Description of Proposed Provision:
E1.8: Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point each year from 2022-2027, until the rate reaches 13.0 percent for 2027 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
202214.2313.01-1.22
229
0.000.090.09
202314.4013.13-1.27
214
-0.000.190.19
202414.5913.25-1.33
199
-0.000.280.28
202514.7813.36-1.42
184
-0.000.380.38
202614.9913.58-1.40
169
-0.000.470.47
202715.1913.70-1.49
156
-0.000.570.57
202815.4313.75-1.68
143
-0.000.570.57
202915.6213.76-1.86
129
-0.000.570.57
203015.8013.78-2.03
116
-0.000.570.57
203115.9613.79-2.18
103
-0.000.570.57
203216.1113.80-2.31
89
-0.000.570.57
203316.2313.81-2.42
75
-0.000.570.57
203416.3213.82-2.51
61
-0.000.570.58
203516.4013.82-2.57
46
-0.000.570.58
203616.4613.83-2.63
31
-0.000.570.58
203716.5113.84-2.68
16
-0.000.570.58
203816.5613.84-2.72
0
-0.000.570.58
203916.6013.84-2.75
----
-0.000.570.58
204016.6113.85-2.76
----
-0.010.570.58
204116.6113.85-2.76
----
-0.010.570.58
204216.5813.85-2.74
----
-0.010.570.58
204316.5513.85-2.71
----
-0.010.570.58
204416.5113.84-2.67
----
-0.010.570.58
204516.4813.84-2.64
----
-0.010.570.58
204616.4413.84-2.60
----
-0.010.570.58
204716.4213.84-2.57
----
-0.010.570.58
204816.4013.84-2.55
----
-0.010.570.58
204916.3713.84-2.53
----
-0.010.570.58
205016.3613.84-2.51
----
-0.010.570.58
205116.3513.84-2.51
----
-0.010.570.58
205216.3513.85-2.51
----
-0.010.570.58
205316.3613.85-2.51
----
-0.010.570.59
205416.3713.85-2.52
----
-0.010.570.59
205516.4013.85-2.55
----
-0.010.570.59
205616.4313.85-2.57
----
-0.010.570.59
205716.4713.86-2.61
----
-0.010.570.59
205816.5113.86-2.65
----
-0.020.570.59
205916.5613.87-2.69
----
-0.020.570.59
206016.6113.87-2.74
----
-0.020.570.59
206116.6613.87-2.79
----
-0.020.570.59
206216.7213.88-2.84
----
-0.020.570.59
206316.7713.88-2.89
----
-0.020.570.59
206416.8213.89-2.94
----
-0.020.570.59
206516.8813.89-2.99
----
-0.020.570.59
206616.9313.90-3.04
----
-0.020.570.59
206716.9913.90-3.09
----
-0.020.570.60
206817.0513.90-3.15
----
-0.020.570.60
206917.1113.91-3.20
----
-0.020.570.60
207017.1713.91-3.26
----
-0.020.570.60
207117.2313.92-3.31
----
-0.020.570.60
207217.2813.92-3.36
----
-0.020.570.60
207317.3213.92-3.40
----
-0.020.570.60
207417.3713.93-3.44
----
-0.020.570.60
207517.4113.93-3.48
----
-0.020.580.60
207617.4313.93-3.50
----
-0.020.580.60
207717.4513.94-3.52
----
-0.020.580.60
207817.4613.94-3.52
----
-0.020.580.60
207917.4513.94-3.52
----
-0.020.580.60
208017.4413.94-3.50
----
-0.020.580.60
208117.4213.94-3.48
----
-0.020.580.60
208217.4013.93-3.46
----
-0.030.580.60
208317.3813.93-3.44
----
-0.030.580.60
208417.3513.93-3.42
----
-0.030.580.60
208517.3313.93-3.40
----
-0.030.580.60
208617.3113.93-3.38
----
-0.020.580.60
208717.3013.93-3.37
----
-0.020.580.60
208817.3013.93-3.37
----
-0.020.580.60
208917.3113.93-3.38
----
-0.020.580.60
209017.3313.93-3.40
----
-0.020.580.60
209117.3613.93-3.43
----
-0.020.580.60
209217.4013.94-3.47
----
-0.020.580.60
209317.4513.94-3.51
----
-0.020.580.60
209417.5013.94-3.56
----
-0.020.580.60


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 16.58% 14.34% -2.25%
2038
-0.01% 0.53% 0.54%

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