Description of Proposed Provision:
B7.7: Reduce individual Social Security benefits if modified adjusted gross income, or MAGI (AGI less taxable Social Security benefits plus nontaxable interest income) is above $60,000 for single taxpayers or $120,000 for taxpayers filing jointly. This provision is effective for individuals newly eligible for benefits in 2023 or later. The percentage reduction increases linearly up to 50 percent for single/joint filers with MAGI of $180,000/$360,000 or above. Index the MAGI thresholds for years after 2023, based on changes in the SSA average wage index.

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
202314.6212.96-1.65
206
-0.00-0.000.00
202414.7912.99-1.80
188
-0.01-0.000.01
202514.9613.01-1.95
171
-0.02-0.000.02
202615.1213.13-1.99
155
-0.04-0.000.04
202715.3013.15-2.15
138
-0.07-0.000.06
202815.4813.17-2.31
122
-0.11-0.010.10
202915.6413.18-2.46
106
-0.15-0.010.14
203015.8013.19-2.60
90
-0.19-0.010.18
203115.9313.20-2.73
73
-0.23-0.010.22
203216.0513.21-2.83
57
-0.27-0.010.26
203316.1513.22-2.92
40
-0.31-0.020.29
203416.2313.23-3.00
23
-0.34-0.020.32
203516.2913.23-3.05
5
-0.37-0.020.34
203616.3413.24-3.10
----
-0.38-0.020.36
203716.3913.24-3.15
----
-0.39-0.020.37
203816.4213.25-3.17
----
-0.41-0.020.38
203916.4113.25-3.16
----
-0.42-0.020.40
204016.4013.25-3.15
----
-0.43-0.020.40
204116.3713.25-3.12
----
-0.44-0.020.41
204216.3313.25-3.08
----
-0.44-0.020.42
204316.2813.25-3.04
----
-0.45-0.030.42
204416.2413.24-2.99
----
-0.46-0.030.43
204516.2013.24-2.95
----
-0.46-0.030.44
204616.1613.24-2.92
----
-0.47-0.030.44
204716.1313.24-2.89
----
-0.47-0.030.44
204816.1113.24-2.87
----
-0.47-0.030.44
204916.0813.24-2.84
----
-0.47-0.030.44
205016.0713.24-2.83
----
-0.47-0.030.45
205116.0613.24-2.82
----
-0.47-0.030.45
205216.0613.24-2.81
----
-0.48-0.030.45
205316.0613.24-2.82
----
-0.48-0.030.45
205416.0813.25-2.83
----
-0.48-0.030.46
205516.1013.25-2.85
----
-0.49-0.030.46
205616.1313.25-2.88
----
-0.49-0.030.46
205716.1713.25-2.92
----
-0.49-0.030.47
205816.2113.26-2.96
----
-0.50-0.030.47
205916.2613.26-3.00
----
-0.50-0.030.47
206016.3013.27-3.04
----
-0.51-0.030.48
206116.3513.27-3.08
----
-0.51-0.030.48
206216.4013.27-3.13
----
-0.51-0.030.48
206316.4513.28-3.17
----
-0.51-0.030.48
206416.5013.28-3.22
----
-0.51-0.030.48
206516.5513.29-3.27
----
-0.51-0.030.49
206616.6113.29-3.32
----
-0.52-0.030.49
206716.6613.29-3.37
----
-0.52-0.030.49
206816.7213.30-3.43
----
-0.52-0.030.49
206916.7813.30-3.48
----
-0.52-0.030.49
207016.8413.31-3.53
----
-0.52-0.030.49
207116.8913.31-3.59
----
-0.53-0.030.50
207216.9413.31-3.63
----
-0.53-0.030.50
207316.9813.32-3.67
----
-0.53-0.030.50
207417.0213.32-3.70
----
-0.53-0.030.50
207517.0513.32-3.73
----
-0.53-0.030.50
207617.0813.32-3.75
----
-0.53-0.030.50
207717.0913.32-3.77
----
-0.53-0.030.50
207817.0913.33-3.77
----
-0.53-0.030.50
207917.0913.33-3.76
----
-0.53-0.030.50
208017.0713.32-3.75
----
-0.53-0.030.50
208117.0613.32-3.73
----
-0.53-0.030.50
208217.0413.32-3.72
----
-0.53-0.030.50
208317.0213.32-3.70
----
-0.53-0.030.50
208417.0113.32-3.69
----
-0.53-0.030.50
208517.0013.32-3.68
----
-0.53-0.030.50
208617.0013.32-3.68
----
-0.53-0.030.50
208717.0013.32-3.68
----
-0.53-0.030.50
208817.0213.32-3.70
----
-0.53-0.030.50
208917.0413.32-3.72
----
-0.53-0.030.50
209017.0713.32-3.74
----
-0.53-0.030.50
209117.1013.33-3.78
----
-0.53-0.030.50
209217.1413.33-3.81
----
-0.53-0.030.50
209317.1913.33-3.86
----
-0.54-0.030.50


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 16.30% 13.82% -2.48%
2035
-0.39% -0.02% 0.36%

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