Long Range Solvency Provisions

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2018, and tax all earnings once the current-law taxable maximum exceeds $250,000. 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
2017	13.41	13.03	-0.38	298	0.00	0.00	0.00
2018	13.49	14.19	0.70	287	0.00	1.26	1.26
2019	13.70	14.32	0.63	282	-0.00	1.38	1.38
2020	13.85	14.40	0.55	277	-0.00	1.44	1.44
2021	14.01	14.48	0.47	272	-0.00	1.49	1.50
2022	14.25	14.57	0.31	267	-0.00	1.54	1.55
2023	14.54	14.63	0.10	261	-0.00	1.59	1.59
2024	14.82	14.72	-0.10	254	-0.01	1.63	1.64
2025	15.09	14.79	-0.31	247	-0.01	1.68	1.69
2026	15.36	14.87	-0.49	239	-0.01	1.73	1.74
2027	15.61	14.94	-0.67	231	-0.01	1.79	1.80
2028	15.84	15.02	-0.83	223	-0.01	1.85	1.86
2029	16.06	15.09	-0.96	215	-0.01	1.91	1.92
2030	16.25	15.17	-1.08	208	-0.01	1.98	1.99
2031	16.44	15.25	-1.18	201	-0.01	2.05	2.06
2032	16.59	15.33	-1.26	194	-0.01	2.12	2.13
2033	16.73	15.42	-1.31	188	-0.02	2.19	2.21
2034	16.83	15.50	-1.33	181	-0.02	2.27	2.28
2035	16.91	15.55	-1.36	174	-0.02	2.31	2.33
2036	16.97	15.56	-1.41	168	-0.02	2.31	2.33
2037	17.00	15.56	-1.44	161	-0.02	2.32	2.34
2038	17.00	15.56	-1.43	155	-0.02	2.32	2.34
2039	16.97	15.57	-1.41	148	-0.02	2.32	2.34
2040	16.94	15.56	-1.37	142	-0.03	2.32	2.34
2041	16.89	15.56	-1.32	136	-0.03	2.32	2.35
2042	16.83	15.56	-1.27	130	-0.03	2.32	2.35
2043	16.78	15.56	-1.22	124	-0.03	2.32	2.35
2044	16.73	15.56	-1.17	119	-0.03	2.32	2.35
2045	16.68	15.56	-1.13	114	-0.04	2.32	2.36
2046	16.64	15.56	-1.09	108	-0.04	2.32	2.36
2047	16.61	15.56	-1.05	103	-0.04	2.32	2.36
2048	16.57	15.56	-1.02	98	-0.04	2.32	2.36
2049	16.55	15.55	-0.99	94	-0.04	2.32	2.37
2050	16.52	15.55	-0.97	89	-0.05	2.32	2.37
2051	16.51	15.56	-0.95	84	-0.05	2.32	2.37
2052	16.51	15.56	-0.95	79	-0.05	2.32	2.37
2053	16.52	15.56	-0.96	75	-0.05	2.32	2.38
2054	16.53	15.56	-0.97	70	-0.06	2.33	2.38
2055	16.56	15.56	-1.00	65	-0.06	2.33	2.38
2056	16.60	15.57	-1.03	59	-0.06	2.33	2.39
2057	16.63	15.57	-1.06	54	-0.06	2.33	2.39
2058	16.67	15.57	-1.10	48	-0.07	2.33	2.39
2059	16.72	15.58	-1.14	42	-0.07	2.33	2.40
2060	16.76	15.58	-1.18	36	-0.07	2.33	2.40
2061	16.80	15.59	-1.22	29	-0.07	2.33	2.40
2062	16.85	15.59	-1.26	23	-0.07	2.33	2.40
2063	16.89	15.59	-1.30	16	-0.08	2.33	2.41
2064	16.94	15.60	-1.34	8	-0.08	2.33	2.41
2065	16.99	15.60	-1.39	1	-0.08	2.33	2.41
2066	17.04	15.61	-1.43	----	-0.08	2.33	2.42
2067	17.09	15.61	-1.48	----	-0.08	2.34	2.42
2068	17.14	15.61	-1.52	----	-0.08	2.34	2.42
2069	17.19	15.62	-1.57	----	-0.09	2.34	2.42
2070	17.24	15.62	-1.62	----	-0.09	2.34	2.43
2071	17.28	15.63	-1.66	----	-0.09	2.34	2.43
2072	17.32	15.63	-1.69	----	-0.09	2.34	2.43
2073	17.36	15.63	-1.72	----	-0.09	2.34	2.43
2074	17.39	15.64	-1.75	----	-0.09	2.34	2.43
2075	17.41	15.64	-1.77	----	-0.09	2.34	2.44
2076	17.43	15.64	-1.78	----	-0.09	2.34	2.44
2077	17.43	15.64	-1.79	----	-0.09	2.35	2.44
2078	17.43	15.65	-1.78	----	-0.09	2.35	2.44
2079	17.42	15.65	-1.78	----	-0.10	2.35	2.44
2080	17.42	15.65	-1.77	----	-0.10	2.35	2.45
2081	17.41	15.65	-1.76	----	-0.10	2.35	2.45
2082	17.41	15.65	-1.76	----	-0.10	2.35	2.45
2083	17.42	15.65	-1.77	----	-0.10	2.35	2.45
2084	17.43	15.65	-1.78	----	-0.10	2.35	2.45
2085	17.45	15.66	-1.80	----	-0.10	2.36	2.45
2086	17.48	15.66	-1.83	----	-0.10	2.36	2.45
2087	17.52	15.66	-1.86	----	-0.10	2.36	2.46
2088	17.56	15.67	-1.89	----	-0.10	2.36	2.46
2089	17.60	15.67	-1.93	----	-0.10	2.36	2.46
2090	17.65	15.67	-1.98	----	-0.10	2.36	2.46
2091	17.70	15.68	-2.02	----	-0.10	2.36	2.46
2092	17.75	15.68	-2.06	----	-0.10	2.37	2.46

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	16.62%	15.98%	-0.64%	2065	-0.05%	2.14%	2.19%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2017 Trustees Report.

Detailed Single Year Tables

Description of Proposed Provision: E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2018, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2018, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.