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Summary Measures and Graphs

Description of Proposed Provision:
F3: Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2021, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2021, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2021 exclusion level until fully eliminated in 2031. Eliminate the excise tax on ESI premiums starting in 2021.

Estimates based on the intermediate assumptions of the 2017 Trustees Report

Summary Measures
Current law
[percent of payroll]
Change from current law
[percent of payroll]
Shortfall eliminated
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
-2.83 -4.48 0.94 0.66 33% 15%


graph of OASDI cost rates and income rates by year, under
                 current law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under current law
                 and provision. click on graph to view underlying data.
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Last reviewed or modified July 13, 2017