Proposed Provision: H3. Starting in 2023, 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.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Current Law Provision Current Law Provision
202112.312.314.114.1
202212.912.914.314.3
202312.913.114.414.4
202412.913.114.614.6
202513.013.114.914.9
202613.113.115.115.1
202713.113.115.415.4
202813.113.215.615.6
202913.213.215.915.9
203013.213.216.116.1
203113.213.216.316.3
203213.213.216.416.4
203313.213.216.616.6
203413.213.216.716.7
203513.213.216.716.7
203613.313.216.816.8
203713.313.216.916.9
203813.313.216.916.9
203913.313.217.017.0
204013.313.217.017.0
204113.313.217.017.0
204213.313.217.017.0
204313.313.217.017.0
204413.313.217.017.0
204513.313.217.017.0
204613.313.217.117.1
204713.313.217.117.1
204813.313.217.117.1
204913.313.217.117.1
205013.313.217.117.1
205113.313.217.217.2
205213.313.217.217.2
205313.313.217.217.2
205413.313.217.317.3
205513.313.217.317.3
205613.313.317.317.3
205713.313.317.417.4
205813.313.317.417.4
205913.313.317.517.5
206013.313.317.517.5
206113.313.317.617.6
206213.313.317.717.7
206313.313.317.717.7
206413.313.317.817.8
206513.313.317.817.8
206613.413.317.917.9
206713.413.317.917.9
206813.413.318.018.0
206913.413.318.018.0
207013.413.318.118.1
207113.413.318.118.1
207213.413.318.218.2
207313.413.318.218.2
207413.413.318.318.3
207513.413.318.318.3
207613.413.318.318.3
207713.413.318.418.4
207813.413.318.418.4
207913.413.318.418.4
208013.413.318.418.4
208113.413.318.318.3
208213.413.318.318.3
208313.413.318.318.3
208413.413.318.218.2
208513.413.318.118.1
208613.413.318.118.1
208713.413.318.018.0
208813.413.317.917.9
208913.413.317.917.9
209013.413.317.817.8
209113.413.317.817.8
209213.413.317.717.7
209313.413.317.717.7
209413.413.317.717.7
209513.413.317.717.7
209613.413.317.717.7
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