Description of Proposed Provision:
E2.6: Apply a 3 percent payroll tax on earnings above the current-law taxable maximum starting in 2020. Do not provide benefit credit for earnings above the current-law taxable maximum.

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
202013.9413.45-0.49
260
0.000.580.58
202114.0913.50-0.58
249
-0.000.610.61
202214.2313.52-0.70
237
-0.000.600.61
202314.4013.54-0.86
225
-0.000.600.60
202414.5913.57-1.02
212
-0.000.600.60
202514.7813.58-1.20
199
-0.000.600.60
202614.9913.71-1.28
186
-0.000.600.60
202715.1913.73-1.46
172
-0.000.600.60
202815.4313.77-1.66
159
-0.000.600.60
202915.6213.79-1.84
146
-0.000.600.60
203015.8013.80-2.00
132
-0.000.600.60
203115.9613.81-2.15
119
-0.000.600.60
203216.1013.82-2.28
105
-0.000.600.60
203316.2313.83-2.39
91
-0.000.600.60
203416.3213.84-2.48
77
-0.000.600.60
203516.3913.85-2.54
63
-0.010.600.60
203616.4513.85-2.60
48
-0.010.600.60
203716.5113.86-2.65
33
-0.010.600.60
203816.5613.86-2.69
18
-0.010.600.60
203916.6013.87-2.73
2
-0.010.600.60
204016.6113.87-2.74
----
-0.010.600.61
204116.6013.87-2.73
----
-0.010.600.61
204216.5813.87-2.71
----
-0.010.600.61
204316.5513.87-2.68
----
-0.010.600.61
204416.5113.87-2.64
----
-0.010.600.61
204516.4813.87-2.61
----
-0.010.600.61
204616.4413.87-2.57
----
-0.010.600.61
204716.4113.87-2.55
----
-0.010.600.61
204816.3913.87-2.52
----
-0.010.600.61
204916.3713.87-2.50
----
-0.010.600.61
205016.3513.87-2.48
----
-0.010.600.61
205116.3513.87-2.48
----
-0.010.600.61
205216.3513.87-2.48
----
-0.020.600.61
205316.3613.87-2.48
----
-0.020.600.61
205416.3713.87-2.49
----
-0.020.600.62
205516.3913.88-2.52
----
-0.020.600.62
205616.4213.88-2.54
----
-0.020.600.62
205716.4613.88-2.58
----
-0.020.600.62
205816.5113.89-2.62
----
-0.020.600.62
205916.5613.89-2.66
----
-0.020.600.62
206016.6113.90-2.71
----
-0.020.600.62
206116.6613.90-2.76
----
-0.020.600.62
206216.7113.90-2.81
----
-0.020.600.62
206316.7713.91-2.86
----
-0.020.600.62
206416.8213.91-2.91
----
-0.020.600.62
206516.8713.92-2.96
----
-0.020.600.62
206616.9313.92-3.01
----
-0.020.600.62
206716.9913.93-3.06
----
-0.020.600.63
206817.0513.93-3.12
----
-0.020.600.63
206917.1113.93-3.17
----
-0.030.600.63
207017.1713.94-3.23
----
-0.030.600.63
207117.2313.94-3.28
----
-0.030.600.63
207217.2813.95-3.33
----
-0.030.600.63
207317.3213.95-3.37
----
-0.030.600.63
207417.3613.95-3.41
----
-0.030.600.63
207517.4013.96-3.45
----
-0.030.600.63
207617.4313.96-3.47
----
-0.030.600.63
207717.4513.96-3.49
----
-0.030.600.63
207817.4613.96-3.49
----
-0.030.600.63
207917.4513.96-3.49
----
-0.030.600.63
208017.4413.96-3.47
----
-0.030.600.63
208117.4213.96-3.45
----
-0.030.600.63
208217.4013.96-3.43
----
-0.030.600.63
208317.3713.96-3.41
----
-0.030.600.63
208417.3513.96-3.39
----
-0.030.600.63
208517.3313.96-3.37
----
-0.030.600.63
208617.3113.96-3.35
----
-0.030.600.63
208717.3013.96-3.34
----
-0.030.610.63
208817.3013.96-3.34
----
-0.030.610.63
208917.3113.96-3.35
----
-0.030.610.63
209017.3313.96-3.37
----
-0.030.610.63
209117.3613.96-3.40
----
-0.030.610.63
209217.4013.96-3.44
----
-0.030.610.63
209317.4513.97-3.48
----
-0.030.610.63
209417.5013.97-3.53
----
-0.030.610.63


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% 14.40% -2.18%
2039
-0.02% 0.59% 0.61%

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