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 2027. 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
2025169169
2026149149
2027131131
2028113110
20299590
20307870
20316051
20324331
20332612
20349-8
2035-9-27
2036-27-47
2037-45-67
2038-63-88
2039-83-109
2040-102-130
2041-122-152
2042-143-174
2043-164-197
2044-185-220
2045-206-243
2046-228-266
2047-250-290
2048-272-313
2049-295-337
2050-317-361
2051-340-385
2052-363-409
2053-386-433
2054-409-458
2055-433-482
2056-457-507
2057-481-532
2058-505-557
2059-530-583
2060-556-610
2061-582-637
2062-609-664
2063-636-692
2064-664-721
2065-692-750
2066-721-779
2067-750-809
2068-780-840
2069-810-870
2070-840-901
2071-871-933
2072-903-965
2073-935-998
2074-967-1031
2075-1000-1065
2076-1035-1099
2077-1070-1135
2078-1106-1172
2079-1142-1209
2080-1180-1248
2081-1219-1287
2082-1258-1327
2083-1298-1368
2084-1338-1409
2085-1380-1452
2086-1423-1496
2087-1466-1540
2088-1510-1585
2089-1554-1630
2090-1599-1675
2091-1643-1720
2092-1687-1765
2093-1731-1810
2094-1774-1854
2095-1816-1897
2096-1858-1940
2097-1900-1982
2098-1941-2024
2099-1982-2065
2100-2022-2106
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