for services performed outside the United States, and (3) retirement contributions to or under any plan or arrangement which makes retirement distributions (as defined in section 60A(d)). (d) Employees to whom section applies This section shall apply to an employee who is employed in any activity by— (1) any organization which is exempt from taxation under this chapter, or (2) any agency or instrumentality of the United States, any State or political subdivision of a State, or the District of Columbia. . (b) Clerical amendment The table of parts for subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Part VIII. The Flat Tax . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 3. Repeal of estate and gift taxes (a) In general Subtitle B of the Internal Revenue Code of 1986 is hereby repealed. (b) Effective date The repeal made by subsection (a) shall apply to the estates of decedents dying, and gifts and generation-skipping transfers made, after December 31, 2017. (c) Cross reference See section 102 of the Internal Revenue Code of 1986 for exclusion of gifts and inheritances from gross income. 4. Supermajority required to consider revenue measure A bill, joint resolution, amendment to a bill or joint resolution, or conference report that— (1) includes an increase in the rates of tax specified in section 60A(a) or