Description of Proposed Provision:
E3.11: Beginning in 2025, apply 2 percent payroll tax rate on earnings over the wage-indexed equivalent of $300,000 in 2017 (about $411,600 in 2025), with the threshold wage-indexed after 2025. 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 | 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 | 12.96 | -0.89 | 259 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.02 | 12.99 | -1.03 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.26 | 13.02 | -1.23 | 230 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.54 | 13.05 | -1.50 | 215 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.83 | 13.08 | -1.74 | 199 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 15.10 | 13.30 | -1.80 | 182 | 0.00 | 0.20 | 0.20 | ||
| 2026 | 15.37 | 13.34 | -2.03 | 167 | -0.00 | 0.21 | 0.21 | ||
| 2027 | 15.62 | 13.36 | -2.26 | 150 | -0.00 | 0.21 | 0.21 | ||
| 2028 | 15.85 | 13.37 | -2.48 | 134 | -0.00 | 0.21 | 0.21 | ||
| 2029 | 16.07 | 13.39 | -2.68 | 117 | -0.00 | 0.21 | 0.21 | ||
| 2030 | 16.27 | 13.40 | -2.86 | 100 | -0.00 | 0.21 | 0.21 | ||
| 2031 | 16.45 | 13.42 | -3.03 | 83 | -0.00 | 0.21 | 0.21 | ||
| 2032 | 16.61 | 13.43 | -3.18 | 65 | -0.00 | 0.21 | 0.21 | ||
| 2033 | 16.74 | 13.44 | -3.30 | 47 | -0.00 | 0.21 | 0.21 | ||
| 2034 | 16.85 | 13.44 | -3.40 | 28 | -0.00 | 0.21 | 0.21 | ||
| 2035 | 16.93 | 13.45 | -3.48 | 8 | -0.00 | 0.21 | 0.21 | ||
| 2036 | 16.99 | 13.45 | -3.53 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2037 | 17.02 | 13.46 | -3.56 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2038 | 17.02 | 13.46 | -3.56 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2039 | 17.00 | 13.46 | -3.54 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2040 | 16.96 | 13.46 | -3.50 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2041 | 16.91 | 13.45 | -3.46 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2042 | 16.86 | 13.45 | -3.41 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2043 | 16.80 | 13.45 | -3.35 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2044 | 16.76 | 13.45 | -3.31 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2045 | 16.72 | 13.45 | -3.27 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2046 | 16.68 | 13.44 | -3.23 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2047 | 16.64 | 13.44 | -3.20 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2048 | 16.61 | 13.44 | -3.17 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2049 | 16.59 | 13.44 | -3.14 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2050 | 16.56 | 13.44 | -3.12 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2051 | 16.55 | 13.44 | -3.11 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2052 | 16.55 | 13.44 | -3.11 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2053 | 16.56 | 13.44 | -3.12 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2054 | 16.58 | 13.44 | -3.14 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2055 | 16.61 | 13.45 | -3.17 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2056 | 16.65 | 13.45 | -3.20 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2057 | 16.69 | 13.45 | -3.24 | ---- | -0.00 | 0.21 | 0.21 | ||
| 2058 | 16.73 | 13.46 | -3.28 | ---- | -0.01 | 0.21 | 0.21 | ||
| 2059 | 16.78 | 13.46 | -3.32 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2060 | 16.82 | 13.46 | -3.36 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2061 | 16.87 | 13.47 | -3.40 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2062 | 16.92 | 13.47 | -3.45 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2063 | 16.96 | 13.47 | -3.49 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2064 | 17.01 | 13.48 | -3.54 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2065 | 17.06 | 13.48 | -3.58 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2066 | 17.11 | 13.48 | -3.63 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2067 | 17.16 | 13.49 | -3.68 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2068 | 17.21 | 13.49 | -3.73 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2069 | 17.27 | 13.49 | -3.78 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2070 | 17.32 | 13.50 | -3.82 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2071 | 17.36 | 13.50 | -3.87 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2072 | 17.41 | 13.50 | -3.90 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2073 | 17.44 | 13.50 | -3.94 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2074 | 17.47 | 13.51 | -3.96 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2075 | 17.50 | 13.51 | -3.99 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2076 | 17.51 | 13.51 | -4.00 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2077 | 17.52 | 13.51 | -4.01 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2078 | 17.52 | 13.51 | -4.00 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2079 | 17.51 | 13.51 | -4.00 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2080 | 17.50 | 13.51 | -3.99 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2081 | 17.50 | 13.51 | -3.99 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2082 | 17.50 | 13.51 | -3.99 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2083 | 17.50 | 13.51 | -3.99 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2084 | 17.52 | 13.51 | -4.01 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2085 | 17.54 | 13.51 | -4.03 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2086 | 17.57 | 13.51 | -4.06 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2087 | 17.61 | 13.52 | -4.09 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2088 | 17.65 | 13.52 | -4.13 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2089 | 17.69 | 13.52 | -4.17 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2090 | 17.74 | 13.53 | -4.21 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2091 | 17.79 | 13.53 | -4.26 | ---- | -0.01 | 0.21 | 0.22 | ||
| 2092 | 17.83 | 13.53 | -4.30 | ---- | -0.01 | 0.21 | 0.22 | ||
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% | 14.02% | -2.64% | 2035 | -0.00% | 0.18% | 0.19% | ||
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.