Description of Proposed Provision:
H4: Increase the threshold for taxation of OASDI benefits to $50,000 for single filers and $100,000 for joint filers starting in 2019. Taxation of benefits revenues transferred to the Hospital Insurance (HI) Trust Fund would be the same as if the current-law computation applied.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.71 | -0.99 | 273 | 0.00 | -0.24 | -0.24 | ||
| 2020 | 13.85 | 12.72 | -1.13 | 257 | 0.00 | -0.24 | -0.24 | ||
| 2021 | 14.02 | 12.76 | -1.26 | 241 | 0.00 | -0.23 | -0.24 | ||
| 2022 | 14.26 | 12.79 | -1.47 | 225 | 0.00 | -0.23 | -0.24 | ||
| 2023 | 14.55 | 12.82 | -1.73 | 209 | 0.00 | -0.23 | -0.24 | ||
| 2024 | 14.83 | 12.85 | -1.98 | 191 | 0.00 | -0.23 | -0.23 | ||
| 2025 | 15.10 | 12.87 | -2.23 | 173 | 0.00 | -0.23 | -0.23 | ||
| 2026 | 15.37 | 12.91 | -2.47 | 155 | 0.00 | -0.23 | -0.23 | ||
| 2027 | 15.62 | 12.93 | -2.69 | 136 | 0.00 | -0.23 | -0.23 | ||
| 2028 | 15.85 | 12.95 | -2.91 | 117 | 0.00 | -0.22 | -0.22 | ||
| 2029 | 16.07 | 12.97 | -3.10 | 98 | 0.00 | -0.22 | -0.22 | ||
| 2030 | 16.27 | 12.98 | -3.28 | 79 | 0.00 | -0.21 | -0.21 | ||
| 2031 | 16.45 | 13.00 | -3.45 | 59 | 0.00 | -0.21 | -0.21 | ||
| 2032 | 16.61 | 13.02 | -3.59 | 39 | 0.00 | -0.20 | -0.20 | ||
| 2033 | 16.74 | 13.03 | -3.71 | 18 | 0.00 | -0.19 | -0.19 | ||
| 2034 | 16.85 | 13.05 | -3.80 | ---- | 0.00 | -0.19 | -0.19 | ||
| 2035 | 16.93 | 13.06 | -3.87 | ---- | 0.00 | -0.18 | -0.18 | ||
| 2036 | 16.99 | 13.07 | -3.92 | ---- | 0.00 | -0.17 | -0.17 | ||
| 2037 | 17.02 | 13.08 | -3.94 | ---- | 0.00 | -0.17 | -0.17 | ||
| 2038 | 17.02 | 13.09 | -3.93 | ---- | 0.00 | -0.16 | -0.16 | ||
| 2039 | 17.00 | 13.10 | -3.90 | ---- | 0.00 | -0.15 | -0.15 | ||
| 2040 | 16.96 | 13.10 | -3.86 | ---- | 0.00 | -0.14 | -0.14 | ||
| 2041 | 16.92 | 13.11 | -3.81 | ---- | 0.00 | -0.14 | -0.14 | ||
| 2042 | 16.86 | 13.11 | -3.75 | ---- | 0.00 | -0.13 | -0.13 | ||
| 2043 | 16.81 | 13.12 | -3.69 | ---- | 0.00 | -0.12 | -0.12 | ||
| 2044 | 16.76 | 13.12 | -3.64 | ---- | 0.00 | -0.11 | -0.12 | ||
| 2045 | 16.72 | 13.13 | -3.59 | ---- | 0.00 | -0.11 | -0.11 | ||
| 2046 | 16.68 | 13.13 | -3.55 | ---- | 0.00 | -0.10 | -0.10 | ||
| 2047 | 16.65 | 13.14 | -3.51 | ---- | 0.00 | -0.10 | -0.10 | ||
| 2048 | 16.62 | 13.14 | -3.47 | ---- | 0.00 | -0.09 | -0.09 | ||
| 2049 | 16.59 | 13.15 | -3.44 | ---- | 0.00 | -0.09 | -0.09 | ||
| 2050 | 16.57 | 13.15 | -3.42 | ---- | 0.00 | -0.08 | -0.08 | ||
| 2051 | 16.56 | 13.16 | -3.40 | ---- | 0.00 | -0.08 | -0.08 | ||
| 2052 | 16.56 | 13.16 | -3.40 | ---- | 0.00 | -0.07 | -0.07 | ||
| 2053 | 16.57 | 13.17 | -3.40 | ---- | 0.00 | -0.07 | -0.07 | ||
| 2054 | 16.59 | 13.17 | -3.42 | ---- | 0.00 | -0.06 | -0.06 | ||
| 2055 | 16.62 | 13.18 | -3.44 | ---- | 0.00 | -0.06 | -0.06 | ||
| 2056 | 16.66 | 13.18 | -3.47 | ---- | 0.00 | -0.06 | -0.06 | ||
| 2057 | 16.70 | 13.19 | -3.51 | ---- | 0.00 | -0.05 | -0.05 | ||
| 2058 | 16.74 | 13.20 | -3.54 | ---- | 0.00 | -0.05 | -0.05 | ||
| 2059 | 16.78 | 13.20 | -3.58 | ---- | 0.00 | -0.05 | -0.05 | ||
| 2060 | 16.83 | 13.21 | -3.62 | ---- | 0.00 | -0.04 | -0.04 | ||
| 2061 | 16.87 | 13.21 | -3.66 | ---- | 0.00 | -0.04 | -0.04 | ||
| 2062 | 16.92 | 13.22 | -3.70 | ---- | 0.00 | -0.04 | -0.04 | ||
| 2063 | 16.97 | 13.23 | -3.74 | ---- | 0.00 | -0.04 | -0.04 | ||
| 2064 | 17.02 | 13.23 | -3.79 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2065 | 17.07 | 13.24 | -3.83 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2066 | 17.12 | 13.24 | -3.88 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2067 | 17.17 | 13.25 | -3.92 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2068 | 17.22 | 13.25 | -3.97 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2069 | 17.27 | 13.26 | -4.02 | ---- | 0.00 | -0.03 | -0.03 | ||
| 2070 | 17.33 | 13.26 | -4.07 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2071 | 17.37 | 13.26 | -4.11 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2072 | 17.41 | 13.27 | -4.14 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2073 | 17.45 | 13.27 | -4.18 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2074 | 17.48 | 13.28 | -4.20 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2075 | 17.50 | 13.28 | -4.22 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2076 | 17.52 | 13.28 | -4.24 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2077 | 17.52 | 13.28 | -4.24 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2078 | 17.52 | 13.28 | -4.24 | ---- | 0.00 | -0.02 | -0.02 | ||
| 2079 | 17.52 | 13.28 | -4.23 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2080 | 17.51 | 13.28 | -4.23 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2081 | 17.51 | 13.28 | -4.22 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2082 | 17.51 | 13.29 | -4.22 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2083 | 17.51 | 13.29 | -4.23 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2084 | 17.53 | 13.29 | -4.24 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2085 | 17.55 | 13.29 | -4.26 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2086 | 17.58 | 13.29 | -4.29 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2087 | 17.62 | 13.29 | -4.32 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2088 | 17.66 | 13.30 | -4.36 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2089 | 17.70 | 13.30 | -4.40 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2090 | 17.75 | 13.30 | -4.44 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2091 | 17.80 | 13.31 | -4.49 | ---- | 0.00 | -0.01 | -0.01 | ||
| 2092 | 17.84 | 13.31 | -4.53 | ---- | 0.00 | -0.01 | -0.01 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 16.67% | 13.73% | -2.93% | 2033 | 0.00% | -0.10% | -0.11% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.