Description of Proposed Provision:
E3.2: Increase the taxable maximum such that 90 percent of earnings would be subject to the payroll tax (phased in 2018-2027). 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 |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 13.07 | -0.42 | 287 | 0.00 | 0.14 | 0.14 | ||
| 2019 | 13.70 | 13.22 | -0.48 | 274 | -0.00 | 0.27 | 0.27 | ||
| 2020 | 13.85 | 13.36 | -0.49 | 261 | -0.00 | 0.40 | 0.40 | ||
| 2021 | 14.02 | 13.50 | -0.52 | 250 | -0.00 | 0.51 | 0.51 | ||
| 2022 | 14.25 | 13.63 | -0.62 | 239 | -0.00 | 0.61 | 0.61 | ||
| 2023 | 14.54 | 13.75 | -0.79 | 228 | -0.00 | 0.70 | 0.70 | ||
| 2024 | 14.82 | 13.87 | -0.95 | 216 | -0.00 | 0.79 | 0.79 | ||
| 2025 | 15.10 | 13.97 | -1.12 | 204 | -0.00 | 0.87 | 0.87 | ||
| 2026 | 15.37 | 14.08 | -1.29 | 192 | -0.00 | 0.95 | 0.95 | ||
| 2027 | 15.61 | 14.17 | -1.44 | 180 | -0.00 | 1.02 | 1.02 | ||
| 2028 | 15.85 | 14.19 | -1.66 | 168 | -0.00 | 1.02 | 1.03 | ||
| 2029 | 16.06 | 14.20 | -1.86 | 156 | -0.00 | 1.02 | 1.03 | ||
| 2030 | 16.26 | 14.22 | -2.04 | 143 | -0.00 | 1.02 | 1.03 | ||
| 2031 | 16.44 | 14.23 | -2.21 | 131 | -0.01 | 1.02 | 1.03 | ||
| 2032 | 16.60 | 14.24 | -2.36 | 118 | -0.01 | 1.02 | 1.03 | ||
| 2033 | 16.73 | 14.25 | -2.48 | 105 | -0.01 | 1.02 | 1.03 | ||
| 2034 | 16.84 | 14.26 | -2.58 | 91 | -0.01 | 1.02 | 1.03 | ||
| 2035 | 16.92 | 14.26 | -2.65 | 76 | -0.01 | 1.02 | 1.03 | ||
| 2036 | 16.98 | 14.27 | -2.71 | 62 | -0.01 | 1.03 | 1.03 | ||
| 2037 | 17.01 | 14.27 | -2.74 | 47 | -0.01 | 1.03 | 1.04 | ||
| 2038 | 17.01 | 14.28 | -2.74 | 31 | -0.01 | 1.03 | 1.04 | ||
| 2039 | 16.99 | 14.28 | -2.71 | 16 | -0.01 | 1.03 | 1.04 | ||
| 2040 | 16.95 | 14.28 | -2.67 | 0 | -0.01 | 1.03 | 1.04 | ||
| 2041 | 16.90 | 14.27 | -2.63 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2042 | 16.85 | 14.27 | -2.58 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2043 | 16.79 | 14.27 | -2.52 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2044 | 16.74 | 14.27 | -2.48 | ---- | -0.02 | 1.03 | 1.04 | ||
| 2045 | 16.70 | 14.27 | -2.44 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2046 | 16.66 | 14.26 | -2.40 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2047 | 16.63 | 14.26 | -2.36 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2048 | 16.60 | 14.26 | -2.33 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2049 | 16.57 | 14.26 | -2.31 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2050 | 16.55 | 14.26 | -2.28 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2051 | 16.53 | 14.26 | -2.27 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2052 | 16.53 | 14.26 | -2.27 | ---- | -0.02 | 1.03 | 1.06 | ||
| 2053 | 16.54 | 14.27 | -2.28 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2054 | 16.56 | 14.27 | -2.30 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2055 | 16.59 | 14.27 | -2.32 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2056 | 16.63 | 14.27 | -2.35 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2057 | 16.67 | 14.28 | -2.39 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2058 | 16.71 | 14.28 | -2.43 | ---- | -0.03 | 1.03 | 1.06 | ||
| 2059 | 16.75 | 14.28 | -2.47 | ---- | -0.03 | 1.03 | 1.07 | ||
| 2060 | 16.80 | 14.29 | -2.51 | ---- | -0.03 | 1.03 | 1.07 | ||
| 2061 | 16.84 | 14.29 | -2.55 | ---- | -0.03 | 1.03 | 1.07 | ||
| 2062 | 16.89 | 14.29 | -2.59 | ---- | -0.04 | 1.04 | 1.07 | ||
| 2063 | 16.93 | 14.30 | -2.63 | ---- | -0.04 | 1.04 | 1.07 | ||
| 2064 | 16.98 | 14.30 | -2.68 | ---- | -0.04 | 1.04 | 1.07 | ||
| 2065 | 17.03 | 14.31 | -2.72 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2066 | 17.08 | 14.31 | -2.77 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2067 | 17.13 | 14.31 | -2.81 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2068 | 17.18 | 14.32 | -2.86 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2069 | 17.23 | 14.32 | -2.91 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2070 | 17.28 | 14.33 | -2.96 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2071 | 17.33 | 14.33 | -3.00 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2072 | 17.37 | 14.33 | -3.04 | ---- | -0.04 | 1.04 | 1.09 | ||
| 2073 | 17.40 | 14.34 | -3.07 | ---- | -0.05 | 1.04 | 1.09 | ||
| 2074 | 17.43 | 14.34 | -3.10 | ---- | -0.05 | 1.04 | 1.09 | ||
| 2075 | 17.46 | 14.34 | -3.12 | ---- | -0.05 | 1.04 | 1.09 | ||
| 2076 | 17.47 | 14.34 | -3.13 | ---- | -0.05 | 1.04 | 1.09 | ||
| 2077 | 17.48 | 14.34 | -3.13 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2078 | 17.48 | 14.34 | -3.13 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2079 | 17.47 | 14.35 | -3.13 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2080 | 17.46 | 14.35 | -3.12 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2081 | 17.46 | 14.35 | -3.11 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2082 | 17.46 | 14.35 | -3.11 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2083 | 17.47 | 14.35 | -3.12 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2084 | 17.48 | 14.35 | -3.13 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2085 | 17.50 | 14.35 | -3.15 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2086 | 17.53 | 14.35 | -3.18 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2087 | 17.57 | 14.36 | -3.21 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2088 | 17.61 | 14.36 | -3.25 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2089 | 17.65 | 14.36 | -3.29 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2090 | 17.70 | 14.37 | -3.33 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2091 | 17.75 | 14.37 | -3.38 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2092 | 17.79 | 14.37 | -3.42 | ---- | -0.05 | 1.06 | 1.10 | ||
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% | 14.79% | -1.85% | 2040 | -0.02% | 0.95% | 0.98% | ||
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.