Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2020, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.

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
202013.9414.220.28
260
0.001.351.35
202114.0814.360.27
254
-0.001.461.47
202214.2314.430.20
248
-0.001.511.51
202314.3914.490.10
242
-0.001.551.56
202414.5814.57-0.01
235
-0.001.601.60
202514.7814.63-0.15
228
-0.001.651.65
202614.9814.81-0.17
220
-0.001.701.71
202715.1914.89-0.30
213
-0.011.761.76
202815.4314.99-0.44
206
-0.011.821.82
202915.6215.07-0.55
199
-0.011.881.89
203015.8015.15-0.64
193
-0.011.951.96
203115.9615.23-0.72
188
-0.012.022.03
203216.1015.31-0.78
182
-0.012.092.10
203316.2215.40-0.82
178
-0.012.162.17
203416.3115.48-0.83
173
-0.012.242.25
203516.3815.56-0.82
169
-0.022.312.32
203616.4415.57-0.87
166
-0.022.312.33
203716.5015.58-0.92
162
-0.022.312.33
203816.5515.58-0.96
158
-0.022.312.33
203916.5815.59-1.00
153
-0.022.322.34
204016.5915.59-1.00
149
-0.022.322.34
204116.5915.59-1.00
144
-0.022.322.34
204216.5615.59-0.97
140
-0.032.322.34
204316.5315.59-0.94
136
-0.032.322.35
204416.4915.59-0.90
132
-0.032.322.35
204516.4615.59-0.87
128
-0.032.322.35
204616.4215.59-0.83
124
-0.032.322.35
204716.3915.59-0.80
120
-0.042.322.36
204816.3715.59-0.78
117
-0.042.322.36
204916.3415.59-0.75
113
-0.042.322.36
205016.3215.59-0.73
110
-0.042.322.36
205116.3215.59-0.72
106
-0.042.322.37
205216.3215.59-0.72
103
-0.052.322.37
205316.3215.60-0.73
100
-0.052.322.37
205416.3315.60-0.74
96
-0.052.322.37
205516.3615.60-0.75
92
-0.052.322.38
205616.3815.60-0.78
89
-0.062.322.38
205716.4215.61-0.81
85
-0.062.322.38
205816.4715.61-0.85
80
-0.062.322.39
205916.5115.62-0.89
76
-0.062.332.39
206016.5615.62-0.94
71
-0.072.332.39
206116.6115.63-0.98
66
-0.072.332.39
206216.6615.63-1.03
61
-0.072.332.40
206316.7115.64-1.08
55
-0.072.332.40
206416.7715.64-1.13
49
-0.082.332.40
206516.8215.65-1.17
43
-0.082.332.41
206616.8815.65-1.22
36
-0.082.332.41
206716.9315.66-1.28
30
-0.082.332.41
206816.9915.66-1.33
23
-0.082.332.41
206917.0515.67-1.38
15
-0.082.332.42
207017.1115.67-1.44
7
-0.092.332.42
207117.1615.68-1.49
----
-0.092.332.42
207217.2115.68-1.53
----
-0.092.332.42
207317.2615.68-1.57
----
-0.092.332.42
207417.3015.69-1.61
----
-0.092.342.43
207517.3415.69-1.65
----
-0.092.342.43
207617.3715.70-1.67
----
-0.092.342.43
207717.3815.70-1.68
----
-0.092.342.43
207817.3915.70-1.69
----
-0.092.342.43
207917.3815.70-1.68
----
-0.092.342.44
208017.3715.70-1.67
----
-0.102.342.44
208117.3515.70-1.65
----
-0.102.342.44
208217.3315.70-1.63
----
-0.102.342.44
208317.3115.70-1.60
----
-0.102.342.44
208417.2815.70-1.58
----
-0.102.352.44
208517.2615.70-1.56
----
-0.102.352.44
208617.2415.70-1.54
----
-0.102.352.44
208717.2315.70-1.53
----
-0.102.352.45
208817.2315.70-1.53
----
-0.102.352.45
208917.2415.70-1.54
----
-0.102.352.45
209017.2615.71-1.55
----
-0.102.352.45
209117.2915.71-1.58
----
-0.102.352.45
209217.3315.71-1.62
----
-0.102.362.45
209317.3815.72-1.66
----
-0.102.362.45
209417.4315.72-1.71
----
-0.092.362.45


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 16.55% 15.98% -0.57%
2070
-0.05% 2.17% 2.22%

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