Description of Proposed Provision:
E2.6: Apply a 3 percent payroll tax on earnings above the current-law taxable maximum starting in 2019. 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
201813.8112.64-1.17
288
0.000.000.00
201913.9513.44-0.52
272
0.000.570.57
202014.1213.50-0.62
260
-0.000.610.61
202114.2713.53-0.74
247
-0.000.610.61
202214.4413.55-0.88
234
-0.000.610.61
202314.6213.57-1.05
221
-0.000.610.61
202414.8013.60-1.20
207
-0.000.610.61
202514.9813.61-1.37
193
-0.000.600.60
202615.1613.73-1.42
179
-0.000.600.60
202715.3613.75-1.61
166
-0.000.600.60
202815.5813.77-1.81
152
-0.000.600.60
202915.7913.78-2.00
139
-0.000.600.60
203015.9813.80-2.18
125
-0.000.600.60
203116.1613.81-2.34
111
-0.000.600.60
203216.3113.82-2.49
96
-0.000.600.60
203316.4513.83-2.61
82
-0.000.600.60
203416.5613.84-2.72
67
-0.010.600.60
203516.6513.85-2.79
51
-0.010.600.60
203616.7213.86-2.86
35
-0.010.600.60
203716.7813.86-2.91
19
-0.010.600.60
203816.8113.87-2.95
2
-0.010.600.60
203916.8213.87-2.95
----
-0.010.600.61
204016.8213.87-2.95
----
-0.010.600.61
204116.8013.87-2.93
----
-0.010.600.61
204216.7713.87-2.90
----
-0.010.600.61
204316.7213.87-2.86
----
-0.010.600.61
204416.6813.87-2.82
----
-0.010.600.61
204516.6513.87-2.78
----
-0.010.600.61
204616.6213.87-2.75
----
-0.010.600.61
204716.5913.87-2.72
----
-0.010.600.61
204816.5613.87-2.70
----
-0.010.600.61
204916.5413.87-2.68
----
-0.010.600.61
205016.5313.87-2.66
----
-0.010.600.61
205116.5213.87-2.65
----
-0.020.600.61
205216.5213.87-2.65
----
-0.020.600.61
205316.5313.87-2.66
----
-0.020.600.62
205416.5413.87-2.67
----
-0.020.600.62
205516.5713.87-2.70
----
-0.020.600.62
205616.6113.88-2.73
----
-0.020.600.62
205716.6513.88-2.76
----
-0.020.600.62
205816.6913.89-2.81
----
-0.020.600.62
205916.7413.89-2.85
----
-0.020.600.62
206016.7913.89-2.89
----
-0.020.600.62
206116.8413.90-2.94
----
-0.020.600.62
206216.8913.90-2.98
----
-0.020.600.62
206316.9413.91-3.03
----
-0.020.600.62
206416.9913.91-3.08
----
-0.020.600.62
206517.0413.92-3.13
----
-0.020.600.62
206617.1013.92-3.18
----
-0.020.600.63
206717.1613.92-3.23
----
-0.030.600.63
206817.2213.93-3.29
----
-0.030.600.63
206917.2813.93-3.35
----
-0.030.600.63
207017.3413.94-3.40
----
-0.030.600.63
207117.3913.94-3.45
----
-0.030.600.63
207217.4413.95-3.50
----
-0.030.600.63
207317.4913.95-3.54
----
-0.030.600.63
207417.5313.95-3.57
----
-0.030.600.63
207517.5613.96-3.60
----
-0.030.600.63
207617.5813.96-3.63
----
-0.030.600.63
207717.6013.96-3.64
----
-0.030.600.63
207817.6013.96-3.64
----
-0.030.600.63
207917.5913.96-3.63
----
-0.030.600.63
208017.5813.96-3.62
----
-0.030.600.63
208117.5613.96-3.60
----
-0.030.600.63
208217.5413.96-3.59
----
-0.030.600.63
208317.5313.96-3.57
----
-0.030.610.63
208417.5113.96-3.56
----
-0.030.610.63
208517.5013.96-3.55
----
-0.030.610.63
208617.5013.96-3.54
----
-0.030.610.63
208717.5113.96-3.55
----
-0.030.610.63
208817.5213.96-3.56
----
-0.030.610.63
208917.5413.96-3.58
----
-0.030.610.63
209017.5713.96-3.61
----
-0.030.610.63
209117.6113.97-3.64
----
-0.030.610.63
209217.6513.97-3.68
----
-0.030.610.63
209317.7013.97-3.73
----
-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
2018-2092 16.67% 14.43% -2.24%
2038
-0.01% 0.59% 0.61%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.