Description of Proposed Provision:
E3.14: Eliminate the taxable maximum for the employer payroll tax (6.2 percent) beginning in 2020. For the employee payroll tax (6.2 percent) and for benefit credit purposes, beginning in 2020, increase the taxable maximum by an additional 2 percent per year until taxable earnings equal 90 percent of covered earnings.

Estimates based on the intermediate assumptions of the 2019 Trustees Report

Summary Measures
Current law
[percent of payroll]
  Change from current law
[percent of payroll]
  Shortfall eliminated
Long-range
actuarial
balance
Annual
balance in
75th year
  Long-range
actuarial
balance
Annual
balance in
75th year
  Long-range
actuarial
balance
Annual
balance in
75th year
-2.78 -4.11   1.41 1.30   51% 32%

graph of OASDI cost rates and income rates by year, under
                 current law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under current law
                 and provision. click on graph to view underlying data.