Description of Proposed Provision:
E2.7: Apply a 6 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 | 14.04 | 0.55 | 287 | 0.00 | 1.11 | 1.11 | ||
| 2019 | 13.70 | 14.12 | 0.42 | 281 | -0.00 | 1.17 | 1.18 | ||
| 2020 | 13.85 | 14.14 | 0.29 | 274 | -0.00 | 1.18 | 1.18 | ||
| 2021 | 14.01 | 14.17 | 0.16 | 268 | -0.00 | 1.18 | 1.18 | ||
| 2022 | 14.25 | 14.20 | -0.05 | 261 | -0.00 | 1.18 | 1.18 | ||
| 2023 | 14.54 | 14.22 | -0.32 | 253 | -0.00 | 1.17 | 1.17 | ||
| 2024 | 14.82 | 14.25 | -0.57 | 243 | -0.00 | 1.17 | 1.17 | ||
| 2025 | 15.09 | 14.27 | -0.82 | 233 | -0.00 | 1.17 | 1.17 | ||
| 2026 | 15.37 | 14.30 | -1.06 | 222 | -0.01 | 1.17 | 1.17 | ||
| 2027 | 15.61 | 14.32 | -1.29 | 211 | -0.01 | 1.17 | 1.17 | ||
| 2028 | 15.85 | 14.34 | -1.51 | 200 | -0.01 | 1.17 | 1.17 | ||
| 2029 | 16.06 | 14.35 | -1.71 | 188 | -0.01 | 1.17 | 1.18 | ||
| 2030 | 16.26 | 14.36 | -1.89 | 176 | -0.01 | 1.17 | 1.18 | ||
| 2031 | 16.44 | 14.38 | -2.06 | 165 | -0.01 | 1.17 | 1.18 | ||
| 2032 | 16.60 | 14.39 | -2.21 | 153 | -0.01 | 1.17 | 1.18 | ||
| 2033 | 16.73 | 14.40 | -2.33 | 140 | -0.01 | 1.17 | 1.18 | ||
| 2034 | 16.84 | 14.40 | -2.43 | 127 | -0.01 | 1.17 | 1.18 | ||
| 2035 | 16.91 | 14.41 | -2.50 | 114 | -0.01 | 1.17 | 1.18 | ||
| 2036 | 16.97 | 14.41 | -2.56 | 100 | -0.01 | 1.17 | 1.18 | ||
| 2037 | 17.01 | 14.42 | -2.59 | 87 | -0.01 | 1.17 | 1.18 | ||
| 2038 | 17.01 | 14.42 | -2.59 | 73 | -0.02 | 1.17 | 1.19 | ||
| 2039 | 16.98 | 14.42 | -2.56 | 59 | -0.02 | 1.17 | 1.19 | ||
| 2040 | 16.94 | 14.42 | -2.52 | 44 | -0.02 | 1.17 | 1.19 | ||
| 2041 | 16.90 | 14.42 | -2.48 | 30 | -0.02 | 1.17 | 1.19 | ||
| 2042 | 16.84 | 14.42 | -2.43 | 16 | -0.02 | 1.17 | 1.19 | ||
| 2043 | 16.79 | 14.41 | -2.37 | 3 | -0.02 | 1.17 | 1.19 | ||
| 2044 | 16.74 | 14.41 | -2.33 | ---- | -0.02 | 1.17 | 1.19 | ||
| 2045 | 16.70 | 14.41 | -2.29 | ---- | -0.02 | 1.17 | 1.20 | ||
| 2046 | 16.66 | 14.41 | -2.25 | ---- | -0.02 | 1.17 | 1.20 | ||
| 2047 | 16.62 | 14.41 | -2.21 | ---- | -0.03 | 1.17 | 1.20 | ||
| 2048 | 16.59 | 14.41 | -2.18 | ---- | -0.03 | 1.17 | 1.20 | ||
| 2049 | 16.56 | 14.41 | -2.16 | ---- | -0.03 | 1.17 | 1.20 | ||
| 2050 | 16.54 | 14.41 | -2.13 | ---- | -0.03 | 1.17 | 1.20 | ||
| 2051 | 16.53 | 14.41 | -2.12 | ---- | -0.03 | 1.17 | 1.20 | ||
| 2052 | 16.53 | 14.41 | -2.12 | ---- | -0.03 | 1.17 | 1.21 | ||
| 2053 | 16.54 | 14.41 | -2.13 | ---- | -0.03 | 1.17 | 1.21 | ||
| 2054 | 16.56 | 14.41 | -2.14 | ---- | -0.03 | 1.18 | 1.21 | ||
| 2055 | 16.58 | 14.41 | -2.17 | ---- | -0.04 | 1.18 | 1.21 | ||
| 2056 | 16.62 | 14.42 | -2.20 | ---- | -0.04 | 1.18 | 1.21 | ||
| 2057 | 16.66 | 14.42 | -2.24 | ---- | -0.04 | 1.18 | 1.21 | ||
| 2058 | 16.70 | 14.42 | -2.28 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2059 | 16.74 | 14.43 | -2.32 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2060 | 16.79 | 14.43 | -2.36 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2061 | 16.83 | 14.43 | -2.40 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2062 | 16.88 | 14.44 | -2.44 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2063 | 16.93 | 14.44 | -2.49 | ---- | -0.04 | 1.18 | 1.22 | ||
| 2064 | 16.97 | 14.44 | -2.53 | ---- | -0.05 | 1.18 | 1.22 | ||
| 2065 | 17.02 | 14.45 | -2.57 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2066 | 17.07 | 14.45 | -2.62 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2067 | 17.12 | 14.45 | -2.67 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2068 | 17.17 | 14.46 | -2.71 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2069 | 17.23 | 14.46 | -2.76 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2070 | 17.28 | 14.47 | -2.81 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2071 | 17.32 | 14.47 | -2.85 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2072 | 17.36 | 14.47 | -2.89 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2073 | 17.40 | 14.48 | -2.92 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2074 | 17.43 | 14.48 | -2.95 | ---- | -0.05 | 1.18 | 1.23 | ||
| 2075 | 17.45 | 14.48 | -2.97 | ---- | -0.05 | 1.18 | 1.24 | ||
| 2076 | 17.47 | 14.48 | -2.98 | ---- | -0.05 | 1.18 | 1.24 | ||
| 2077 | 17.47 | 14.48 | -2.99 | ---- | -0.05 | 1.18 | 1.24 | ||
| 2078 | 17.47 | 14.48 | -2.99 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2079 | 17.46 | 14.48 | -2.98 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2080 | 17.46 | 14.48 | -2.97 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2081 | 17.45 | 14.48 | -2.97 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2082 | 17.45 | 14.49 | -2.97 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2083 | 17.46 | 14.49 | -2.97 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2084 | 17.47 | 14.49 | -2.99 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2085 | 17.50 | 14.49 | -3.01 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2086 | 17.53 | 14.49 | -3.04 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2087 | 17.56 | 14.49 | -3.07 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2088 | 17.60 | 14.50 | -3.11 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2089 | 17.65 | 14.50 | -3.15 | ---- | -0.05 | 1.19 | 1.24 | ||
| 2090 | 17.70 | 14.50 | -3.19 | ---- | -0.05 | 1.19 | 1.25 | ||
| 2091 | 17.74 | 14.51 | -3.24 | ---- | -0.05 | 1.19 | 1.25 | ||
| 2092 | 17.79 | 14.51 | -3.28 | ---- | -0.05 | 1.19 | 1.25 | ||
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 | 16.64% | 15.00% | -1.64% | 2043 | -0.03% | 1.16% | 1.19% | ||
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.