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 2019-2028). 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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 13.01 | -0.95 | 272 | 0.00 | 0.13 | 0.13 | ||
| 2020 | 14.12 | 13.17 | -0.96 | 257 | -0.00 | 0.27 | 0.27 | ||
| 2021 | 14.27 | 13.32 | -0.95 | 242 | -0.00 | 0.40 | 0.40 | ||
| 2022 | 14.44 | 13.46 | -0.98 | 228 | -0.00 | 0.51 | 0.51 | ||
| 2023 | 14.62 | 13.58 | -1.04 | 214 | -0.00 | 0.61 | 0.62 | ||
| 2024 | 14.80 | 13.70 | -1.10 | 201 | -0.00 | 0.71 | 0.71 | ||
| 2025 | 14.98 | 13.80 | -1.18 | 188 | -0.00 | 0.80 | 0.80 | ||
| 2026 | 15.16 | 14.01 | -1.15 | 175 | -0.00 | 0.88 | 0.88 | ||
| 2027 | 15.36 | 14.10 | -1.26 | 164 | -0.00 | 0.95 | 0.95 | ||
| 2028 | 15.58 | 14.19 | -1.39 | 152 | -0.00 | 1.02 | 1.02 | ||
| 2029 | 15.79 | 14.21 | -1.57 | 141 | -0.00 | 1.03 | 1.03 | ||
| 2030 | 15.98 | 14.23 | -1.75 | 130 | -0.00 | 1.03 | 1.03 | ||
| 2031 | 16.16 | 14.24 | -1.91 | 118 | -0.00 | 1.03 | 1.03 | ||
| 2032 | 16.31 | 14.25 | -2.06 | 107 | -0.01 | 1.03 | 1.03 | ||
| 2033 | 16.45 | 14.27 | -2.18 | 95 | -0.01 | 1.03 | 1.03 | ||
| 2034 | 16.56 | 14.27 | -2.28 | 82 | -0.01 | 1.03 | 1.03 | ||
| 2035 | 16.64 | 14.28 | -2.36 | 69 | -0.01 | 1.03 | 1.04 | ||
| 2036 | 16.71 | 14.29 | -2.43 | 56 | -0.01 | 1.03 | 1.04 | ||
| 2037 | 16.78 | 14.29 | -2.48 | 42 | -0.01 | 1.03 | 1.04 | ||
| 2038 | 16.81 | 14.30 | -2.51 | 28 | -0.01 | 1.03 | 1.04 | ||
| 2039 | 16.82 | 14.30 | -2.52 | 14 | -0.01 | 1.03 | 1.04 | ||
| 2040 | 16.82 | 14.30 | -2.51 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2041 | 16.80 | 14.31 | -2.49 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2042 | 16.76 | 14.30 | -2.46 | ---- | -0.01 | 1.03 | 1.04 | ||
| 2043 | 16.72 | 14.30 | -2.42 | ---- | -0.01 | 1.03 | 1.05 | ||
| 2044 | 16.68 | 14.30 | -2.38 | ---- | -0.01 | 1.03 | 1.05 | ||
| 2045 | 16.64 | 14.30 | -2.34 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2046 | 16.61 | 14.30 | -2.31 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2047 | 16.58 | 14.30 | -2.28 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2048 | 16.56 | 14.30 | -2.26 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2049 | 16.54 | 14.30 | -2.23 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2050 | 16.52 | 14.30 | -2.22 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2051 | 16.51 | 14.30 | -2.21 | ---- | -0.02 | 1.03 | 1.06 | ||
| 2052 | 16.51 | 14.30 | -2.21 | ---- | -0.02 | 1.03 | 1.06 | ||
| 2053 | 16.52 | 14.31 | -2.21 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2054 | 16.54 | 14.31 | -2.23 | ---- | -0.03 | 1.04 | 1.06 | ||
| 2055 | 16.56 | 14.31 | -2.25 | ---- | -0.03 | 1.04 | 1.06 | ||
| 2056 | 16.60 | 14.32 | -2.28 | ---- | -0.03 | 1.04 | 1.06 | ||
| 2057 | 16.64 | 14.32 | -2.32 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2058 | 16.68 | 14.32 | -2.36 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2059 | 16.73 | 14.33 | -2.40 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2060 | 16.78 | 14.33 | -2.44 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2061 | 16.82 | 14.34 | -2.49 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2062 | 16.87 | 14.34 | -2.53 | ---- | -0.04 | 1.04 | 1.07 | ||
| 2063 | 16.93 | 14.35 | -2.58 | ---- | -0.04 | 1.04 | 1.07 | ||
| 2064 | 16.98 | 14.35 | -2.63 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2065 | 17.03 | 14.35 | -2.68 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2066 | 17.09 | 14.36 | -2.73 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2067 | 17.14 | 14.36 | -2.78 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2068 | 17.20 | 14.37 | -2.83 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2069 | 17.26 | 14.37 | -2.89 | ---- | -0.04 | 1.04 | 1.08 | ||
| 2070 | 17.32 | 14.38 | -2.94 | ---- | -0.04 | 1.04 | 1.09 | ||
| 2071 | 17.38 | 14.38 | -2.99 | ---- | -0.04 | 1.04 | 1.09 | ||
| 2072 | 17.42 | 14.39 | -3.04 | ---- | -0.04 | 1.04 | 1.09 | ||
| 2073 | 17.47 | 14.39 | -3.08 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2074 | 17.51 | 14.40 | -3.11 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2075 | 17.54 | 14.40 | -3.14 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2076 | 17.56 | 14.40 | -3.16 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2077 | 17.58 | 14.40 | -3.17 | ---- | -0.05 | 1.05 | 1.09 | ||
| 2078 | 17.58 | 14.40 | -3.17 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2079 | 17.57 | 14.41 | -3.17 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2080 | 17.56 | 14.41 | -3.15 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2081 | 17.54 | 14.41 | -3.14 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2082 | 17.52 | 14.40 | -3.12 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2083 | 17.51 | 14.40 | -3.10 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2084 | 17.49 | 14.40 | -3.09 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2085 | 17.48 | 14.40 | -3.08 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2086 | 17.48 | 14.40 | -3.08 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2087 | 17.48 | 14.41 | -3.08 | ---- | -0.05 | 1.05 | 1.10 | ||
| 2088 | 17.50 | 14.41 | -3.09 | ---- | -0.05 | 1.06 | 1.10 | ||
| 2089 | 17.52 | 14.41 | -3.11 | ---- | -0.05 | 1.06 | 1.10 | ||
| 2090 | 17.55 | 14.41 | -3.14 | ---- | -0.05 | 1.06 | 1.10 | ||
| 2091 | 17.59 | 14.41 | -3.17 | ---- | -0.05 | 1.06 | 1.10 | ||
| 2092 | 17.63 | 14.42 | -3.21 | ---- | -0.05 | 1.06 | 1.11 | ||
| 2093 | 17.68 | 14.42 | -3.25 | ---- | -0.05 | 1.06 | 1.11 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 16.66% | 14.80% | -1.86% | 2039 | -0.02% | 0.96% | 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 2018 Trustees Report.