Description of Proposed Provision:
E3.1: Increase the taxable maximum such that 90 percent of earnings would be subject to the payroll tax (phased in 2020-2029). Provide benefit credit for earnings up to the revised 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
202013.9413.01-0.93
260
0.000.140.14
202114.0913.17-0.91
246
-0.000.280.28
202214.2313.32-0.91
232
-0.000.400.40
202314.4013.45-0.95
219
0.000.510.51
202414.5913.58-1.01
205
0.000.610.61
202514.7913.69-1.10
192
0.000.710.70
202614.9913.91-1.08
180
0.000.800.79
202715.2014.01-1.19
168
0.010.880.87
202815.4414.13-1.32
156
0.010.950.94
202915.6414.22-1.43
145
0.021.031.01
203015.8314.24-1.59
134
0.021.031.01
203115.9914.25-1.74
123
0.031.031.01
203216.1414.26-1.88
112
0.031.031.00
203316.2714.27-2.00
101
0.041.030.99
203416.3714.28-2.09
89
0.051.040.99
203516.4614.29-2.17
77
0.061.040.98
203616.5314.30-2.23
65
0.071.040.97
203716.5914.30-2.29
52
0.071.040.97
203816.6514.31-2.34
39
0.081.040.96
203916.7014.32-2.38
25
0.101.040.95
204016.7214.32-2.40
12
0.111.050.94
204116.7314.32-2.40
----
0.121.050.93
204216.7214.32-2.39
----
0.131.050.92
204316.6914.32-2.37
----
0.141.050.91
204416.6714.33-2.34
----
0.151.050.91
204516.6514.33-2.32
----
0.161.060.90
204616.6214.33-2.30
----
0.171.060.89
204716.6114.33-2.28
----
0.181.060.88
204816.6014.33-2.27
----
0.201.060.86
204916.5914.33-2.26
----
0.211.060.85
205016.5914.33-2.26
----
0.221.060.84
205116.6014.34-2.26
----
0.241.070.83
205216.6114.34-2.27
----
0.251.070.82
205316.6314.34-2.29
----
0.261.070.81
205416.6614.35-2.31
----
0.281.070.80
205516.7014.35-2.35
----
0.291.070.78
205616.7514.36-2.39
----
0.301.070.77
205716.8014.36-2.44
----
0.321.080.76
205816.8614.37-2.49
----
0.331.080.75
205916.9214.37-2.55
----
0.351.080.73
206016.9914.38-2.61
----
0.361.080.72
206117.0514.39-2.67
----
0.371.080.71
206217.1214.39-2.73
----
0.391.090.70
206317.1914.40-2.79
----
0.401.090.69
206417.2614.40-2.85
----
0.411.090.68
206517.3214.41-2.91
----
0.431.090.67
206617.3914.42-2.98
----
0.441.100.66
206717.4714.42-3.04
----
0.451.100.65
206817.5414.43-3.11
----
0.461.100.64
206917.6114.44-3.17
----
0.471.100.63
207017.6814.44-3.24
----
0.481.100.62
207117.7514.45-3.30
----
0.491.100.61
207217.8114.45-3.35
----
0.501.110.60
207317.8614.46-3.40
----
0.511.110.60
207417.9114.46-3.45
----
0.521.110.59
207517.9614.47-3.49
----
0.531.110.58
207617.9914.47-3.52
----
0.531.110.58
207718.0214.47-3.54
----
0.541.110.57
207818.0314.48-3.55
----
0.541.120.57
207918.0314.48-3.55
----
0.551.120.57
208018.0114.48-3.54
----
0.551.120.57
208118.0014.48-3.52
----
0.551.120.56
208217.9814.48-3.50
----
0.561.120.56
208317.9614.48-3.48
----
0.561.120.56
208417.9414.48-3.46
----
0.561.120.56
208517.9214.48-3.44
----
0.561.120.56
208617.9014.48-3.42
----
0.561.120.56
208717.8914.48-3.41
----
0.561.120.56
208817.8914.48-3.41
----
0.561.120.56
208917.9014.48-3.42
----
0.561.120.56
209017.9214.48-3.44
----
0.571.130.56
209117.9614.48-3.47
----
0.571.130.56
209218.0014.49-3.51
----
0.571.130.56
209318.0514.49-3.56
----
0.571.130.56
209418.1014.49-3.60
----
0.571.130.55


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 16.87% 14.81% -2.06%
2040
0.27% 1.00% 0.73%

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