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 2026. 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
2024188188
2025171171
2026152152
2027134132
2028117112
202910193
20308474
20316856
20325338
20333720
2034223
20357-14
2036-9-32
2037-26-51
2038-43-70
2039-60-89
2040-78-109
2041-96-129
2042-115-150
2043-135-171
2044-154-192
2045-174-214
2046-194-236
2047-215-258
2048-235-280
2049-256-302
2050-277-324
2051-299-347
2052-320-370
2053-342-392
2054-364-416
2055-386-439
2056-409-462
2057-431-486
2058-455-510
2059-478-535
2060-502-560
2061-527-585
2062-553-611
2063-579-638
2064-605-665
2065-632-693
2066-660-722
2067-688-750
2068-716-779
2069-745-809
2070-774-838
2071-803-869
2072-834-899
2073-864-931
2074-895-963
2075-927-995
2076-960-1028
2077-993-1062
2078-1027-1097
2079-1062-1133
2080-1098-1170
2081-1134-1207
2082-1172-1245
2083-1209-1284
2084-1248-1323
2085-1287-1363
2086-1327-1404
2087-1368-1446
2088-1409-1488
2089-1450-1530
2090-1491-1572
2091-1532-1614
2092-1573-1655
2093-1612-1695
2094-1651-1735
2095-1689-1774
2096-1727-1813
2097-1764-1850
2098-1801-1888
2099-1838-1925
back