Description of Proposed Provision:
E2.3: Eliminate the taxable maximum in years 2019 and later, and apply full 12.4 percent payroll tax rate to all earnings. 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
201913.9515.061.11
272
0.002.192.19
202014.1215.251.13
271
-0.002.362.36
202114.2715.281.01
270
-0.002.362.36
202214.4415.300.86
268
0.002.362.35
202314.6315.320.69
265
0.012.352.34
202414.8215.340.52
261
0.022.352.33
202515.0115.350.34
257
0.022.342.31
202615.1915.460.27
252
0.032.322.29
202715.4115.470.06
247
0.042.312.27
202815.6415.49-0.15
242
0.052.312.26
202915.8615.50-0.35
237
0.062.322.25
203016.0615.52-0.54
232
0.072.322.24
203116.2415.54-0.71
227
0.082.322.23
203216.4115.55-0.86
222
0.102.322.23
203316.5615.56-1.00
218
0.112.322.22
203416.6815.57-1.11
213
0.122.332.21
203516.7815.58-1.19
208
0.122.332.20
203616.8615.59-1.27
202
0.132.332.20
203716.9315.60-1.33
196
0.142.332.19
203816.9715.60-1.37
191
0.152.332.18
203916.9915.61-1.38
185
0.162.332.18
204016.9915.61-1.38
179
0.162.342.17
204116.9815.61-1.37
173
0.172.342.17
204216.9515.61-1.34
167
0.172.342.17
204316.9115.61-1.30
161
0.182.342.16
204416.8815.61-1.26
156
0.182.342.16
204516.8415.61-1.23
150
0.182.342.16
204616.8215.61-1.20
145
0.192.342.16
204716.7915.61-1.18
140
0.192.352.15
204816.7715.61-1.16
135
0.192.352.15
204916.7515.61-1.13
129
0.192.352.15
205016.7415.62-1.12
124
0.202.352.15
205116.7315.62-1.11
119
0.202.352.15
205216.7315.62-1.11
114
0.202.352.15
205316.7415.62-1.12
108
0.202.352.15
205416.7615.63-1.14
103
0.202.352.15
205516.7915.63-1.16
97
0.202.352.15
205616.8315.63-1.19
91
0.202.352.15
205716.8715.64-1.23
85
0.202.352.15
205816.9215.64-1.27
79
0.202.362.15
205916.9715.65-1.32
72
0.212.362.15
206017.0215.65-1.36
65
0.212.362.15
206117.0715.66-1.41
58
0.212.362.15
206217.1215.66-1.46
50
0.212.362.15
206317.1715.67-1.50
43
0.212.362.15
206417.2215.67-1.55
34
0.212.362.15
206517.2815.68-1.60
26
0.212.362.15
206617.3415.68-1.65
17
0.212.362.15
206717.4015.69-1.71
8
0.212.372.15
206817.4615.69-1.76
----
0.212.372.15
206917.5215.70-1.82
----
0.212.372.15
207017.5815.70-1.87
----
0.222.372.15
207117.6415.71-1.93
----
0.222.372.15
207217.6915.71-1.97
----
0.222.372.15
207317.7315.72-2.01
----
0.222.372.16
207417.7715.72-2.05
----
0.222.372.16
207517.8115.73-2.08
----
0.222.382.16
207617.8315.73-2.10
----
0.222.382.16
207717.8415.73-2.11
----
0.222.382.16
207817.8515.74-2.11
----
0.222.382.16
207917.8415.74-2.10
----
0.222.382.16
208017.8315.74-2.09
----
0.222.382.16
208117.8115.74-2.07
----
0.222.382.16
208217.7915.74-2.05
----
0.222.382.16
208317.7815.74-2.04
----
0.222.392.17
208417.7615.74-2.02
----
0.222.392.17
208517.7515.74-2.01
----
0.222.392.17
208617.7515.74-2.01
----
0.222.392.17
208717.7515.74-2.01
----
0.222.392.17
208817.7715.74-2.02
----
0.222.392.17
208917.7915.75-2.04
----
0.222.392.17
209017.8215.75-2.07
----
0.222.402.17
209117.8615.75-2.11
----
0.222.402.17
209217.9015.76-2.15
----
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 16.84% 16.16% -0.68%
2067
0.16% 2.32% 2.16%

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