US SB358

Increases the income threshold at which Social Security benefits become taxable to $34,000 for single filers and $68,000 for joint filers, with annual inflation adjustments beginning after 2025

Limits taxable Social Security benefits to 85% of benefits received or 85% of income exceeding the threshold, whichever is less

Appropriates Treasury funds to reimburse Social Security and Railroad Retirement trust funds for any revenue losses resulting from the threshold increases

Offsets costs through pro rata rescissions from non-security discretionary appropriations beginning in fiscal year 2027, exempting defense and security spending

Requires the Office of Management and Budget to publish annual reports detailing rescissions made under the act, starting January 1, 2028