Proposed Provision: Tax Reform for Individuals: Starting in 2013, 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.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201112.512.513.313.3
201212.912.913.213.2
201312.913.013.213.2
201412.913.013.213.2
201512.913.013.213.2
201613.013.013.313.3
201713.013.013.513.5
201813.013.113.613.6
201913.013.113.913.9
202013.113.114.214.2
202113.113.114.514.5
202213.113.114.814.8
202313.113.115.115.1
202413.113.115.415.4
202513.113.215.715.7
202613.213.215.915.9
202713.213.216.116.1
202813.213.216.316.3
202913.213.216.516.5
203013.213.216.716.7
203113.213.216.816.8
203213.213.216.916.9
203313.213.216.916.9
203413.213.217.017.0
203513.213.217.017.0
203613.213.217.017.0
203713.213.217.017.0
203813.213.217.017.0
203913.213.217.017.0
204013.213.217.017.0
204113.213.216.916.9
204213.213.216.916.9
204313.213.216.816.8
204413.213.216.816.8
204513.213.216.816.8
204613.213.216.816.8
204713.213.216.716.7
204813.213.216.716.7
204913.213.216.716.7
205013.213.216.716.7
205113.213.216.716.7
205213.213.216.716.7
205313.213.216.716.7
205413.213.216.716.7
205513.313.216.716.7
205613.313.216.716.7
205713.313.216.816.8
205813.313.216.816.8
205913.313.216.816.8
206013.313.216.816.8
206113.313.216.816.8
206213.313.216.816.8
206313.313.216.816.8
206413.313.216.816.8
206513.313.216.916.9
206613.313.216.916.9
206713.313.216.916.9
206813.313.216.916.9
206913.313.217.017.0
207013.313.217.017.0
207113.313.217.017.0
207213.313.217.117.1
207313.313.217.117.1
207413.313.217.117.1
207513.313.217.217.2
207613.313.217.217.2
207713.313.217.217.2
207813.313.217.317.3
207913.313.217.317.3
208013.313.217.417.4
208113.313.217.417.4
208213.313.217.417.4
208313.313.217.517.5
208413.313.317.517.5
208513.313.317.617.6
208613.313.317.617.6
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