Proposed Provision: H3. Starting in 2018, modify personal income tax by: (a) establishing two-brackets with marginal rates of 15 and 27 percent separated at $51,000 (CPI indexed); (b) creating a non-refundable credit for low-income tax filers age 65 and older; and (c) treating capital gains as regular income. Tax all Social Security benefits at the applicable marginal rate (15 or 27 percent) less 7.5 percent, with 60 percent of this revenue going to OASDI and 40 percent going to HI.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2016303303
2017293293
2018277277
2019262262
2020246248
2021231234
2022216218
2023200203
2024183186
2025165169
2026149152
2027132136
2028115119
202998102
20308185
20316468
20324650
20332731
2034813
2035-11-7
2036-30-26
2037-50-46
2038-71-67
2039-91-87
2040-112-108
2041-133-130
2042-154-151
2043-176-172
2044-197-194
2045-218-215
2046-240-237
2047-262-259
2048-283-281
2049-305-303
2050-327-325
2051-349-347
2052-371-369
2053-393-391
2054-415-413
2055-437-436
2056-460-459
2057-482-482
2058-506-505
2059-529-529
2060-553-553
2061-578-578
2062-603-603
2063-628-629
2064-654-655
2065-680-681
2066-706-708
2067-733-735
2068-760-763
2069-788-791
2070-816-819
2071-845-848
2072-874-878
2073-905-909
2074-935-940
2075-967-972
2076-1000-1005
2077-1033-1039
2078-1068-1074
2079-1102-1109
2080-1138-1144
2081-1173-1180
2082-1208-1216
2083-1243-1252
2084-1279-1287
2085-1314-1323
2086-1349-1358
2087-1384-1394
2088-1419-1430
2089-1455-1466
2090-1491-1502
2091-1528-1540
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