Graduated corporate tax rate to support small businesses

(a) In general Section 11(b) of the Internal Revenue Code of 1986 is amended to read as follows: (b) Amount of tax (1) In general Except as provided by paragraph (2), the amount of the tax imposed by subsection (a) shall be 21 percent of taxable income. (2) Small businesses In the case of a corporation with taxable income that does not exceed $5,000,000 in the taxable year, the amount of the tax imposed by subsection (a) shall be the sum of— (A) 18 percent of so much of the taxable income as does not exceed $400,000, and (B) 21 percent of so much of the taxable income as equals or exceeds $400,000.. (b) Effective date The amendment made by this section shall apply to taxable years ending after the date of the enactment of this section.