Description of Proposed Provision:
E2.13: Apply OASDI 12.4 percent payroll tax rate on earnings above $400,000 starting in 2020, and tax all earnings once the current-law taxable maximum exceeds $400,000. 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 2019 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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1213.83-0.29
256
0.000.940.94
202114.2713.95-0.32
246
-0.001.031.03
202214.4414.01-0.43
236
-0.001.061.07
202314.6214.06-0.56
225
-0.001.101.10
202414.8014.12-0.68
215
-0.001.131.13
202514.9814.17-0.81
204
-0.001.161.16
202615.1614.32-0.84
193
-0.001.191.19
202715.3614.37-0.99
183
-0.001.221.22
202815.5814.43-1.15
173
-0.001.261.26
202915.7914.48-1.31
163
-0.001.301.30
203015.9814.54-1.44
153
-0.001.341.34
203116.1614.59-1.57
143
-0.001.381.38
203216.3214.65-1.67
134
-0.001.421.42
203316.4514.70-1.75
124
0.001.461.46
203416.5714.75-1.81
115
0.001.511.51
203516.6514.81-1.84
105
0.001.551.55
203616.7214.86-1.86
95
0.001.601.60
203716.7914.92-1.87
85
0.001.651.65
203816.8214.98-1.85
74
0.001.711.70
203916.8315.03-1.80
65
0.001.761.76
204016.8315.09-1.74
55
0.001.821.82
204116.8115.15-1.66
45
0.001.881.87
204216.7815.21-1.57
36
0.001.941.94
204316.7415.28-1.46
28
0.002.012.00
204416.7015.34-1.36
20
0.002.072.07
204516.6715.41-1.25
12
0.012.142.14
204616.6315.49-1.15
5
0.012.222.21
204716.6115.56-1.04
----
0.012.302.29
204816.5815.59-0.99
----
0.012.322.32
204916.5615.59-0.97
----
0.012.322.32
205016.5515.59-0.96
----
0.012.332.32
205116.5415.59-0.95
----
0.012.332.32
205216.5415.60-0.95
----
0.012.332.32
205316.5515.60-0.95
----
0.012.332.32
205416.5715.60-0.97
----
0.012.332.32
205516.6015.61-0.99
----
0.012.332.32
205616.6315.61-1.03
----
0.012.332.32
205716.6815.61-1.06
----
0.012.332.32
205816.7215.62-1.10
----
0.012.332.32
205916.7715.62-1.15
----
0.012.332.32
206016.8215.63-1.19
----
0.012.332.32
206116.8715.63-1.24
----
0.012.342.32
206216.9215.64-1.28
----
0.012.342.32
206316.9815.64-1.33
----
0.012.342.32
206417.0315.65-1.38
----
0.012.342.32
206517.0815.65-1.43
----
0.012.342.32
206617.1415.66-1.48
----
0.012.342.33
206717.2015.66-1.53
----
0.022.342.33
206817.2615.67-1.59
----
0.022.342.33
206917.3215.68-1.64
----
0.022.342.33
207017.3815.68-1.70
----
0.022.352.33
207117.4415.69-1.75
----
0.022.352.33
207217.4915.69-1.80
----
0.022.352.33
207317.5315.70-1.84
----
0.022.352.33
207417.5715.70-1.87
----
0.022.352.33
207517.6015.70-1.90
----
0.022.352.33
207617.6315.71-1.92
----
0.022.352.33
207717.6415.71-1.93
----
0.022.352.34
207817.6415.71-1.93
----
0.022.362.34
207917.6415.71-1.92
----
0.022.362.34
208017.6215.71-1.91
----
0.022.362.34
208117.6115.71-1.89
----
0.022.362.34
208217.5915.71-1.88
----
0.022.362.34
208317.5715.71-1.86
----
0.022.362.34
208417.5615.71-1.84
----
0.022.362.34
208517.5515.72-1.83
----
0.022.362.35
208617.5515.72-1.83
----
0.022.372.35
208717.5515.72-1.83
----
0.022.372.35
208817.5715.72-1.85
----
0.022.372.35
208917.5915.72-1.87
----
0.022.372.35
209017.6215.73-1.89
----
0.022.372.35
209117.6615.73-1.93
----
0.022.372.35
209217.7015.73-1.97
----
0.022.372.35
209317.7515.74-2.01
----
0.022.382.35


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 16.69% 15.75% -0.94%
2046
0.01% 1.91% 1.90%

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