Description of Proposed Provision:
H5: Beginning in 2025, for single/head-of-household/married-filing-separate taxpayers with MAGI of $250,000 or more and joint filers with MAGI of $500,000 or more, include up to the remaining 15 percent of Social Security benefits in taxable income (increased from up to 85 percent of benefits taxable under current law). In subsequent years, update these thresholds for growth in wages (AWI). Revenue from this provision would be credited to the Social Security trust funds. Current law taxation of up to 85 percent of Social Security benefits would remain unchanged.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1212.89-1.23
256
0.000.000.00
202114.2712.92-1.35
239
0.000.000.00
202214.4412.95-1.49
223
0.000.000.00
202314.6212.97-1.66
206
0.000.000.00
202414.8012.99-1.81
188
0.000.000.00
202514.9813.01-1.97
171
0.000.010.01
202615.1613.14-2.02
154
-0.000.010.01
202715.3613.16-2.20
137
-0.000.010.01
202815.5813.18-2.40
121
-0.000.010.01
202915.7913.20-2.60
104
-0.000.010.01
203015.9813.21-2.77
87
-0.000.010.01
203116.1613.22-2.94
69
-0.000.010.01
203216.3213.23-3.08
52
-0.000.010.01
203316.4513.25-3.21
33
-0.000.010.01
203416.5613.25-3.31
14
-0.000.010.01
203516.6513.26-3.39
----
-0.000.010.01
203616.7213.27-3.45
----
-0.000.010.01
203716.7813.27-3.51
----
-0.000.010.01
203816.8213.28-3.54
----
-0.000.010.01
203916.8313.28-3.55
----
-0.000.010.01
204016.8313.28-3.55
----
-0.000.010.01
204116.8113.28-3.53
----
-0.000.010.01
204216.7813.28-3.50
----
-0.000.010.01
204316.7313.28-3.46
----
-0.000.010.01
204416.6913.28-3.42
----
-0.000.010.01
204516.6613.28-3.38
----
-0.000.010.01
204616.6313.28-3.35
----
-0.000.010.01
204716.6013.28-3.33
----
-0.000.010.01
204816.5813.28-3.30
----
-0.000.010.01
204916.5513.27-3.28
----
-0.000.010.01
205016.5413.28-3.27
----
-0.000.010.01
205116.5313.28-3.26
----
-0.000.010.01
205216.5313.28-3.26
----
-0.000.010.01
205316.5413.28-3.27
----
-0.000.010.01
205416.5613.28-3.28
----
-0.000.010.01
205516.5913.28-3.31
----
-0.000.010.01
205616.6213.29-3.34
----
-0.000.010.01
205716.6713.29-3.37
----
-0.000.010.01
205816.7113.29-3.42
----
-0.000.010.01
205916.7613.30-3.46
----
-0.000.010.01
206016.8113.30-3.51
----
-0.000.010.01
206116.8613.31-3.55
----
-0.000.010.01
206216.9113.31-3.60
----
-0.000.010.01
206316.9613.31-3.65
----
-0.000.010.01
206417.0113.32-3.70
----
-0.000.010.01
206517.0713.32-3.75
----
-0.000.010.01
206617.1313.33-3.80
----
-0.000.010.01
206717.1813.33-3.85
----
-0.000.010.01
206817.2413.33-3.91
----
-0.000.010.01
206917.3013.34-3.96
----
-0.000.010.01
207017.3613.34-4.02
----
-0.000.010.01
207117.4213.35-4.07
----
-0.000.010.01
207217.4713.35-4.12
----
-0.000.010.01
207317.5113.35-4.16
----
-0.000.010.01
207417.5513.36-4.20
----
-0.000.010.01
207517.5913.36-4.23
----
-0.000.010.01
207617.6113.36-4.25
----
-0.000.010.01
207717.6213.36-4.26
----
-0.000.010.01
207817.6313.36-4.26
----
-0.000.010.01
207917.6213.36-4.25
----
-0.000.010.01
208017.6113.36-4.24
----
-0.000.010.01
208117.5913.36-4.23
----
-0.000.010.01
208217.5713.36-4.21
----
-0.000.010.01
208317.5513.36-4.19
----
-0.000.010.01
208417.5413.36-4.18
----
-0.000.010.01
208517.5313.36-4.17
----
-0.000.010.01
208617.5313.36-4.17
----
-0.000.010.01
208717.5313.36-4.17
----
-0.000.010.01
208817.5513.36-4.19
----
-0.000.010.01
208917.5713.36-4.21
----
-0.000.010.01
209017.6013.36-4.24
----
-0.000.010.01
209117.6413.37-4.27
----
-0.000.010.01
209217.6813.37-4.31
----
-0.000.010.01
209317.7213.37-4.35
----
-0.000.010.01


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
2018-2092 16.69% 13.85% -2.84%
2034
-0.00% 0.01% 0.01%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.