Description of Proposed Provision:
E2.6: Apply a 3 percent payroll tax on earnings above the current-law taxable maximum starting in 2018. Do not provide benefit credit for earnings above the current-law taxable maximum.
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 |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 13.50 | 0.01 | 287 | 0.00 | 0.57 | 0.57 | ||
| 2019 | 13.70 | 13.55 | -0.15 | 277 | -0.00 | 0.60 | 0.60 | ||
| 2020 | 13.85 | 13.56 | -0.29 | 267 | -0.00 | 0.60 | 0.60 | ||
| 2021 | 14.02 | 13.59 | -0.42 | 257 | -0.00 | 0.60 | 0.60 | ||
| 2022 | 14.25 | 13.62 | -0.63 | 246 | -0.00 | 0.60 | 0.60 | ||
| 2023 | 14.54 | 13.65 | -0.90 | 234 | -0.00 | 0.60 | 0.60 | ||
| 2024 | 14.82 | 13.68 | -1.14 | 222 | -0.00 | 0.60 | 0.60 | ||
| 2025 | 15.10 | 13.70 | -1.40 | 208 | -0.00 | 0.60 | 0.60 | ||
| 2026 | 15.37 | 13.73 | -1.64 | 194 | -0.00 | 0.60 | 0.60 | ||
| 2027 | 15.61 | 13.75 | -1.87 | 180 | -0.00 | 0.60 | 0.60 | ||
| 2028 | 15.85 | 13.76 | -2.09 | 166 | -0.00 | 0.60 | 0.60 | ||
| 2029 | 16.06 | 13.78 | -2.28 | 151 | -0.00 | 0.60 | 0.60 | ||
| 2030 | 16.26 | 13.79 | -2.47 | 136 | -0.00 | 0.60 | 0.60 | ||
| 2031 | 16.44 | 13.80 | -2.64 | 121 | -0.00 | 0.60 | 0.60 | ||
| 2032 | 16.60 | 13.82 | -2.79 | 106 | -0.01 | 0.60 | 0.60 | ||
| 2033 | 16.73 | 13.82 | -2.91 | 90 | -0.01 | 0.60 | 0.60 | ||
| 2034 | 16.84 | 13.83 | -3.01 | 73 | -0.01 | 0.60 | 0.60 | ||
| 2035 | 16.92 | 13.84 | -3.08 | 56 | -0.01 | 0.60 | 0.60 | ||
| 2036 | 16.98 | 13.84 | -3.14 | 39 | -0.01 | 0.60 | 0.60 | ||
| 2037 | 17.01 | 13.85 | -3.17 | 21 | -0.01 | 0.60 | 0.61 | ||
| 2038 | 17.01 | 13.85 | -3.17 | 3 | -0.01 | 0.60 | 0.61 | ||
| 2039 | 16.99 | 13.85 | -3.14 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2040 | 16.95 | 13.85 | -3.11 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2041 | 16.91 | 13.84 | -3.06 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2042 | 16.85 | 13.84 | -3.01 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2043 | 16.80 | 13.84 | -2.96 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2044 | 16.75 | 13.84 | -2.91 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2045 | 16.71 | 13.84 | -2.87 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2046 | 16.67 | 13.83 | -2.83 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2047 | 16.63 | 13.83 | -2.80 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2048 | 16.60 | 13.83 | -2.77 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2049 | 16.57 | 13.83 | -2.74 | ---- | -0.01 | 0.60 | 0.61 | ||
| 2050 | 16.55 | 13.83 | -2.72 | ---- | -0.02 | 0.60 | 0.61 | ||
| 2051 | 16.54 | 13.83 | -2.71 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2052 | 16.54 | 13.83 | -2.71 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2053 | 16.55 | 13.83 | -2.72 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2054 | 16.57 | 13.83 | -2.74 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2055 | 16.60 | 13.84 | -2.76 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2056 | 16.64 | 13.84 | -2.80 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2057 | 16.68 | 13.84 | -2.83 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2058 | 16.72 | 13.85 | -2.87 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2059 | 16.76 | 13.85 | -2.91 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2060 | 16.81 | 13.85 | -2.95 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2061 | 16.85 | 13.86 | -3.00 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2062 | 16.90 | 13.86 | -3.04 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2063 | 16.95 | 13.86 | -3.08 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2064 | 16.99 | 13.87 | -3.13 | ---- | -0.02 | 0.60 | 0.63 | ||
| 2065 | 17.04 | 13.87 | -3.17 | ---- | -0.02 | 0.60 | 0.63 | ||
| 2066 | 17.09 | 13.87 | -3.22 | ---- | -0.02 | 0.60 | 0.63 | ||
| 2067 | 17.14 | 13.88 | -3.27 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2068 | 17.20 | 13.88 | -3.32 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2069 | 17.25 | 13.88 | -3.36 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2070 | 17.30 | 13.89 | -3.41 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2071 | 17.35 | 13.89 | -3.46 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2072 | 17.39 | 13.89 | -3.49 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2073 | 17.42 | 13.90 | -3.53 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2074 | 17.45 | 13.90 | -3.55 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2075 | 17.48 | 13.90 | -3.58 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2076 | 17.49 | 13.90 | -3.59 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2077 | 17.50 | 13.90 | -3.59 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2078 | 17.50 | 13.90 | -3.59 | ---- | -0.03 | 0.60 | 0.63 | ||
| 2079 | 17.49 | 13.90 | -3.59 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2080 | 17.48 | 13.90 | -3.58 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2081 | 17.48 | 13.90 | -3.58 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2082 | 17.48 | 13.90 | -3.57 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2083 | 17.49 | 13.90 | -3.58 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2084 | 17.50 | 13.90 | -3.60 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2085 | 17.52 | 13.91 | -3.62 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2086 | 17.55 | 13.91 | -3.65 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2087 | 17.59 | 13.91 | -3.68 | ---- | -0.03 | 0.61 | 0.63 | ||
| 2088 | 17.63 | 13.91 | -3.72 | ---- | -0.03 | 0.61 | 0.64 | ||
| 2089 | 17.67 | 13.92 | -3.76 | ---- | -0.03 | 0.61 | 0.64 | ||
| 2090 | 17.72 | 13.92 | -3.80 | ---- | -0.03 | 0.61 | 0.64 | ||
| 2091 | 17.77 | 13.92 | -3.85 | ---- | -0.03 | 0.61 | 0.64 | ||
| 2092 | 17.82 | 13.93 | -3.89 | ---- | -0.03 | 0.61 | 0.64 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 16.65% | 14.43% | -2.22% | 2038 | -0.01% | 0.59% | 0.61% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.