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 2023. 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
2021253253
2022231231
2023214214
2024196194
2025178173
2026159153
2027141132
2028122111
202910490
20308569
20316648
20324627
2033276
20347-16
2035-13-38
2036-33-61
2037-54-84
2038-76-107
2039-97-131
2040-119-155
2041-142-179
2042-165-204
2043-188-229
2044-211-254
2045-235-279
2046-258-304
2047-282-330
2048-306-355
2049-330-381
2050-354-406
2051-378-432
2052-403-458
2053-427-484
2054-452-510
2055-477-536
2056-502-562
2057-527-588
2058-552-614
2059-578-640
2060-604-667
2061-630-694
2062-657-722
2063-684-750
2064-712-778
2065-740-807
2066-768-836
2067-796-866
2068-825-895
2069-855-925
2070-884-956
2071-914-986
2072-945-1018
2073-976-1049
2074-1007-1081
2075-1039-1114
2076-1071-1147
2077-1105-1181
2078-1139-1217
2079-1175-1253
2080-1211-1290
2081-1248-1328
2082-1286-1366
2083-1324-1406
2084-1363-1446
2085-1403-1486
2086-1443-1527
2087-1483-1568
2088-1524-1610
2089-1564-1652
2090-1604-1692
2091-1643-1732
2092-1681-1771
2093-1718-1808
2094-1754-1845
2095-1789-1882
2096-1825-1918
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