Proposed Provision: F3. Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2027, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2027, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2027 exclusion level until fully eliminated in 2037.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2023204204
2024187187
2025168168
2026149149
2027131131
2028114114
20299699
20307883
20316069
20324355
20332543
2034730
2035-1219
2036-317
2037-51-3
2038-70-13
2039-91-24
2040-112-34
2041-133-45
2042-154-56
2043-176-68
2044-198-79
2045-220-90
2046-243-102
2047-265-113
2048-288-125
2049-311-137
2050-333-149
2051-357-161
2052-380-173
2053-403-186
2054-427-198
2055-450-211
2056-474-224
2057-498-238
2058-522-252
2059-547-266
2060-572-281
2061-597-296
2062-623-311
2063-650-328
2064-677-344
2065-705-361
2066-733-379
2067-762-397
2068-791-415
2069-820-434
2070-850-453
2071-880-472
2072-911-492
2073-942-513
2074-974-534
2075-1006-555
2076-1039-577
2077-1074-600
2078-1108-623
2079-1144-647
2080-1181-671
2081-1218-696
2082-1256-721
2083-1294-746
2084-1333-772
2085-1373-798
2086-1413-824
2087-1453-851
2088-1494-877
2089-1534-904
2090-1574-930
2091-1613-955
2092-1651-980
2093-1689-1005
2094-1726-1029
2095-1762-1053
2096-1798-1077
2097-1833-1100
2098-1868-1123
back