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 2028. 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
2026151151
2027131131
2028111111
20299290
20307471
20315752
20324033
20332315
20347-2
2035-9-20
2036-25-37
2037-41-55
2038-58-73
2039-76-92
2040-94-111
2041-112-130
2042-132-151
2043-151-171
2044-171-192
2045-192-214
2046-213-236
2047-234-258
2048-256-281
2049-279-304
2050-301-327
2051-324-351
2052-347-375
2053-371-399
2054-395-424
2055-420-449
2056-445-474
2057-470-500
2058-496-526
2059-522-553
2060-550-581
2061-578-609
2062-607-638
2063-636-668
2064-666-699
2065-697-730
2066-729-762
2067-761-794
2068-794-827
2069-827-861
2070-861-895
2071-896-930
2072-931-966
2073-967-1002
2074-1004-1039
2075-1042-1078
2076-1081-1117
2077-1121-1157
2078-1162-1199
2079-1204-1242
2080-1248-1285
2081-1292-1330
2082-1337-1376
2083-1384-1422
2084-1431-1470
2085-1480-1519
2086-1530-1570
2087-1581-1621
2088-1633-1674
2089-1686-1728
2090-1740-1782
2091-1795-1838
2092-1850-1893
2093-1906-1950
2094-1962-2007
2095-2019-2064
2096-2075-2121
2097-2132-2178
2098-2189-2236
2099-2246-2293
2100-2303-2350
2101-2359-2408
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