Description of Proposed Provision:
E2.12: Eliminate the taxable maximum in years 2030 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2021, 2.48 percent in 2022, and so on, up to 12.40 percent in 2030. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at the current-law taxable maximum with a 3 percent formula factor applying above the new bend point.

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
202114.2713.16-1.11
239
0.000.240.24
202214.4413.44-1.00
224
-0.000.490.49
202314.6213.70-0.92
210
-0.000.730.73
202414.8013.97-0.84
198
-0.000.970.97
202514.9814.21-0.77
187
0.001.201.20
202615.1614.56-0.60
177
0.001.431.42
202715.3714.80-0.57
168
0.011.641.64
202815.5915.04-0.55
161
0.011.871.86
202915.8115.27-0.53
155
0.012.082.07
203016.0015.50-0.50
150
0.022.302.28
203116.1915.53-0.66
146
0.032.312.29
203216.3515.54-0.81
142
0.032.312.28
203316.4915.55-0.94
137
0.042.322.27
203416.6215.56-1.05
132
0.052.322.27
203516.7115.57-1.14
127
0.062.322.26
203616.7915.58-1.21
121
0.072.322.25
203716.8615.59-1.27
115
0.082.322.24
203816.9115.60-1.31
109
0.092.332.24
203916.9315.60-1.33
102
0.102.332.23
204016.9315.60-1.33
96
0.112.332.22
204116.9215.60-1.32
89
0.112.332.22
204216.9015.60-1.29
83
0.122.332.21
204316.8715.61-1.26
76
0.132.332.20
204416.8315.61-1.23
70
0.142.342.20
204516.8115.61-1.20
64
0.152.342.19
204616.7815.61-1.17
58
0.152.342.19
204716.7615.61-1.15
51
0.162.342.18
204816.7415.61-1.13
45
0.172.342.18
204916.7315.61-1.12
39
0.172.342.17
205016.7215.61-1.11
33
0.182.352.17
205116.7215.62-1.10
27
0.192.352.16
205216.7315.62-1.11
21
0.192.352.16
205316.7415.62-1.12
15
0.202.352.15
205416.7615.62-1.14
9
0.202.352.15
205516.8015.63-1.17
2
0.212.352.15
205616.8415.63-1.20
----
0.212.352.14
205716.8815.64-1.24
----
0.222.362.14
205816.9315.64-1.29
----
0.222.362.14
205916.9815.65-1.34
----
0.222.362.13
206017.0415.65-1.38
----
0.232.362.13
206117.0915.66-1.43
----
0.232.362.13
206217.1415.67-1.48
----
0.232.362.13
206317.2015.67-1.53
----
0.242.362.13
206417.2515.68-1.58
----
0.242.362.13
206517.3115.68-1.63
----
0.242.372.13
206617.3715.69-1.68
----
0.242.372.13
206717.4215.69-1.73
----
0.242.372.13
206817.4815.70-1.79
----
0.242.372.13
206917.5515.70-1.84
----
0.242.372.13
207017.6115.71-1.90
----
0.242.372.13
207117.6615.71-1.95
----
0.242.372.13
207217.7115.72-1.99
----
0.242.372.13
207317.7515.72-2.03
----
0.242.382.13
207417.7915.73-2.07
----
0.242.382.14
207517.8315.73-2.10
----
0.242.382.14
207617.8515.73-2.12
----
0.242.382.14
207717.8615.74-2.13
----
0.242.382.14
207817.8615.74-2.13
----
0.242.382.14
207917.8615.74-2.12
----
0.242.382.15
208017.8415.74-2.10
----
0.242.382.15
208117.8215.74-2.08
----
0.232.382.15
208217.8015.74-2.06
----
0.232.392.15
208317.7915.74-2.05
----
0.232.392.16
208417.7715.74-2.03
----
0.232.392.16
208517.7615.74-2.02
----
0.232.392.16
208617.7615.74-2.02
----
0.232.392.16
208717.7615.74-2.02
----
0.232.392.16
208817.7715.74-2.03
----
0.232.392.17
208917.8015.75-2.05
----
0.232.392.17
209017.8315.75-2.08
----
0.232.402.17
209117.8615.75-2.11
----
0.232.402.17
209217.9115.76-2.15
----
0.232.402.17
209317.9515.76-2.19
----
0.232.402.17


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 16.83% 15.92% -0.91%
2055
0.14% 2.08% 1.93%

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