Proposed Provision: F3. Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2023, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2023, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2023 exclusion level until fully eliminated in 2032. Eliminate the excise tax on ESI premiums starting in 2023.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2019273273
2020260260
2021245245
2022229229
2023213213
2024197198
2025180183
2026163169
2027147157
2028130145
2029114134
203097124
203180114
203263106
20334698
20342890
20351081
2036-972
2037-2863
2038-4754
2039-6744
2040-8734
2041-10823
2042-12913
2043-1502
2044-171-8
2045-192-19
2046-213-29
2047-234-40
2048-255-51
2049-276-62
2050-297-73
2051-318-84
2052-338-96
2053-359-107
2054-380-119
2055-401-131
2056-422-144
2057-444-156
2058-465-169
2059-487-183
2060-509-197
2061-531-212
2062-554-226
2063-577-242
2064-601-258
2065-625-274
2066-649-291
2067-674-308
2068-699-326
2069-724-344
2070-749-363
2071-776-382
2072-802-401
2073-830-421
2074-857-442
2075-885-463
2076-914-484
2077-944-506
2078-975-529
2079-1007-552
2080-1039-576
2081-1072-600
2082-1106-624
2083-1139-649
2084-1173-673
2085-1207-698
2086-1242-722
2087-1275-746
2088-1309-770
2089-1342-794
2090-1375-817
2091-1407-841
2092-1439-864
2093-1471-887
2094-1503-910
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