Description of Proposed Provision:
H5: Beginning in 2025, for single/head-of-household/married-filing-separate taxpayers with MAGI of $250,000 or more and joint filers with MAGI of $500,000 or more, include up to the remaining 15 percent of Social Security benefits in taxable income (increased from up to 85 percent of benefits taxable under current law). In subsequent years, update these thresholds for growth in wages (AWI). Revenue from this provision would be credited to the Social Security trust funds. Current law taxation of up to 85 percent of Social Security benefits would remain unchanged.
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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 14.12 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.27 | 12.92 | -1.35 | 239 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.44 | 12.95 | -1.49 | 223 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.62 | 12.97 | -1.66 | 206 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.80 | 12.99 | -1.81 | 188 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.98 | 13.01 | -1.97 | 171 | 0.00 | 0.01 | 0.01 | ||
| 2026 | 15.16 | 13.14 | -2.02 | 154 | -0.00 | 0.01 | 0.01 | ||
| 2027 | 15.36 | 13.16 | -2.20 | 137 | -0.00 | 0.01 | 0.01 | ||
| 2028 | 15.58 | 13.18 | -2.40 | 121 | -0.00 | 0.01 | 0.01 | ||
| 2029 | 15.79 | 13.20 | -2.60 | 104 | -0.00 | 0.01 | 0.01 | ||
| 2030 | 15.98 | 13.21 | -2.77 | 87 | -0.00 | 0.01 | 0.01 | ||
| 2031 | 16.16 | 13.22 | -2.94 | 69 | -0.00 | 0.01 | 0.01 | ||
| 2032 | 16.32 | 13.23 | -3.08 | 52 | -0.00 | 0.01 | 0.01 | ||
| 2033 | 16.45 | 13.25 | -3.21 | 33 | -0.00 | 0.01 | 0.01 | ||
| 2034 | 16.56 | 13.25 | -3.31 | 14 | -0.00 | 0.01 | 0.01 | ||
| 2035 | 16.65 | 13.26 | -3.39 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2036 | 16.72 | 13.27 | -3.45 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2037 | 16.78 | 13.27 | -3.51 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2038 | 16.82 | 13.28 | -3.54 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2039 | 16.83 | 13.28 | -3.55 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2040 | 16.83 | 13.28 | -3.55 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2041 | 16.81 | 13.28 | -3.53 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2042 | 16.78 | 13.28 | -3.50 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2043 | 16.73 | 13.28 | -3.46 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2044 | 16.69 | 13.28 | -3.42 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2045 | 16.66 | 13.28 | -3.38 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2046 | 16.63 | 13.28 | -3.35 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2047 | 16.60 | 13.28 | -3.33 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2048 | 16.58 | 13.28 | -3.30 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2049 | 16.55 | 13.27 | -3.28 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2050 | 16.54 | 13.28 | -3.27 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2051 | 16.53 | 13.28 | -3.26 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2052 | 16.53 | 13.28 | -3.26 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2053 | 16.54 | 13.28 | -3.27 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2054 | 16.56 | 13.28 | -3.28 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2055 | 16.59 | 13.28 | -3.31 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2056 | 16.62 | 13.29 | -3.34 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2057 | 16.67 | 13.29 | -3.37 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2058 | 16.71 | 13.29 | -3.42 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2059 | 16.76 | 13.30 | -3.46 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2060 | 16.81 | 13.30 | -3.51 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2061 | 16.86 | 13.31 | -3.55 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2062 | 16.91 | 13.31 | -3.60 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2063 | 16.96 | 13.31 | -3.65 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2064 | 17.01 | 13.32 | -3.70 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2065 | 17.07 | 13.32 | -3.75 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2066 | 17.13 | 13.33 | -3.80 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2067 | 17.18 | 13.33 | -3.85 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2068 | 17.24 | 13.33 | -3.91 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2069 | 17.30 | 13.34 | -3.96 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2070 | 17.36 | 13.34 | -4.02 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2071 | 17.42 | 13.35 | -4.07 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2072 | 17.47 | 13.35 | -4.12 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2073 | 17.51 | 13.35 | -4.16 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2074 | 17.55 | 13.36 | -4.20 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2075 | 17.59 | 13.36 | -4.23 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2076 | 17.61 | 13.36 | -4.25 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2077 | 17.62 | 13.36 | -4.26 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2078 | 17.63 | 13.36 | -4.26 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2079 | 17.62 | 13.36 | -4.25 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2080 | 17.61 | 13.36 | -4.24 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2081 | 17.59 | 13.36 | -4.23 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2082 | 17.57 | 13.36 | -4.21 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2083 | 17.55 | 13.36 | -4.19 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2084 | 17.54 | 13.36 | -4.18 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2085 | 17.53 | 13.36 | -4.17 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2086 | 17.53 | 13.36 | -4.17 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2087 | 17.53 | 13.36 | -4.17 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2088 | 17.55 | 13.36 | -4.19 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2089 | 17.57 | 13.36 | -4.21 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2090 | 17.60 | 13.36 | -4.24 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2091 | 17.64 | 13.37 | -4.27 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2092 | 17.68 | 13.37 | -4.31 | ---- | -0.00 | 0.01 | 0.01 | ||
| 2093 | 17.72 | 13.37 | -4.35 | ---- | -0.00 | 0.01 | 0.01 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 16.69% | 13.85% | -2.84% | 2034 | -0.00% | 0.01% | 0.01% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.