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

Year Present Law Provision
2016303303
2017293293
2018277277
2019262262
2020246247
2021231232
2022216217
2023200201
2024183185
2025165168
2026149152
2027132136
2028115120
202998104
20308187
20316471
20324654
20332737
2034819
2035-112
2036-30-16
2037-50-35
2038-71-53
2039-91-72
2040-112-91
2041-133-110
2042-154-129
2043-176-148
2044-197-167
2045-218-186
2046-240-205
2047-262-224
2048-283-243
2049-305-261
2050-327-280
2051-349-299
2052-371-317
2053-393-335
2054-415-353
2055-437-371
2056-460-389
2057-482-408
2058-506-426
2059-529-444
2060-553-463
2061-578-482
2062-603-501
2063-628-521
2064-654-540
2065-680-560
2066-706-581
2067-733-601
2068-760-622
2069-788-644
2070-816-665
2071-845-688
2072-874-711
2073-905-734
2074-935-758
2075-967-782
2076-1000-807
2077-1033-833
2078-1068-859
2079-1102-886
2080-1138-914
2081-1173-941
2082-1208-969
2083-1243-996
2084-1279-1024
2085-1314-1051
2086-1349-1079
2087-1384-1107
2088-1419-1134
2089-1455-1162
2090-1491-1190
2091-1528-1219
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