Long Range Solvency Provisions

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2027, 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	Trust fund ratio as of January 1	Cost rate	Income rate	Annual balance
2026	15.37	12.91	-2.45	151	0.00	0.00	0.00
2027	15.62	14.81	-0.81	131	0.00	1.96	1.96
2028	15.74	15.11	-0.63	123	0.04	2.10	2.06
2029	15.74	15.23	-0.51	117	-0.00	2.17	2.17
2030	15.73	15.32	-0.42	112	-0.00	2.24	2.25
2031	15.71	15.41	-0.31	108	-0.01	2.32	2.33
2032	15.71	15.50	-0.21	104	-0.01	2.40	2.41
2033	15.71	15.62	-0.09	102	-0.01	2.49	2.50
2034	15.72	15.65	-0.07	101	-0.02	2.51	2.53
2035	15.75	15.67	-0.08	101	-0.02	2.50	2.52
2036	15.83	15.68	-0.15	100	-0.02	2.50	2.53
2037	15.92	15.68	-0.24	99	-0.03	2.50	2.53
2038	16.01	15.69	-0.32	98	-0.04	2.50	2.54
2039	16.09	15.70	-0.39	96	-0.04	2.50	2.55
2040	16.16	15.70	-0.45	94	-0.05	2.50	2.55
2041	16.22	15.71	-0.51	91	-0.05	2.50	2.56
2042	16.28	15.71	-0.57	89	-0.06	2.51	2.56
2043	16.35	15.72	-0.63	86	-0.06	2.51	2.57
2044	16.43	15.72	-0.70	82	-0.07	2.51	2.57
2045	16.50	15.73	-0.77	78	-0.07	2.51	2.58
2046	16.56	15.73	-0.83	74	-0.07	2.51	2.58
2047	16.62	15.74	-0.89	70	-0.08	2.51	2.59
2048	16.69	15.74	-0.95	65	-0.08	2.51	2.59
2049	16.76	15.75	-1.01	60	-0.09	2.51	2.59
2050	16.84	15.75	-1.09	54	-0.09	2.51	2.60
2051	16.93	15.76	-1.17	48	-0.09	2.51	2.60
2052	17.03	15.77	-1.26	42	-0.09	2.51	2.60
2053	17.14	15.78	-1.36	35	-0.10	2.51	2.61
2054	17.25	15.78	-1.47	27	-0.10	2.51	2.61
2055	17.38	15.79	-1.59	19	-0.10	2.51	2.61
2056	17.51	15.80	-1.71	10	-0.10	2.51	2.61
2057	17.64	15.81	-1.83	1	-0.10	2.51	2.61
2058	17.77	15.82	-1.96	—	-0.10	2.51	2.62
2059	17.91	15.83	-2.08	—	-0.11	2.51	2.62
2060	18.04	15.84	-2.20	—	-0.11	2.51	2.62
2061	18.17	15.85	-2.32	—	-0.11	2.51	2.62
2062	18.29	15.85	-2.44	—	-0.11	2.51	2.62
2063	18.41	15.86	-2.55	—	-0.10	2.52	2.62
2064	18.53	15.87	-2.65	—	-0.10	2.52	2.62
2065	18.64	15.88	-2.76	—	-0.10	2.52	2.62
2066	18.76	15.89	-2.87	—	-0.10	2.52	2.62
2067	18.87	15.89	-2.98	—	-0.10	2.52	2.62
2068	18.99	15.90	-3.08	—	-0.10	2.52	2.62
2069	19.11	15.91	-3.20	—	-0.10	2.52	2.62
2070	19.23	15.92	-3.31	—	-0.10	2.52	2.62
2071	19.35	15.93	-3.42	—	-0.10	2.52	2.62
2072	19.47	15.93	-3.53	—	-0.09	2.52	2.62
2073	19.59	15.94	-3.64	—	-0.09	2.52	2.62
2074	19.70	15.95	-3.75	—	-0.09	2.52	2.61
2075	19.81	15.96	-3.85	—	-0.09	2.52	2.61
2076	19.91	15.97	-3.94	—	-0.09	2.52	2.61
2077	20.00	15.97	-4.02	—	-0.09	2.52	2.61
2078	20.08	15.98	-4.10	—	-0.09	2.52	2.61
2079	20.14	15.98	-4.16	—	-0.09	2.53	2.61
2080	20.20	15.99	-4.21	—	-0.09	2.53	2.61
2081	20.26	15.99	-4.26	—	-0.09	2.53	2.61
2082	20.30	16.00	-4.30	—	-0.08	2.53	2.61
2083	20.33	16.00	-4.33	—	-0.08	2.53	2.61
2084	20.36	16.00	-4.36	—	-0.08	2.53	2.61
2085	20.37	16.00	-4.37	—	-0.08	2.53	2.61
2086	20.37	16.00	-4.36	—	-0.08	2.53	2.61
2087	20.36	16.00	-4.35	—	-0.08	2.53	2.61
2088	20.33	16.00	-4.33	—	-0.08	2.53	2.61
2089	20.31	16.00	-4.30	—	-0.08	2.53	2.61
2090	20.27	16.00	-4.27	—	-0.08	2.53	2.61
2091	20.23	16.00	-4.23	—	-0.08	2.53	2.61
2092	20.19	16.00	-4.19	—	-0.08	2.53	2.61
2093	20.15	16.00	-4.15	—	-0.08	2.53	2.61
2094	20.11	15.99	-4.12	—	-0.08	2.53	2.61
2095	20.07	15.99	-4.08	—	-0.08	2.53	2.61
2096	20.04	15.99	-4.05	—	-0.08	2.53	2.61
2097	20.01	15.99	-4.02	—	-0.08	2.54	2.61
2098	19.98	15.99	-3.99	—	-0.07	2.54	2.61
2099	19.96	15.99	-3.97	—	-0.07	2.54	2.61
2100	19.95	15.99	-3.96	—	-0.07	2.54	2.61
2101	19.94	15.99	-3.95	—	-0.07	2.54	2.61

Summarized Estimates

	Proposal				Change from Current Law
Years	Cost rate	Income rate	Actuarial balance	Year of reserve depletion¹	Cost rate	Income rate	Actuarial balance
2026-2100	18.03%	16.12%	-1.91%	2057	-0.07%	2.45%	2.52%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2026 Trustees Report.

Detailed Single Year Tables

Description of Proposed Provision: E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2027, 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

Summarized Estimates

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2027, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.