Description of Proposed Provision:
E1.4: Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point each year from 2024-2043, until the rate reaches 14.4 percent in 2043 and later.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1212.89-1.23
256
0.000.000.00
202114.2712.92-1.35
239
0.000.000.00
202214.4412.95-1.49
223
0.000.000.00
202314.6212.97-1.66
206
0.000.000.00
202414.8013.08-1.72
188
0.000.090.09
202514.9813.19-1.79
172
-0.000.190.19
202615.1613.41-1.74
156
-0.000.280.28
202715.3613.53-1.83
141
-0.000.380.38
202815.5813.64-1.94
126
-0.000.470.47
202915.7913.75-2.04
112
-0.000.570.57
203015.9813.86-2.12
98
-0.000.660.66
203116.1613.97-2.19
85
-0.000.760.76
203216.3114.08-2.24
72
-0.000.850.85
203316.4514.18-2.27
59
-0.000.950.95
203416.5614.29-2.28
45
-0.001.041.04
203516.6514.39-2.26
32
-0.001.131.14
203616.7214.49-2.23
19
-0.001.231.23
203716.7814.59-2.19
7
-0.001.321.33
203816.8214.69-2.13
----
-0.011.421.42
203916.8314.78-2.04
----
-0.011.511.52
204016.8214.88-1.94
----
-0.011.611.61
204116.8014.97-1.83
----
-0.011.701.71
204216.7715.07-1.70
----
-0.011.791.80
204316.7315.16-1.57
----
-0.011.891.90
204416.6815.16-1.52
----
-0.011.891.91
204516.6515.16-1.48
----
-0.011.901.91
204616.6215.16-1.45
----
-0.011.901.91
204716.5915.16-1.42
----
-0.011.901.91
204816.5615.16-1.40
----
-0.011.901.91
204916.5415.16-1.38
----
-0.021.901.91
205016.5215.16-1.36
----
-0.021.901.91
205116.5115.17-1.35
----
-0.021.901.92
205216.5115.17-1.35
----
-0.021.901.92
205316.5215.17-1.35
----
-0.021.901.92
205416.5415.17-1.37
----
-0.021.901.92
205516.5615.17-1.39
----
-0.021.901.92
205616.6015.18-1.42
----
-0.031.901.92
205716.6415.18-1.46
----
-0.031.901.93
205816.6815.19-1.50
----
-0.031.901.93
205916.7315.19-1.54
----
-0.031.901.93
206016.7815.19-1.58
----
-0.031.901.93
206116.8215.20-1.63
----
-0.031.901.93
206216.8715.20-1.67
----
-0.041.901.94
206316.9215.21-1.72
----
-0.041.901.94
206416.9715.21-1.76
----
-0.041.901.94
206517.0315.22-1.81
----
-0.041.901.94
206617.0815.22-1.86
----
-0.041.901.95
206717.1415.22-1.91
----
-0.051.901.95
206817.2015.23-1.97
----
-0.051.901.95
206917.2515.23-2.02
----
-0.051.901.95
207017.3115.24-2.08
----
-0.051.901.95
207117.3715.24-2.13
----
-0.051.901.96
207217.4115.25-2.17
----
-0.051.901.96
207317.4615.25-2.21
----
-0.061.901.96
207417.5015.25-2.24
----
-0.061.901.96
207517.5315.26-2.27
----
-0.061.901.96
207617.5515.26-2.29
----
-0.061.911.97
207717.5615.26-2.30
----
-0.061.911.97
207817.5615.26-2.30
----
-0.061.911.97
207917.5615.26-2.29
----
-0.061.911.97
208017.5415.26-2.28
----
-0.061.911.97
208117.5215.26-2.26
----
-0.061.911.97
208217.5115.26-2.24
----
-0.071.911.97
208317.4915.26-2.23
----
-0.071.911.97
208417.4715.26-2.21
----
-0.071.911.98
208517.4615.26-2.20
----
-0.071.911.98
208617.4615.26-2.20
----
-0.071.911.98
208717.4615.26-2.20
----
-0.071.911.98
208817.4815.26-2.21
----
-0.071.911.98
208917.5015.26-2.23
----
-0.071.911.98
209017.5315.27-2.26
----
-0.071.911.98
209117.5715.27-2.30
----
-0.071.911.98
209217.6115.27-2.33
----
-0.071.911.98
209317.6515.28-2.38
----
-0.071.911.98


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
2018-2092 16.66% 15.26% -1.40%
2037
-0.03% 1.42% 1.45%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.