Description of Proposed Provision:
H7: Replace the current-law thresholds for federal income taxation of OASDI benefits with a single set of thresholds at $50,000 for single filers and $100,000 for joint filers for taxation of up to 85 percent of OASDI benefits, effective for tax year 2019. These thresholds would be fixed and not indexed to price inflation or average wage increase. Reallocate a portion of revenue from taxation of OASDI benefits to the HI Trust Fund such that the HI Trust Fund would be in the same position as if the current-law computation (in the absence of this provision) applied. The net amount of revenue from taxing OASDI benefits, after the allocation to HI, would be allocated to the combined Social Security Trust Fund.

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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.000.00
201913.7012.55-1.15
273
0.00-0.39-0.39
202013.8612.57-1.29
256
0.00-0.39-0.39
202114.0212.60-1.42
239
0.00-0.39-0.39
202214.2612.63-1.62
222
0.00-0.39-0.39
202314.5512.66-1.89
205
0.00-0.39-0.39
202414.8312.70-2.13
186
0.00-0.39-0.39
202515.1012.72-2.38
168
0.00-0.39-0.39
202615.3712.75-2.62
148
0.00-0.38-0.39
202715.6212.77-2.85
129
0.00-0.38-0.38
202815.8512.79-3.06
109
0.00-0.37-0.38
202916.0712.81-3.25
89
0.00-0.37-0.37
203016.2712.84-3.43
69
0.00-0.36-0.36
203116.4512.86-3.59
48
0.00-0.35-0.35
203216.6112.88-3.73
27
0.00-0.34-0.34
203316.7412.90-3.85
5
0.00-0.33-0.33
203416.8512.91-3.94
----
0.00-0.32-0.32
203516.9312.93-4.00
----
0.00-0.31-0.31
203616.9912.95-4.04
----
0.00-0.30-0.30
203717.0212.96-4.06
----
0.00-0.29-0.29
203817.0212.98-4.05
----
0.00-0.27-0.27
203917.0012.99-4.01
----
0.00-0.26-0.26
204016.9613.00-3.96
----
0.00-0.25-0.25
204116.9213.01-3.91
----
0.00-0.24-0.24
204216.8613.02-3.84
----
0.00-0.22-0.22
204316.8113.03-3.78
----
0.00-0.21-0.21
204416.7613.04-3.72
----
0.00-0.20-0.20
204516.7213.05-3.67
----
0.00-0.19-0.19
204616.6813.06-3.62
----
0.00-0.18-0.18
204716.6513.06-3.58
----
0.00-0.17-0.17
204816.6213.07-3.54
----
0.00-0.16-0.16
204916.5913.08-3.51
----
0.00-0.15-0.15
205016.5713.09-3.48
----
0.00-0.14-0.14
205116.5613.10-3.46
----
0.00-0.13-0.13
205216.5613.11-3.45
----
0.00-0.13-0.13
205316.5713.12-3.45
----
0.00-0.12-0.12
205416.5913.12-3.47
----
0.00-0.11-0.11
205516.6213.13-3.49
----
0.00-0.10-0.10
205616.6613.14-3.51
----
0.00-0.10-0.10
205716.7013.15-3.55
----
0.00-0.09-0.09
205816.7413.16-3.58
----
0.00-0.09-0.09
205916.7813.17-3.62
----
0.00-0.08-0.08
206016.8313.18-3.65
----
0.00-0.08-0.08
206116.8713.18-3.69
----
0.00-0.07-0.07
206216.9213.19-3.73
----
0.00-0.07-0.07
206316.9713.20-3.77
----
0.00-0.06-0.06
206417.0213.20-3.81
----
0.00-0.06-0.06
206517.0713.21-3.86
----
0.00-0.06-0.06
206617.1213.22-3.90
----
0.00-0.05-0.05
206717.1713.22-3.95
----
0.00-0.05-0.05
206817.2213.23-3.99
----
0.00-0.05-0.05
206917.2713.24-4.04
----
0.00-0.05-0.05
207017.3313.24-4.08
----
0.00-0.04-0.04
207117.3713.25-4.13
----
0.00-0.04-0.04
207217.4113.25-4.16
----
0.00-0.04-0.04
207317.4513.26-4.19
----
0.00-0.04-0.04
207417.4813.26-4.22
----
0.00-0.03-0.03
207517.5013.26-4.24
----
0.00-0.03-0.03
207617.5213.27-4.25
----
0.00-0.03-0.03
207717.5213.27-4.25
----
0.00-0.03-0.03
207817.5213.27-4.25
----
0.00-0.03-0.03
207917.5213.27-4.24
----
0.00-0.03-0.03
208017.5113.27-4.24
----
0.00-0.02-0.02
208117.5113.27-4.23
----
0.00-0.02-0.02
208217.5113.28-4.23
----
0.00-0.02-0.02
208317.5113.28-4.24
----
0.00-0.02-0.02
208417.5313.28-4.25
----
0.00-0.02-0.02
208517.5513.28-4.27
----
0.00-0.02-0.02
208617.5813.28-4.30
----
0.00-0.02-0.02
208717.6213.29-4.33
----
0.00-0.02-0.02
208817.6613.29-4.37
----
0.00-0.02-0.02
208917.7013.29-4.41
----
0.00-0.01-0.01
209017.7513.30-4.45
----
0.00-0.01-0.01
209117.8013.30-4.49
----
0.00-0.01-0.01
209217.8413.30-4.54
----
0.00-0.01-0.01


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2017-2091 16.67% 13.66% -3.01%
2033
0.00% -0.18% -0.18%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.