1. Reduction in tax rates (a) Individual tax rates (1) In general (A) Reduction in rate for initial bracket amount Clause (i) of section 1(i)(1)(A) of the Internal Revenue Code of 1986 is amended by inserting (8 percent for taxable years beginning after December 31, 2017) after 10 percent . (B) Reduction in rate for 15-, 25-, 28-, and 33-percent rate brackets Paragraph (2) of section 1(i) of such Code is amended to read as follows: (2) Reduction in rates The tables under subsections (a), (b), (c), (d), and (e) shall be applied— (A) by substituting 13% for 15% each place it appears, (B) by substituting 23% for 28% each place it appears, (C) by substituting 26% for 31% each place it appears, and (D) by substituting 31% for 36% each place it appears. . (C) Reduction in rate for highest rate brackets Subparagraph (A) of section 1(i)(3) of such Code is amended— (i) by inserting (33 percent for taxable years beginning after December 31, 2017) after 35 percent in clause (i), and (ii) by inserting (37.6 percent for taxable years beginning after December 31, 2017) after 39.6 percent in clause (ii). (D) Conforming amendments (i) Subparagraph (B) of section 1(g)(7) of the Internal Revenue Code of 1986 is amended by striking 10 percent and inserting 8 percent . (ii) Paragraph (1) of section 1(h) of such Code is amended— (I) by striking 25 percent in subparagraph (A)(ii)(I) and inserting 23 percent , (II) by striking 25 percent in subparagraph (B)(i) and inserting 23 percent , and (III) by striking 39.6 percent in subparagraph (C)(ii)(I) and inserting 37.6 percent . (iii) Section 3402(p)(2) of such Code is amended by striking 10 percent and inserting 8 percent . (2) Capital gains rates (A) In general Paragraph (1) of section 1(h) of the Internal Revenue Code of 1986 is amended— (i) by striking 15 percent in subparagraph (C) and inserting 13 percent , (ii) by striking 20 percent in subparagraph (D) and inserting 18 percent , (iii) by striking 25 percent in subparagraph (E) and inserting 23 percent , and (iv) by striking 28