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 2025. 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
2023204204
2024187187
2025168168
2026149147
2027131127
2028114107
20299687
20307867
20316047
20324327
2033258
20347-12
2035-12-33
2036-31-54
2037-51-75
2038-70-97
2039-91-120
2040-112-142
2041-133-165
2042-154-188
2043-176-212
2044-198-235
2045-220-259
2046-243-283
2047-265-307
2048-288-331
2049-311-355
2050-333-379
2051-357-403
2052-380-428
2053-403-452
2054-427-476
2055-450-501
2056-474-526
2057-498-550
2058-522-575
2059-547-601
2060-572-626
2061-597-653
2062-623-680
2063-650-707
2064-677-735
2065-705-763
2066-733-792
2067-762-821
2068-791-851
2069-820-881
2070-850-911
2071-880-942
2072-911-974
2073-942-1005
2074-974-1038
2075-1006-1071
2076-1039-1104
2077-1074-1139
2078-1108-1175
2079-1144-1211
2080-1181-1249
2081-1218-1287
2082-1256-1325
2083-1294-1364
2084-1333-1404
2085-1373-1445
2086-1413-1485
2087-1453-1527
2088-1494-1568
2089-1534-1609
2090-1574-1649
2091-1613-1690
2092-1651-1729
2093-1689-1767
2094-1726-1805
2095-1762-1842
2096-1798-1878
2097-1833-1914
2098-1868-1949
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