Description of Proposed Provision:
H2: Starting in 2018, tax Social Security benefits in a manner similar to private pension income. Phase out the lower-income thresholds during 2018-2037.
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 | 13.03 | -0.46 | 287 | 0.00 | 0.10 | 0.10 | ||
| 2019 | 13.70 | 13.07 | -0.63 | 274 | -0.00 | 0.12 | 0.12 | ||
| 2020 | 13.85 | 13.10 | -0.75 | 260 | -0.00 | 0.14 | 0.14 | ||
| 2021 | 14.02 | 13.15 | -0.87 | 247 | -0.00 | 0.16 | 0.16 | ||
| 2022 | 14.25 | 13.20 | -1.06 | 234 | -0.00 | 0.17 | 0.17 | ||
| 2023 | 14.54 | 13.24 | -1.30 | 219 | -0.00 | 0.19 | 0.19 | ||
| 2024 | 14.82 | 13.29 | -1.54 | 205 | -0.00 | 0.21 | 0.21 | ||
| 2025 | 15.10 | 13.32 | -1.78 | 189 | -0.00 | 0.22 | 0.22 | ||
| 2026 | 15.37 | 13.37 | -2.00 | 173 | -0.00 | 0.23 | 0.23 | ||
| 2027 | 15.62 | 13.39 | -2.22 | 157 | -0.00 | 0.24 | 0.24 | ||
| 2028 | 15.85 | 13.41 | -2.44 | 141 | -0.00 | 0.25 | 0.25 | ||
| 2029 | 16.06 | 13.43 | -2.63 | 124 | -0.00 | 0.25 | 0.25 | ||
| 2030 | 16.26 | 13.45 | -2.81 | 108 | -0.00 | 0.26 | 0.26 | ||
| 2031 | 16.45 | 13.47 | -2.98 | 91 | -0.00 | 0.26 | 0.26 | ||
| 2032 | 16.60 | 13.48 | -3.13 | 73 | -0.00 | 0.26 | 0.26 | ||
| 2033 | 16.74 | 13.49 | -3.25 | 55 | -0.00 | 0.26 | 0.26 | ||
| 2034 | 16.85 | 13.49 | -3.35 | 36 | -0.00 | 0.26 | 0.26 | ||
| 2035 | 16.93 | 13.50 | -3.43 | 17 | -0.00 | 0.26 | 0.26 | ||
| 2036 | 16.99 | 13.50 | -3.49 | ---- | -0.00 | 0.25 | 0.26 | ||
| 2037 | 17.02 | 13.50 | -3.52 | ---- | -0.00 | 0.25 | 0.25 | ||
| 2038 | 17.02 | 13.49 | -3.53 | ---- | -0.00 | 0.24 | 0.25 | ||
| 2039 | 17.00 | 13.49 | -3.51 | ---- | -0.00 | 0.24 | 0.24 | ||
| 2040 | 16.96 | 13.48 | -3.48 | ---- | -0.00 | 0.23 | 0.23 | ||
| 2041 | 16.91 | 13.47 | -3.44 | ---- | -0.00 | 0.23 | 0.23 | ||
| 2042 | 16.86 | 13.46 | -3.40 | ---- | -0.00 | 0.22 | 0.22 | ||
| 2043 | 16.81 | 13.45 | -3.35 | ---- | -0.00 | 0.21 | 0.22 | ||
| 2044 | 16.76 | 13.45 | -3.31 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2045 | 16.72 | 13.44 | -3.28 | ---- | -0.00 | 0.20 | 0.21 | ||
| 2046 | 16.68 | 13.44 | -3.24 | ---- | -0.00 | 0.20 | 0.20 | ||
| 2047 | 16.65 | 13.43 | -3.21 | ---- | -0.00 | 0.20 | 0.20 | ||
| 2048 | 16.62 | 13.43 | -3.19 | ---- | -0.00 | 0.19 | 0.19 | ||
| 2049 | 16.59 | 13.42 | -3.17 | ---- | -0.00 | 0.19 | 0.19 | ||
| 2050 | 16.57 | 13.42 | -3.15 | ---- | -0.00 | 0.19 | 0.19 | ||
| 2051 | 16.55 | 13.42 | -3.14 | ---- | -0.00 | 0.18 | 0.18 | ||
| 2052 | 16.56 | 13.41 | -3.14 | ---- | -0.00 | 0.18 | 0.18 | ||
| 2053 | 16.57 | 13.41 | -3.16 | ---- | -0.00 | 0.18 | 0.18 | ||
| 2054 | 16.59 | 13.41 | -3.18 | ---- | -0.00 | 0.18 | 0.18 | ||
| 2055 | 16.62 | 13.41 | -3.21 | ---- | -0.00 | 0.17 | 0.18 | ||
| 2056 | 16.66 | 13.41 | -3.24 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2057 | 16.70 | 13.42 | -3.28 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2058 | 16.74 | 13.42 | -3.32 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2059 | 16.78 | 13.42 | -3.36 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2060 | 16.83 | 13.42 | -3.41 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2061 | 16.87 | 13.42 | -3.45 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2062 | 16.92 | 13.43 | -3.50 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2063 | 16.97 | 13.43 | -3.54 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2064 | 17.02 | 13.43 | -3.59 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2065 | 17.07 | 13.43 | -3.63 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2066 | 17.12 | 13.43 | -3.68 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2067 | 17.17 | 13.44 | -3.73 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2068 | 17.22 | 13.44 | -3.78 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2069 | 17.27 | 13.44 | -3.83 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2070 | 17.33 | 13.45 | -3.88 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2071 | 17.37 | 13.45 | -3.92 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2072 | 17.41 | 13.45 | -3.96 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2073 | 17.45 | 13.45 | -4.00 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2074 | 17.48 | 13.45 | -4.03 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2075 | 17.50 | 13.45 | -4.05 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2076 | 17.52 | 13.46 | -4.06 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2077 | 17.52 | 13.46 | -4.07 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2078 | 17.52 | 13.45 | -4.07 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2079 | 17.52 | 13.45 | -4.06 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2080 | 17.51 | 13.45 | -4.06 | ---- | -0.00 | 0.15 | 0.16 | ||
| 2081 | 17.51 | 13.45 | -4.05 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2082 | 17.51 | 13.45 | -4.05 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2083 | 17.51 | 13.45 | -4.06 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2084 | 17.53 | 13.45 | -4.08 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2085 | 17.55 | 13.45 | -4.10 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2086 | 17.58 | 13.45 | -4.13 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2087 | 17.62 | 13.46 | -4.16 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2088 | 17.66 | 13.46 | -4.20 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2089 | 17.70 | 13.46 | -4.24 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2090 | 17.75 | 13.46 | -4.28 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2091 | 17.80 | 13.47 | -4.33 | ---- | -0.00 | 0.15 | 0.15 | ||
| 2092 | 17.84 | 13.47 | -4.37 | ---- | -0.00 | 0.15 | 0.15 | ||
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 | 16.66% | 14.03% | -2.64% | 2035 | -0.00% | 0.19% | 0.19% | ||
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.