Description of Proposed Provision:
E2.11: Eliminate the taxable maximum in years 2023 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 2.48 percent in 2019, 4.96 percent in 2020, and so on, up to 12.40 percent in 2023. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2017 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 5 percent on this newly computed "AIME+".

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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.000.00
201913.7013.42-0.28
273
0.000.470.47
202013.8513.920.07
262
-0.000.960.96
202114.0114.420.40
255
-0.001.431.43
202214.2514.890.64
249
-0.001.871.87
202314.5415.340.80
246
-0.002.292.29
202414.8215.390.57
244
-0.002.312.31
202515.1015.410.32
242
0.002.312.31
202615.3715.440.07
238
0.002.312.31
202715.6215.46-0.16
233
0.012.312.30
202815.8615.48-0.38
228
0.012.312.30
202916.0815.49-0.58
223
0.012.312.30
203016.2815.51-0.77
218
0.022.312.30
203116.4715.52-0.95
213
0.022.322.29
203216.6315.54-1.10
207
0.032.322.29
203316.7715.55-1.23
202
0.032.322.29
203416.8915.55-1.33
195
0.042.322.28
203516.9715.56-1.41
189
0.042.322.28
203617.0415.57-1.47
182
0.052.322.27
203717.0715.57-1.50
175
0.052.322.27
203817.0815.57-1.51
168
0.062.332.27
203917.0615.58-1.49
162
0.062.332.26
204017.0315.58-1.45
155
0.072.332.26
204116.9915.58-1.41
149
0.072.332.26
204216.9415.57-1.37
142
0.082.332.25
204316.8915.57-1.32
136
0.092.332.25
204416.8515.57-1.28
130
0.092.332.24
204516.8215.57-1.24
124
0.102.342.24
204616.7815.57-1.21
119
0.102.342.23
204716.7515.57-1.18
113
0.112.342.23
204816.7315.57-1.16
107
0.112.342.23
204916.7115.57-1.13
102
0.122.342.22
205016.6915.57-1.12
96
0.122.342.22
205116.6915.58-1.11
91
0.132.342.21
205216.6915.58-1.11
85
0.142.352.21
205316.7115.58-1.13
80
0.142.352.21
205416.7315.58-1.15
74
0.152.352.20
205516.7715.59-1.18
68
0.152.352.20
205616.8115.59-1.22
62
0.162.352.19
205716.8615.60-1.26
55
0.162.352.19
205816.9115.60-1.31
48
0.172.352.19
205916.9615.61-1.35
41
0.172.362.18
206017.0115.61-1.40
34
0.182.362.18
206117.0615.62-1.44
26
0.182.362.18
206217.1115.62-1.49
18
0.192.362.17
206317.1615.62-1.54
10
0.192.362.17
206417.2115.63-1.58
1
0.202.362.17
206517.2715.63-1.63
----
0.202.372.17
206617.3215.64-1.68
----
0.202.372.16
206717.3715.64-1.73
----
0.212.372.16
206817.4315.65-1.78
----
0.212.372.16
206917.4915.65-1.83
----
0.212.372.16
207017.5415.66-1.88
----
0.222.372.16
207117.5915.66-1.93
----
0.222.372.16
207217.6315.67-1.97
----
0.222.382.16
207317.6715.67-2.00
----
0.222.382.15
207417.7015.67-2.03
----
0.232.382.15
207517.7315.68-2.05
----
0.232.382.15
207617.7515.68-2.07
----
0.232.382.15
207717.7515.68-2.07
----
0.232.382.15
207817.7515.68-2.07
----
0.232.392.15
207917.7515.68-2.06
----
0.232.392.15
208017.7415.69-2.06
----
0.232.392.16
208117.7415.69-2.05
----
0.232.392.16
208217.7415.69-2.05
----
0.232.392.16
208317.7515.69-2.06
----
0.232.392.16
208417.7615.69-2.07
----
0.242.392.16
208517.7915.69-2.09
----
0.242.392.16
208617.8215.70-2.12
----
0.242.402.16
208717.8515.70-2.15
----
0.242.402.16
208817.9015.70-2.19
----
0.242.402.16
208917.9415.71-2.23
----
0.242.402.16
209017.9915.71-2.28
----
0.242.402.16
209118.0415.72-2.32
----
0.242.402.16
209218.0915.72-2.36
----
0.242.402.16


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 16.78% 16.04% -0.74%
2064
0.12% 2.20% 2.09%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.