Description of Proposed Provision:
E2.14: Apply OASDI payroll tax rate on earnings above $250,000 starting in 2019, and tax all earnings once the current-law taxable maximum exceeds $250,000. 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 2018 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 2 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
201913.7014.260.56
273
0.001.311.31
202013.8514.400.55
268
-0.001.441.44
202114.0114.480.47
264
-0.001.491.50
202214.2514.570.31
259
-0.001.541.55
202314.5414.630.09
253
-0.001.591.59
202414.8214.72-0.11
246
-0.001.631.64
202515.1014.79-0.31
239
-0.001.681.69
202615.3714.87-0.50
231
-0.001.741.74
202715.6214.94-0.67
223
-0.001.791.79
202815.8515.02-0.83
215
-0.001.851.85
202916.0715.09-0.97
208
0.001.911.91
203016.2715.17-1.09
200
0.001.981.98
203116.4515.25-1.20
193
0.002.052.04
203216.6115.34-1.27
187
0.002.122.11
203316.7415.42-1.32
180
0.002.192.19
203416.8515.50-1.35
173
0.002.272.27
203516.9315.55-1.38
166
0.012.312.31
203616.9915.56-1.43
160
0.012.322.31
203717.0315.57-1.46
153
0.012.322.31
203817.0315.57-1.46
146
0.012.322.31
203917.0115.57-1.44
139
0.012.322.31
204016.9715.57-1.40
133
0.012.322.31
204116.9315.57-1.36
126
0.012.322.31
204216.8715.57-1.31
120
0.012.322.31
204316.8215.56-1.26
114
0.012.322.31
204416.7715.56-1.21
108
0.012.332.31
204516.7315.56-1.17
102
0.022.332.31
204616.7015.56-1.13
97
0.022.332.31
204716.6615.56-1.10
91
0.022.332.31
204816.6315.56-1.07
86
0.022.332.31
204916.6115.56-1.05
81
0.022.332.31
205016.5915.56-1.03
76
0.022.332.31
205116.5815.56-1.01
70
0.022.332.31
205216.5815.56-1.01
65
0.022.332.31
205316.5915.57-1.02
60
0.022.332.31
205416.6115.57-1.04
54
0.022.332.31
205516.6415.57-1.07
49
0.022.342.31
205616.6815.58-1.10
43
0.022.342.31
205716.7215.58-1.14
37
0.032.342.31
205816.7715.58-1.18
31
0.032.342.31
205916.8115.59-1.22
24
0.032.342.31
206016.8615.59-1.26
17
0.032.342.31
206116.9015.60-1.31
10
0.032.342.31
206216.9515.60-1.35
3
0.032.342.31
206317.0015.61-1.39
----
0.032.342.31
206417.0515.61-1.44
----
0.032.342.31
206517.1015.61-1.48
----
0.032.352.32
206617.1515.62-1.53
----
0.032.352.32
206717.2015.62-1.58
----
0.032.352.32
206817.2515.63-1.63
----
0.032.352.32
206917.3115.63-1.67
----
0.032.352.32
207017.3615.64-1.72
----
0.032.352.32
207117.4115.64-1.76
----
0.032.352.32
207217.4515.64-1.80
----
0.032.352.32
207317.4815.65-1.83
----
0.032.362.32
207417.5115.65-1.86
----
0.032.362.32
207517.5415.66-1.88
----
0.032.362.32
207617.5515.66-1.90
----
0.032.362.32
207717.5615.66-1.90
----
0.032.362.33
207817.5615.66-1.90
----
0.042.362.33
207917.5515.66-1.89
----
0.042.362.33
208017.5515.66-1.88
----
0.042.362.33
208117.5415.66-1.88
----
0.042.372.33
208217.5415.66-1.88
----
0.042.372.33
208317.5515.67-1.88
----
0.042.372.33
208417.5615.67-1.90
----
0.042.372.33
208517.5915.67-1.92
----
0.042.372.33
208617.6215.67-1.94
----
0.042.372.34
208717.6515.68-1.98
----
0.042.372.34
208817.6915.68-2.01
----
0.042.382.34
208917.7415.69-2.05
----
0.042.382.34
209017.7915.69-2.10
----
0.042.382.34
209117.8415.69-2.14
----
0.042.382.34
209217.8815.70-2.18
----
0.042.382.34


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2017-2091 16.68% 15.96% -0.72%
2062
0.02% 2.13% 2.11%

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