Amends subsection (d) of section 731 by inserting additional text after the existing text of that subsection.

Amends section 741 by inserting additional text before the period at the end of the section.

Adds a new section 710 to subtitle A, chapter 1 (and adds a corresponding new item to the table of sections for part I of subchapter K of chapter 1).

Strikes section 1061 from Part IV of subchapter O of chapter 1 and removes the corresponding item from the table of sections for that part.

Amends 26 U.S.C. 4501(a) by increasing the excise tax rate on repurchases of corporate stock from 1 percent to 1.5 percent.

Adds a new paragraph (3) to subsection (f) of 26 U.S.C. 164 that, for individuals with adjusted gross income under $400,000, changes the application of paragraph (1) by substituting 'one-half of the taxes imposed' for 'three quarters of the taxes imposed'.

Amends subsection (c) by redesignating existing paragraph (4) as paragraph (5) and inserting a new paragraph (4) that prescribes special rules for partnership interests transferred in connection with the provision of services, including a rule for determining fair market value as the amount a partner would receive on a hypothetical liquidation and treating the recipient as having made the subsection (b)(1) election unless the recipient affirmatively elects otherwise; provides that the election is made under rules similar to subsection (b)(2).

Amends subsection (b) of 26 U.S.C. 11 to create a graduated corporate tax rate: retains a 21% rate generally but provides a lower 18% rate on the first $400,000 of taxable income for corporations with taxable income not exceeding $5,000,000, with the remainder taxed at 21%.