Proposed Provision: Starting in 2017, allow workers to choose whether to have their payroll tax rate reduced by 2 percentage points. For each calendar year that a worker chooses to have their payroll tax reduced, their normal retirement age (NRA) increases 1 month. We assume 2/3 of workers each year will choose this payroll reduction. The General Fund of the Treasury reimburses the OASI and DI Trust Funds for the reduction in payroll tax revenue.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201612.912.914.014.0
201712.912.913.713.7
201813.013.013.913.8
201913.013.014.014.0
202013.013.014.114.1
202113.013.014.314.2
202213.013.014.514.4
202313.113.114.814.7
202413.113.115.014.9
202513.113.115.315.2
202613.113.115.515.4
202713.113.115.615.5
202813.213.215.815.7
202913.213.216.015.8
203013.213.216.115.9
203113.213.216.216.0
203213.213.216.316.1
203313.213.216.416.2
203413.213.216.516.2
203513.213.216.516.2
203613.213.216.616.2
203713.213.216.616.2
203813.213.216.616.2
203913.213.216.616.2
204013.213.216.616.2
204113.213.216.616.1
204213.213.216.516.0
204313.213.216.516.0
204413.213.216.515.9
204513.213.216.415.9
204613.213.216.415.8
204713.213.216.415.7
204813.213.216.415.7
204913.213.216.415.6
205013.213.216.415.6
205113.213.216.415.5
205213.213.216.415.5
205313.213.216.415.5
205413.213.216.415.5
205513.213.216.515.5
205613.213.216.515.5
205713.313.216.615.5
205813.313.216.615.5
205913.313.216.715.6
206013.313.216.715.6
206113.313.216.815.6
206213.313.216.815.6
206313.313.216.915.7
206413.313.216.915.7
206513.313.217.015.8
206613.313.217.015.8
206713.313.217.115.9
206813.313.217.115.9
206913.313.217.215.9
207013.313.217.216.0
207113.313.217.316.0
207213.313.217.316.0
207313.313.217.316.1
207413.313.217.416.1
207513.313.317.416.1
207613.313.317.416.1
207713.313.317.416.1
207813.313.317.416.2
207913.313.317.416.1
208013.313.317.416.1
208113.313.317.416.1
208213.313.317.416.1
208313.313.317.416.2
208413.313.317.416.2
208513.313.317.516.2
208613.313.317.516.2
208713.313.317.516.2
208813.313.317.616.3
208913.313.317.616.3
209013.313.317.716.4
209113.313.317.716.4
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