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 2019. 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
2017298298
2018287287
2019273273
2020259256
2021245239
2022230222
2023215205
2024199186
2025182168
2026165148
2027148129
2028130109
202911289
20309469
20317548
20325627
2033375
203416-17
2035-4-40
2036-26-63
2037-47-87
2038-70-112
2039-92-136
2040-115-161
2041-138-186
2042-161-211
2043-184-236
2044-207-261
2045-230-286
2046-253-311
2047-276-336
2048-300-361
2049-323-386
2050-346-411
2051-370-436
2052-393-460
2053-417-485
2054-440-510
2055-464-535
2056-487-560
2057-511-585
2058-536-610
2059-560-636
2060-585-662
2061-611-689
2062-637-716
2063-663-743
2064-690-771
2065-717-799
2066-745-828
2067-772-857
2068-801-886
2069-829-915
2070-858-945
2071-888-976
2072-918-1007
2073-949-1039
2074-981-1072
2075-1014-1106
2076-1047-1140
2077-1082-1176
2078-1117-1213
2079-1153-1250
2080-1190-1288
2081-1227-1326
2082-1264-1364
2083-1300-1402
2084-1337-1439
2085-1374-1477
2086-1410-1514
2087-1446-1552
2088-1483-1589
2089-1520-1627
2090-1557-1665
2091-1595-1704
2092-1633-1743
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