; table of contents. Title I—Tax reduction and simplification Sec. 101. Individual income tax. Sec. 102. Tax on business activities. Sec. 103. Simplification of rules relating to qualified retirement plans. Sec. 104. Repeal of alternative minimum tax. Sec. 105. Repeal of credits. Sec. 106. Repeal of estate and gift taxes and obsolete income tax provisions. Sec. 107. Effective date. Title II—Supermajority required for tax changes Sec. 201. Supermajority required. I Tax reduction and simplification 101. Individual income tax (a) In general Section 1 of the Internal Revenue Code of 1986 is amended to read as follows: 1. Tax imposed There is hereby imposed on the taxable income of every individual a tax equal to 17 percent of the taxable income of such individual for such taxable year. . (b) Taxable income Section 63 of such Code is amended to read as follows: 63. Taxable income (a) In general For purposes of this subtitle, the term taxable income means the excess of— (1) the sum of— (A) wages (as defined in section 3121(a) without regard to paragraph (1) thereof) which are paid in cash and which are received during the taxable year for services performed in the United States, (B) retirement distributions which are includible in gross income for such taxable year, plus (C) amounts received under any law of the United States or of any State which is in the nature of unemployment compensation, over (2) the standard deduction. (b) Standard deduction (1) In general For purposes of this subtitle, the term standard deduction means the sum of— (A) the basic standard deduction, plus (B) the additional standard deduction. (2) Basic standard deduction For purposes of paragraph (1), the basic standard deduction is— (A) $29,190 in the case of— (i) a joint return, or (ii) a surviving spouse (as defined in section 2(a)), (B) $18,630 in the case of a head of household (as defined in section 2(b)), and (C) $14,590 in the case of an individual— (i) who is not married and who is not a surviving spouse or head of household, or (ii) who