such Code is amended by striking Over $200,000 and all that follows and inserting the following: Over $200,000 but not over $235,350 $45,689.50, plus 35% of the excess over $200,000. Over $235,350 $58,062.50, plus 39.6% of the excess over $235,350. . (b) Inflation adjustments to 39.6 percent rate (1) In general Section 1(j)(3)(A) of the Internal Revenue Code of 1986 is amended by inserting (before January 1, 2020, in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies) after January 1, 2019 . (2) Adjustment rules Section 1(j)(3)(B) of such Code is amended— (A) in the matter preceding clause (i), by inserting (December 31, 2019, in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies) after December 31, 2018 , (B) in clause (i), by inserting except as provided in clause (iv), before subsection (f)(3) shall , and (C) by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and , and by adding at the end the following new clause: (iv) in the case of so much of such tables as relates to amounts to which the 39.6 percent rate applies, subsection (f)(3) shall be applied by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018.