Proposed Provision: H7. Replace the current-law thresholds for federal income taxation of OASDI benefits with a single set of thresholds at $50,000 for single filers and $100,000 for joint filers for taxation of up to 85 percent of OASDI benefits, effective for tax year 2021. These thresholds would be fixed and not indexed to price inflation or average wage increase. Reallocate a portion of revenue from taxation of OASDI benefits to the HI Trust Fund such that the HI Trust Fund would be in the same position as if the current-law computation (in the absence of this provision) applied. The net amount of revenue from taxing OASDI benefits, after the allocation to HI, would be allocated to the combined Social Security Trust Fund.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2019273273
2020260260
2021245245
2022229227
2023213209
2024197191
2025180172
2026163154
2027147135
2028130117
202911498
20309780
20318061
20326343
20334623
2034284
203510-16
2036-9-37
2037-28-57
2038-47-79
2039-67-100
2040-87-122
2041-108-144
2042-129-166
2043-150-189
2044-171-211
2045-192-234
2046-213-256
2047-234-278
2048-255-301
2049-276-323
2050-297-345
2051-318-367
2052-338-389
2053-359-411
2054-380-433
2055-401-455
2056-422-477
2057-444-499
2058-465-521
2059-487-543
2060-509-566
2061-531-589
2062-554-613
2063-577-636
2064-601-661
2065-625-685
2066-649-710
2067-674-736
2068-699-761
2069-724-787
2070-749-813
2071-776-840
2072-802-867
2073-830-895
2074-857-923
2075-885-952
2076-914-982
2077-944-1012
2078-975-1044
2079-1007-1076
2080-1039-1109
2081-1072-1143
2082-1106-1177
2083-1139-1212
2084-1173-1246
2085-1207-1281
2086-1242-1316
2087-1275-1351
2088-1309-1385
2089-1342-1419
2090-1375-1453
2091-1407-1485
2092-1439-1518
2093-1471-1550
2094-1503-1583
back