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| Solvency Provisions |
Provisions Affecting Taxation of Benefits |
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| Present law taxation of Social Security benefits |
These provisions revise the current rules for subjecting Social Security benefits to personal income tax. We provide a summary list of all options in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2013 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions. |
| Number | Table and graph selection |
|---|---|
| H1 |
Starting in 2014, tax Social Security benefits in a manner similar to
private pension income. Phase out the lower-income thresholds during
2014-2023.
Summary measures and graphs (PDF version) |
| H2 |
Starting in 2014, tax Social Security benefits in a manner similar to
private pension income. Phase out the lower-income thresholds during
2014-2033.
Summary measures and graphs (PDF version) |
| H3 |
Tax Reform for Individuals: Starting in 2015, 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 a
non-refundable credit of 7.5 percent. Base revenue to OASDHI on the
net marginal rates of 7.5 and 19.5 percent, with 40 percent of revenue
dedicated to HI.
Summary measures and graphs (PDF version) |
| H4 |
Increase the threshold for taxation of OASDI benefits to $50,000 for
single filers and $100,000 for joint filers starting in 2015. Taxation
of benefits revenues transferred to the Hospital Insurance (HI) Trust
Fund would be the same as if the current-law computation applied.
Summary measures and graphs (PDF version) |
Above provisions
Summary measures |
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