; and (B) to account for the nonapplication of such amendments after calendar year 2034. 104. Increasing threshold amounts for inclusion of Social Security benefits in income (a) In general Subsection (a) of section 86 of the Internal Revenue Code of 1986 is amended to read as follows: (a) In general Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes Social Security benefits in an amount equal to the lesser of— (1) 85 percent of the Social Security benefits received during the taxable year, or (2) one-half of the excess described in subsection (b)(1). . (b) Base amount Subsection (c) of section 86 of such Code is amended to read as follows: (c) Base amount For purposes of this section, the term base amount means— (1) except as otherwise provided in this paragraph, $35,000, (2) $50,000 in the case of a joint return, and (3) zero in the case of a taxpayer who— (A) is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, and (B) does not live apart from his spouse at all times during the taxable year. . (c) Transfers to trust funds (1) Hospital Insurance Trust Fund held harmless Of the total revenue from taxation of social security benefits, there are appropriated to the Federal Hospital Insurance Trust Fund such amounts as would be transferred to such fund under section 121(e) of the Social Security Amendments of 1983 ( 42 U.S.C. 401 note) and section 86 of such Code as such sections were in effect on the day before the date of the enactment of this Act, at such times and in such manner as would be provided therein. (2) Transfers to payor funds Of the balance of the total revenue from taxation of social security benefits remaining after appropriations under paragraph (1) have been made, there are appropriated to each payor fund amounts equivalent to the portion of such balance equal to a fraction— (A) the numerator of which is the amount equivalent