Description of Proposed Provision:
H3: Starting in 2021, 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.

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
201913.9112.85-1.06
273
0.000.000.00
202013.9412.87-1.07
260
0.000.000.00
202114.0913.07-1.01
245
0.000.180.18
202214.2313.09-1.14
231
-0.000.170.17
202314.4013.09-1.30
216
-0.000.160.16
202414.5913.11-1.47
200
-0.000.140.14
202514.7813.11-1.67
184
-0.000.130.13
202614.9913.13-1.86
168
-0.000.010.02
202715.1913.13-2.06
152
0.00-0.00-0.00
202815.4313.15-2.28
135
0.00-0.02-0.02
202915.6313.16-2.46
118
0.00-0.03-0.03
203015.8113.17-2.63
101
0.00-0.03-0.03
203115.9713.18-2.79
84
0.00-0.04-0.04
203216.1113.19-2.92
67
0.00-0.04-0.04
203316.2313.19-3.04
49
0.00-0.04-0.04
203416.3313.20-3.13
31
0.00-0.05-0.05
203516.4013.20-3.20
13
0.00-0.05-0.05
203616.4613.21-3.25
----
0.00-0.05-0.05
203716.5213.21-3.31
----
0.00-0.05-0.05
203816.5713.21-3.35
----
0.00-0.06-0.06
203916.6013.21-3.39
----
0.00-0.06-0.06
204016.6213.21-3.40
----
0.00-0.06-0.06
204116.6113.21-3.40
----
0.00-0.06-0.06
204216.5913.21-3.38
----
0.00-0.06-0.06
204316.5613.21-3.35
----
0.00-0.06-0.06
204416.5213.21-3.31
----
0.00-0.06-0.06
204516.4913.21-3.28
----
0.00-0.06-0.06
204616.4513.20-3.25
----
0.00-0.07-0.07
204716.4313.20-3.22
----
0.00-0.07-0.07
204816.4013.20-3.20
----
0.00-0.07-0.07
204916.3813.20-3.18
----
0.00-0.07-0.07
205016.3713.20-3.17
----
0.00-0.07-0.07
205116.3613.20-3.16
----
0.00-0.07-0.07
205216.3613.20-3.16
----
0.00-0.07-0.07
205316.3713.20-3.17
----
0.00-0.07-0.07
205416.3913.20-3.18
----
0.00-0.07-0.07
205516.4113.20-3.21
----
0.00-0.07-0.08
205616.4413.20-3.24
----
0.00-0.08-0.08
205716.4813.21-3.27
----
0.00-0.08-0.08
205816.5313.21-3.32
----
0.00-0.08-0.08
205916.5813.21-3.36
----
0.00-0.08-0.08
206016.6313.21-3.41
----
0.00-0.08-0.08
206116.6813.22-3.46
----
0.00-0.08-0.08
206216.7313.22-3.51
----
0.00-0.08-0.08
206316.7913.22-3.56
----
0.00-0.09-0.09
206416.8413.23-3.62
----
0.00-0.09-0.09
206516.9013.23-3.67
----
0.00-0.09-0.09
206616.9513.23-3.72
----
0.00-0.09-0.09
206717.0113.24-3.78
----
0.00-0.09-0.09
206817.0713.24-3.84
----
0.00-0.09-0.09
206917.1313.24-3.89
----
0.00-0.09-0.09
207017.2013.24-3.95
----
0.00-0.09-0.09
207117.2513.25-4.00
----
0.00-0.09-0.10
207217.3013.25-4.05
----
0.00-0.10-0.10
207317.3513.25-4.10
----
0.00-0.10-0.10
207417.3913.25-4.14
----
0.00-0.10-0.10
207517.4313.26-4.17
----
0.00-0.10-0.10
207617.4613.26-4.20
----
0.00-0.10-0.10
207717.4813.26-4.22
----
0.00-0.10-0.10
207817.4813.26-4.22
----
0.00-0.10-0.10
207917.4813.26-4.22
----
0.00-0.10-0.10
208017.4613.26-4.20
----
0.00-0.10-0.10
208117.4413.26-4.19
----
0.00-0.10-0.10
208217.4213.26-4.17
----
0.00-0.10-0.10
208317.4013.26-4.15
----
0.00-0.10-0.10
208417.3813.25-4.12
----
0.00-0.10-0.10
208517.3613.25-4.10
----
0.00-0.10-0.10
208617.3413.25-4.09
----
0.00-0.10-0.10
208717.3313.25-4.08
----
0.00-0.10-0.10
208817.3313.25-4.08
----
0.00-0.10-0.10
208917.3413.25-4.08
----
0.00-0.10-0.10
209017.3613.25-4.10
----
0.00-0.10-0.10
209117.3913.26-4.13
----
0.00-0.10-0.10
209217.4313.26-4.17
----
0.00-0.10-0.10
209317.4713.26-4.21
----
0.00-0.10-0.10
209417.5213.26-4.26
----
0.00-0.10-0.10


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
2019-2093 16.60% 13.76% -2.84%
2035
0.00% -0.05% -0.05%

1 Under current law, the year of Trust Fund reserve depletion is 2035.
Based on Intermediate Assumptions of the 2019 Trustees Report.