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 2022. 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
2020261261
2021248248
2022233233
2023217215
2024200196
2025183177
2026165157
2027148138
2028130118
202911298
20309478
20317658
20325838
20333918
203420-3
20351-24
2036-19-45
2037-38-67
2038-59-89
2039-80-111
2040-101-134
2041-122-157
2042-144-180
2043-166-203
2044-188-227
2045-210-251
2046-232-275
2047-255-298
2048-277-322
2049-299-345
2050-322-369
2051-344-393
2052-367-416
2053-389-440
2054-412-463
2055-434-487
2056-457-511
2057-480-535
2058-504-559
2059-527-583
2060-551-608
2061-575-633
2062-599-658
2063-624-684
2064-650-710
2065-676-736
2066-702-763
2067-728-790
2068-755-817
2069-782-845
2070-809-873
2071-837-902
2072-866-931
2073-895-960
2074-925-991
2075-955-1022
2076-986-1053
2077-1018-1086
2078-1051-1119
2079-1084-1153
2080-1119-1189
2081-1154-1225
2082-1190-1261
2083-1226-1298
2084-1263-1335
2085-1300-1373
2086-1337-1411
2087-1374-1450
2088-1411-1487
2089-1448-1525
2090-1484-1562
2091-1520-1598
2092-1554-1633
2093-1589-1668
2094-1623-1703
2095-1657-1737
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