Description of Proposed Provision:
E2.8: Apply a 2 percent payroll tax on earnings above the current-law taxable maximum for years 2020-2067, and a 3 percent rate for years 2068 and later. 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 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.85 | 13.35 | -0.51 | 259 | 0.00 | 0.38 | 0.38 | ||
| 2021 | 14.02 | 13.40 | -0.62 | 247 | -0.00 | 0.40 | 0.40 | ||
| 2022 | 14.25 | 13.43 | -0.83 | 235 | -0.00 | 0.40 | 0.40 | ||
| 2023 | 14.54 | 13.45 | -1.09 | 223 | -0.00 | 0.40 | 0.40 | ||
| 2024 | 14.83 | 13.48 | -1.34 | 209 | -0.00 | 0.40 | 0.40 | ||
| 2025 | 15.10 | 13.50 | -1.59 | 195 | -0.00 | 0.40 | 0.40 | ||
| 2026 | 15.37 | 13.54 | -1.83 | 180 | -0.00 | 0.40 | 0.40 | ||
| 2027 | 15.62 | 13.55 | -2.06 | 165 | -0.00 | 0.40 | 0.40 | ||
| 2028 | 15.85 | 13.57 | -2.28 | 149 | -0.00 | 0.40 | 0.40 | ||
| 2029 | 16.06 | 13.58 | -2.48 | 134 | -0.00 | 0.40 | 0.40 | ||
| 2030 | 16.26 | 13.60 | -2.67 | 118 | -0.00 | 0.40 | 0.40 | ||
| 2031 | 16.45 | 13.61 | -2.84 | 102 | -0.00 | 0.40 | 0.40 | ||
| 2032 | 16.60 | 13.62 | -2.98 | 85 | -0.00 | 0.40 | 0.40 | ||
| 2033 | 16.74 | 13.63 | -3.11 | 68 | -0.00 | 0.40 | 0.40 | ||
| 2034 | 16.85 | 13.64 | -3.21 | 50 | -0.00 | 0.40 | 0.40 | ||
| 2035 | 16.92 | 13.64 | -3.28 | 32 | -0.00 | 0.40 | 0.40 | ||
| 2036 | 16.98 | 13.65 | -3.34 | 13 | -0.00 | 0.40 | 0.40 | ||
| 2037 | 17.02 | 13.65 | -3.37 | ---- | -0.00 | 0.40 | 0.41 | ||
| 2038 | 17.02 | 13.65 | -3.37 | ---- | -0.00 | 0.40 | 0.41 | ||
| 2039 | 16.99 | 13.65 | -3.34 | ---- | -0.00 | 0.40 | 0.41 | ||
| 2040 | 16.96 | 13.65 | -3.31 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2041 | 16.91 | 13.65 | -3.26 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2042 | 16.85 | 13.64 | -3.21 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2043 | 16.80 | 13.64 | -3.16 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2044 | 16.75 | 13.64 | -3.11 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2045 | 16.71 | 13.64 | -3.07 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2046 | 16.67 | 13.64 | -3.03 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2047 | 16.64 | 13.64 | -3.00 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2048 | 16.61 | 13.64 | -2.97 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2049 | 16.58 | 13.63 | -2.95 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2050 | 16.56 | 13.63 | -2.92 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2051 | 16.55 | 13.63 | -2.91 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2052 | 16.55 | 13.63 | -2.91 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2053 | 16.56 | 13.64 | -2.92 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2054 | 16.58 | 13.64 | -2.94 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2055 | 16.61 | 13.64 | -2.97 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2056 | 16.64 | 13.64 | -3.00 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2057 | 16.68 | 13.65 | -3.04 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2058 | 16.73 | 13.65 | -3.08 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2059 | 16.77 | 13.65 | -3.12 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2060 | 16.82 | 13.66 | -3.16 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2061 | 16.86 | 13.66 | -3.20 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2062 | 16.91 | 13.66 | -3.25 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2063 | 16.96 | 13.67 | -3.29 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2064 | 17.00 | 13.67 | -3.33 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2065 | 17.05 | 13.67 | -3.38 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2066 | 17.10 | 13.68 | -3.43 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2067 | 17.15 | 13.68 | -3.47 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2068 | 17.21 | 13.87 | -3.33 | ---- | -0.02 | 0.59 | 0.61 | ||
| 2069 | 17.26 | 13.88 | -3.37 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2070 | 17.31 | 13.89 | -3.42 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2071 | 17.36 | 13.89 | -3.46 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2072 | 17.40 | 13.89 | -3.50 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2073 | 17.43 | 13.90 | -3.53 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2074 | 17.46 | 13.90 | -3.56 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2075 | 17.49 | 13.90 | -3.58 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2076 | 17.50 | 13.90 | -3.60 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2077 | 17.51 | 13.90 | -3.60 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2078 | 17.51 | 13.90 | -3.60 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2079 | 17.50 | 13.90 | -3.60 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2080 | 17.49 | 13.90 | -3.59 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2081 | 17.49 | 13.90 | -3.58 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2082 | 17.49 | 13.90 | -3.58 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2083 | 17.49 | 13.90 | -3.59 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2084 | 17.51 | 13.91 | -3.60 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2085 | 17.53 | 13.91 | -3.62 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2086 | 17.56 | 13.91 | -3.65 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2087 | 17.60 | 13.91 | -3.69 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2088 | 17.64 | 13.91 | -3.72 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2089 | 17.68 | 13.92 | -3.76 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2090 | 17.73 | 13.92 | -3.81 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2091 | 17.78 | 13.92 | -3.85 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2092 | 17.82 | 13.93 | -3.90 | ---- | -0.02 | 0.61 | 0.63 | ||
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 | 16.66% | 14.27% | -2.38% | 2036 | -0.01% | 0.43% | 0.44% | ||
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.