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 2020. 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
2018288288
2019272272
2020256256
2021239237
2022223218
2023206199
2024188180
2025171161
2026154141
2027137123
2028120104
202910485
20308666
20316947
20325127
2033337
203414-14
2035-5-35
2036-25-57
2037-46-79
2038-67-102
2039-88-125
2040-110-149
2041-132-173
2042-154-197
2043-176-221
2044-199-245
2045-221-269
2046-244-293
2047-267-318
2048-289-342
2049-312-366
2050-335-390
2051-358-414
2052-381-439
2053-403-463
2054-426-487
2055-450-511
2056-473-536
2057-496-560
2058-520-585
2059-544-610
2060-569-635
2061-594-661
2062-619-688
2063-645-714
2064-671-742
2065-698-769
2066-725-797
2067-752-826
2068-780-854
2069-808-883
2070-837-913
2071-866-943
2072-896-974
2073-927-1005
2074-958-1037
2075-990-1070
2076-1023-1104
2077-1057-1139
2078-1092-1175
2079-1128-1212
2080-1165-1250
2081-1202-1288
2082-1240-1327
2083-1278-1366
2084-1316-1405
2085-1354-1445
2086-1392-1484
2087-1430-1523
2088-1468-1562
2089-1505-1600
2090-1543-1638
2091-1580-1677
2092-1618-1715
2093-1655-1754
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