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 2024. 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
2022230230
2023211211
2024194194
2025177175
2026160156
2027143136
2028126117
202910998
20309179
20317460
20325741
20333922
2034212
20353-18
2036-16-39
2037-35-60
2038-54-81
2039-74-103
2040-95-125
2041-116-147
2042-137-170
2043-158-193
2044-180-216
2045-202-239
2046-224-262
2047-246-286
2048-268-310
2049-291-333
2050-313-357
2051-336-381
2052-359-405
2053-383-429
2054-406-454
2055-430-478
2056-453-503
2057-477-527
2058-501-552
2059-525-577
2060-550-602
2061-575-628
2062-601-655
2063-627-681
2064-654-709
2065-681-736
2066-708-764
2067-736-793
2068-764-821
2069-792-850
2070-821-880
2071-850-909
2072-880-939
2073-910-970
2074-940-1001
2075-971-1032
2076-1003-1065
2077-1036-1098
2078-1069-1132
2079-1104-1167
2080-1139-1203
2081-1175-1240
2082-1212-1277
2083-1249-1315
2084-1286-1353
2085-1324-1392
2086-1363-1432
2087-1402-1472
2088-1442-1512
2089-1481-1552
2090-1520-1592
2091-1558-1630
2092-1595-1669
2093-1632-1706
2094-1668-1743
2095-1703-1779
2096-1738-1814
2097-1773-1849
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