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.
Estimates based on the intermediate assumptions of the 2017 Trustees Report
| Summary Measures | |||||||
|---|---|---|---|---|---|---|---|
| Current law [percent of payroll] |
Change from current law [percent of payroll] |
Shortfall eliminated | |||||
| Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
||
| -2.83 | -4.48 | -0.18 | -0.01 | -6% | -0% | ||
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