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 2022 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 2022, 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 |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.85 | 12.96 | -0.89 | 259 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.02 | 12.99 | -1.03 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.25 | 13.02 | -1.23 | 230 | -0.00 | -0.00 | 0.00 | ||
| 2023 | 14.53 | 13.05 | -1.48 | 215 | -0.01 | -0.00 | 0.01 | ||
| 2024 | 14.80 | 13.08 | -1.72 | 199 | -0.03 | -0.00 | 0.02 | ||
| 2025 | 15.05 | 13.10 | -1.95 | 183 | -0.05 | -0.00 | 0.05 | ||
| 2026 | 15.30 | 13.13 | -2.17 | 167 | -0.07 | -0.00 | 0.07 | ||
| 2027 | 15.50 | 13.15 | -2.36 | 150 | -0.11 | -0.01 | 0.11 | ||
| 2028 | 15.70 | 13.16 | -2.54 | 133 | -0.15 | -0.01 | 0.15 | ||
| 2029 | 15.87 | 13.17 | -2.70 | 116 | -0.19 | -0.01 | 0.18 | ||
| 2030 | 16.04 | 13.18 | -2.86 | 99 | -0.22 | -0.01 | 0.21 | ||
| 2031 | 16.19 | 13.19 | -3.00 | 82 | -0.26 | -0.01 | 0.24 | ||
| 2032 | 16.32 | 13.20 | -3.12 | 64 | -0.29 | -0.02 | 0.27 | ||
| 2033 | 16.43 | 13.21 | -3.22 | 45 | -0.31 | -0.02 | 0.29 | ||
| 2034 | 16.52 | 13.22 | -3.30 | 27 | -0.33 | -0.02 | 0.31 | ||
| 2035 | 16.58 | 13.22 | -3.36 | 7 | -0.35 | -0.02 | 0.33 | ||
| 2036 | 16.63 | 13.23 | -3.40 | ---- | -0.36 | -0.02 | 0.34 | ||
| 2037 | 16.65 | 13.23 | -3.42 | ---- | -0.37 | -0.02 | 0.35 | ||
| 2038 | 16.64 | 13.23 | -3.41 | ---- | -0.38 | -0.02 | 0.36 | ||
| 2039 | 16.60 | 13.23 | -3.38 | ---- | -0.39 | -0.02 | 0.37 | ||
| 2040 | 16.56 | 13.23 | -3.33 | ---- | -0.40 | -0.02 | 0.38 | ||
| 2041 | 16.51 | 13.22 | -3.28 | ---- | -0.41 | -0.02 | 0.39 | ||
| 2042 | 16.45 | 13.22 | -3.22 | ---- | -0.42 | -0.02 | 0.39 | ||
| 2043 | 16.38 | 13.22 | -3.17 | ---- | -0.42 | -0.02 | 0.40 | ||
| 2044 | 16.33 | 13.22 | -3.11 | ---- | -0.43 | -0.02 | 0.41 | ||
| 2045 | 16.29 | 13.21 | -3.07 | ---- | -0.43 | -0.02 | 0.41 | ||
| 2046 | 16.25 | 13.21 | -3.04 | ---- | -0.43 | -0.02 | 0.41 | ||
| 2047 | 16.21 | 13.21 | -3.00 | ---- | -0.43 | -0.02 | 0.41 | ||
| 2048 | 16.18 | 13.21 | -2.97 | ---- | -0.43 | -0.02 | 0.41 | ||
| 2049 | 16.15 | 13.21 | -2.94 | ---- | -0.44 | -0.02 | 0.41 | ||
| 2050 | 16.13 | 13.21 | -2.92 | ---- | -0.44 | -0.02 | 0.41 | ||
| 2051 | 16.12 | 13.21 | -2.91 | ---- | -0.44 | -0.02 | 0.42 | ||
| 2052 | 16.12 | 13.21 | -2.91 | ---- | -0.44 | -0.02 | 0.42 | ||
| 2053 | 16.12 | 13.21 | -2.92 | ---- | -0.44 | -0.02 | 0.42 | ||
| 2054 | 16.14 | 13.21 | -2.93 | ---- | -0.45 | -0.02 | 0.42 | ||
| 2055 | 16.17 | 13.21 | -2.96 | ---- | -0.45 | -0.02 | 0.43 | ||
| 2056 | 16.20 | 13.22 | -2.99 | ---- | -0.45 | -0.02 | 0.43 | ||
| 2057 | 16.24 | 13.22 | -3.02 | ---- | -0.46 | -0.02 | 0.43 | ||
| 2058 | 16.28 | 13.22 | -3.06 | ---- | -0.46 | -0.02 | 0.44 | ||
| 2059 | 16.32 | 13.22 | -3.10 | ---- | -0.46 | -0.03 | 0.44 | ||
| 2060 | 16.36 | 13.23 | -3.14 | ---- | -0.47 | -0.03 | 0.44 | ||
| 2061 | 16.41 | 13.23 | -3.18 | ---- | -0.47 | -0.03 | 0.44 | ||
| 2062 | 16.45 | 13.23 | -3.22 | ---- | -0.47 | -0.03 | 0.44 | ||
| 2063 | 16.50 | 13.24 | -3.26 | ---- | -0.47 | -0.03 | 0.44 | ||
| 2064 | 16.55 | 13.24 | -3.31 | ---- | -0.47 | -0.03 | 0.45 | ||
| 2065 | 16.59 | 13.24 | -3.35 | ---- | -0.47 | -0.03 | 0.45 | ||
| 2066 | 16.64 | 13.25 | -3.40 | ---- | -0.47 | -0.03 | 0.45 | ||
| 2067 | 16.69 | 13.25 | -3.44 | ---- | -0.48 | -0.03 | 0.45 | ||
| 2068 | 16.74 | 13.25 | -3.49 | ---- | -0.48 | -0.03 | 0.45 | ||
| 2069 | 16.80 | 13.26 | -3.54 | ---- | -0.48 | -0.03 | 0.45 | ||
| 2070 | 16.85 | 13.26 | -3.59 | ---- | -0.48 | -0.03 | 0.45 | ||
| 2071 | 16.89 | 13.26 | -3.63 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2072 | 16.93 | 13.26 | -3.67 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2073 | 16.96 | 13.27 | -3.70 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2074 | 16.99 | 13.27 | -3.73 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2075 | 17.02 | 13.27 | -3.75 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2076 | 17.03 | 13.27 | -3.76 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2077 | 17.04 | 13.27 | -3.77 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2078 | 17.04 | 13.27 | -3.77 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2079 | 17.03 | 13.27 | -3.76 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2080 | 17.03 | 13.27 | -3.75 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2081 | 17.02 | 13.27 | -3.75 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2082 | 17.02 | 13.27 | -3.75 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2083 | 17.03 | 13.27 | -3.76 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2084 | 17.04 | 13.27 | -3.77 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2085 | 17.06 | 13.27 | -3.79 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2086 | 17.09 | 13.27 | -3.82 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2087 | 17.13 | 13.28 | -3.85 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2088 | 17.17 | 13.28 | -3.89 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2089 | 17.21 | 13.28 | -3.93 | ---- | -0.49 | -0.03 | 0.46 | ||
| 2090 | 17.26 | 13.28 | -3.97 | ---- | -0.49 | -0.03 | 0.47 | ||
| 2091 | 17.30 | 13.29 | -4.01 | ---- | -0.49 | -0.03 | 0.47 | ||
| 2092 | 17.35 | 13.29 | -4.06 | ---- | -0.49 | -0.03 | 0.47 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 16.31% | 13.82% | -2.49% | 2035 | -0.36% | -0.02% | 0.34% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.