Long Range Solvency Provisions

Description of Proposed Provision:
E2.17: Apply 12.4 percent payroll tax rate on earnings above $400,000 starting in 2027 and tax all earnings once the current-law taxable maximum exceeds $400,000. Do not provide benefit credit for additional earnings taxed.

Financial Estimates for the OASDI Trust Fund Program

	Proposal				Change from Current Law
	Expressed as a percentage of current-law taxable payroll			Trust fund ratio as of January 1	Expressed as a percentage of current-law taxable payroll
Calendar year	Cost rate	Income rate	Annual balance	Trust fund ratio as of January 1	Cost rate	Income rate	Annual balance
2026	15.37	12.91	-2.45	151	0.00	0.00	0.00
2027	15.62	14.22	-1.40	131	0.00	1.37	1.37
2028	15.70	14.47	-1.23	119	-0.00	1.46	1.46
2029	15.74	14.57	-1.17	110	-0.00	1.50	1.51
2030	15.74	14.62	-1.11	100	-0.00	1.55	1.55
2031	15.72	14.68	-1.04	92	-0.00	1.60	1.60
2032	15.71	14.73	-0.98	85	-0.01	1.64	1.65
2033	15.71	14.82	-0.89	78	-0.01	1.69	1.70
2034	15.73	14.88	-0.85	72	-0.01	1.74	1.75
2035	15.76	14.95	-0.81	67	-0.01	1.79	1.80
2036	15.84	15.01	-0.82	62	-0.02	1.84	1.86
2037	15.93	15.08	-0.85	57	-0.02	1.90	1.92
2038	16.02	15.14	-0.88	51	-0.03	1.95	1.98
2039	16.10	15.21	-0.89	46	-0.03	2.01	2.04
2040	16.17	15.27	-0.90	41	-0.03	2.07	2.11
2041	16.24	15.34	-0.90	36	-0.04	2.14	2.17
2042	16.30	15.41	-0.89	30	-0.04	2.20	2.24
2043	16.37	15.48	-0.89	25	-0.04	2.27	2.31
2044	16.44	15.56	-0.89	20	-0.05	2.34	2.39
2045	16.52	15.64	-0.89	14	-0.05	2.41	2.47
2046	16.58	15.72	-0.86	9	-0.06	2.49	2.55
2047	16.64	15.74	-0.90	4	-0.06	2.51	2.57
2048	16.71	15.74	-0.97	—	-0.06	2.51	2.57
2049	16.78	15.75	-1.03	—	-0.07	2.51	2.57
2050	16.86	15.76	-1.10	—	-0.07	2.51	2.58
2051	16.95	15.76	-1.18	—	-0.07	2.51	2.58
2052	17.05	15.77	-1.28	—	-0.08	2.51	2.59
2053	17.16	15.78	-1.38	—	-0.08	2.51	2.59
2054	17.27	15.78	-1.49	—	-0.08	2.51	2.59
2055	17.39	15.79	-1.60	—	-0.08	2.51	2.60
2056	17.52	15.80	-1.72	—	-0.09	2.51	2.60
2057	17.65	15.81	-1.84	—	-0.09	2.51	2.60
2058	17.79	15.82	-1.97	—	-0.09	2.51	2.60
2059	17.92	15.83	-2.09	—	-0.09	2.51	2.60
2060	18.05	15.84	-2.22	—	-0.09	2.51	2.61
2061	18.18	15.85	-2.33	—	-0.09	2.51	2.61
2062	18.30	15.86	-2.45	—	-0.09	2.52	2.61
2063	18.42	15.86	-2.56	—	-0.09	2.52	2.61
2064	18.53	15.87	-2.66	—	-0.09	2.52	2.61
2065	18.65	15.88	-2.77	—	-0.09	2.52	2.61
2066	18.76	15.89	-2.88	—	-0.09	2.52	2.61
2067	18.88	15.89	-2.98	—	-0.09	2.52	2.61
2068	18.99	15.90	-3.09	—	-0.09	2.52	2.61
2069	19.11	15.91	-3.20	—	-0.09	2.52	2.61
2070	19.23	15.92	-3.31	—	-0.09	2.52	2.61
2071	19.35	15.93	-3.42	—	-0.09	2.52	2.61
2072	19.47	15.94	-3.53	—	-0.09	2.52	2.61
2073	19.59	15.94	-3.65	—	-0.09	2.52	2.61
2074	19.70	15.95	-3.75	—	-0.09	2.52	2.61
2075	19.81	15.96	-3.85	—	-0.09	2.52	2.61
2076	19.91	15.97	-3.94	—	-0.09	2.52	2.61
2077	20.00	15.97	-4.03	—	-0.09	2.52	2.61
2078	20.08	15.98	-4.10	—	-0.09	2.52	2.61
2079	20.14	15.98	-4.16	—	-0.09	2.53	2.61
2080	20.20	15.99	-4.22	—	-0.09	2.53	2.61
2081	20.26	15.99	-4.26	—	-0.08	2.53	2.61
2082	20.30	16.00	-4.30	—	-0.08	2.53	2.61
2083	20.33	16.00	-4.34	—	-0.08	2.53	2.61
2084	20.36	16.00	-4.36	—	-0.08	2.53	2.61
2085	20.37	16.00	-4.37	—	-0.08	2.53	2.61
2086	20.37	16.00	-4.36	—	-0.08	2.53	2.61
2087	20.36	16.00	-4.35	—	-0.08	2.53	2.61
2088	20.33	16.00	-4.33	—	-0.08	2.53	2.61
2089	20.31	16.00	-4.30	—	-0.08	2.53	2.61
2090	20.27	16.00	-4.27	—	-0.08	2.53	2.61
2091	20.23	16.00	-4.23	—	-0.08	2.53	2.61
2092	20.19	16.00	-4.19	—	-0.08	2.53	2.61
2093	20.15	16.00	-4.15	—	-0.08	2.53	2.61
2094	20.11	15.99	-4.12	—	-0.08	2.53	2.61
2095	20.07	15.99	-4.08	—	-0.08	2.53	2.61
2096	20.04	15.99	-4.05	—	-0.08	2.53	2.61
2097	20.01	15.99	-4.02	—	-0.08	2.54	2.61
2098	19.98	15.99	-3.99	—	-0.07	2.54	2.61
2099	19.96	15.99	-3.97	—	-0.07	2.54	2.61
2100	19.95	15.99	-3.96	—	-0.07	2.54	2.61
2101	19.94	15.99	-3.95	—	-0.07	2.54	2.61

Summarized Estimates

	Proposal				Change from Current Law
Years	Cost rate	Income rate	Actuarial balance	Year of reserve depletion¹	Cost rate	Income rate	Actuarial balance
2026-2100	18.04%	15.95%	-2.09%	2047	-0.06%	2.27%	2.33%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2026 Trustees Report.

Detailed Single Year Tables

Description of Proposed Provision: E2.17: Apply 12.4 percent payroll tax rate on earnings above $400,000 starting in 2027 and tax all earnings once the current-law taxable maximum exceeds $400,000. Do not provide benefit credit for additional earnings taxed.

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates

Description of Proposed Provision:
E2.17: Apply 12.4 percent payroll tax rate on earnings above $400,000 starting in 2027 and tax all earnings once the current-law taxable maximum exceeds $400,000. Do not provide benefit credit for additional earnings taxed.