Proposed Provision: H3. Starting in 2019, 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 Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2017298298
2018287287
2019273273
2020259259
2021245246
2022230232
2023215217
2024199201
2025182185
2026165168
2027148151
2028130133
2029112115
20309497
20317578
20325659
20333740
20341619
2035-4-2
2036-26-23
2037-47-45
2038-70-67
2039-92-90
2040-115-113
2041-138-136
2042-161-159
2043-184-182
2044-207-205
2045-230-228
2046-253-252
2047-276-275
2048-300-298
2049-323-322
2050-346-345
2051-370-369
2052-393-392
2053-417-416
2054-440-439
2055-464-463
2056-487-487
2057-511-511
2058-536-536
2059-560-560
2060-585-586
2061-611-611
2062-637-638
2063-663-664
2064-690-691
2065-717-718
2066-745-746
2067-772-774
2068-801-803
2069-829-831
2070-858-861
2071-888-891
2072-918-921
2073-949-953
2074-981-985
2075-1014-1017
2076-1047-1051
2077-1082-1086
2078-1117-1122
2079-1153-1158
2080-1190-1195
2081-1227-1232
2082-1264-1269
2083-1300-1306
2084-1337-1343
2085-1374-1380
2086-1410-1417
2087-1446-1453
2088-1483-1490
2089-1520-1527
2090-1557-1565
2091-1595-1603
2092-1633-1641
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