Description of Proposed Provision:
E1.4: Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point each year from 2025-2044, until the rate reaches 14.4 percent in 2044 and later.

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
201913.9112.85-1.06
273
0.000.000.00
202013.9412.87-1.07
260
0.000.000.00
202114.0912.90-1.19
245
0.000.000.00
202214.2312.92-1.31
229
0.000.000.00
202314.4012.94-1.46
213
0.000.000.00
202414.5912.97-1.62
197
0.000.000.00
202514.7913.08-1.71
180
0.000.090.09
202614.9913.30-1.69
164
-0.000.190.19
202715.1913.41-1.78
149
-0.000.280.28
202815.4313.55-1.88
134
-0.000.380.38
202915.6213.66-1.96
120
-0.000.470.47
203015.8013.77-2.03
106
-0.000.570.57
203115.9613.88-2.09
92
-0.000.660.66
203216.1113.99-2.12
79
-0.000.760.76
203316.2314.09-2.14
66
-0.000.850.86
203416.3214.19-2.13
54
-0.000.950.95
203516.4014.29-2.10
42
-0.001.041.05
203616.4614.39-2.06
29
-0.001.141.14
203716.5114.49-2.02
17
-0.001.231.24
203816.5614.59-1.97
6
-0.001.331.33
203916.6014.69-1.91
----
-0.011.421.43
204016.6114.79-1.82
----
-0.011.521.52
204116.6014.88-1.72
----
-0.011.611.62
204216.5814.98-1.60
----
-0.011.701.71
204316.5515.07-1.48
----
-0.011.801.81
204416.5115.16-1.35
----
-0.011.891.90
204516.4815.17-1.31
----
-0.011.901.91
204616.4415.17-1.27
----
-0.011.901.91
204716.4115.17-1.25
----
-0.011.901.91
204816.3915.17-1.22
----
-0.011.901.91
204916.3715.17-1.20
----
-0.011.901.91
205016.3515.17-1.18
----
-0.021.901.91
205116.3415.17-1.18
----
-0.021.901.92
205216.3515.17-1.18
----
-0.021.901.92
205316.3515.17-1.18
----
-0.021.901.92
205416.3615.17-1.19
----
-0.021.901.92
205516.3915.18-1.21
----
-0.021.901.92
205616.4215.18-1.24
----
-0.021.901.92
205716.4515.18-1.27
----
-0.031.901.93
205816.5015.19-1.31
----
-0.031.901.93
205916.5515.19-1.35
----
-0.031.901.93
206016.6015.20-1.40
----
-0.031.901.93
206116.6515.20-1.44
----
-0.031.901.93
206216.7015.21-1.49
----
-0.031.901.94
206316.7515.21-1.54
----
-0.041.901.94
206416.8015.21-1.59
----
-0.041.901.94
206516.8615.22-1.64
----
-0.041.901.94
206616.9115.22-1.69
----
-0.041.901.94
206716.9715.23-1.74
----
-0.041.901.95
206817.0315.23-1.80
----
-0.051.901.95
206917.0915.24-1.85
----
-0.051.901.95
207017.1515.24-1.90
----
-0.051.901.95
207117.2015.25-1.95
----
-0.051.901.95
207217.2515.25-2.00
----
-0.051.901.96
207317.2915.25-2.04
----
-0.051.901.96
207417.3415.26-2.08
----
-0.061.911.96
207517.3715.26-2.11
----
-0.061.911.96
207617.4015.26-2.14
----
-0.061.911.96
207717.4215.27-2.15
----
-0.061.911.97
207817.4215.27-2.15
----
-0.061.911.97
207917.4215.27-2.15
----
-0.061.911.97
208017.4015.27-2.13
----
-0.061.911.97
208117.3815.27-2.11
----
-0.061.911.97
208217.3615.27-2.09
----
-0.061.911.97
208317.3415.27-2.07
----
-0.071.911.97
208417.3115.27-2.05
----
-0.071.911.98
208517.2915.26-2.02
----
-0.071.911.98
208617.2715.26-2.01
----
-0.071.911.98
208717.2615.26-2.00
----
-0.071.911.98
208817.2615.26-1.99
----
-0.071.911.98
208917.2715.26-2.00
----
-0.071.911.98
209017.2915.27-2.02
----
-0.071.911.98
209117.3215.27-2.05
----
-0.071.911.98
209217.3615.27-2.09
----
-0.071.911.98
209317.4015.28-2.13
----
-0.071.911.98
209417.4515.28-2.17
----
-0.071.921.99


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2019-2093 16.57% 15.25% -1.32%
2038
-0.03% 1.44% 1.47%

1 Under current law, the year of Trust Fund reserve depletion is 2035.
Based on Intermediate Assumptions of the 2019 Trustees Report.