Description of Proposed Provision:
E3.14: Eliminate the taxable maximum for the employer payroll tax (6.2 percent) beginning in 2020. For the employee payroll tax (6.2 percent) and for benefit credit purposes, beginning in 2020, increase the taxable maximum by an additional 2 percent per year until taxable earnings equal 90 percent of covered earnings.

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
202013.9414.020.07
260
0.001.151.15
202114.0814.120.03
253
-0.001.221.23
202214.2314.15-0.07
245
-0.001.231.24
202314.3914.19-0.21
237
-0.001.251.25
202414.5814.23-0.35
228
-0.001.261.27
202514.7814.27-0.51
219
-0.001.281.28
202614.9914.41-0.58
209
-0.001.301.30
202715.1914.45-0.74
200
-0.001.311.32
202815.4314.50-0.93
190
-0.001.331.33
202915.6214.53-1.09
181
-0.001.341.35
203015.8014.56-1.24
172
-0.001.361.36
203115.9714.59-1.37
163
-0.001.381.38
203216.1114.62-1.49
153
0.001.391.39
203316.2314.65-1.59
144
0.001.411.41
203416.3314.67-1.66
135
0.001.421.42
203516.4014.69-1.71
126
0.001.441.44
203616.4714.71-1.75
117
0.011.461.45
203716.5314.73-1.79
107
0.011.471.46
203816.5814.75-1.83
98
0.011.481.47
203916.6214.77-1.85
88
0.021.501.48
204016.6314.79-1.85
78
0.021.511.49
204116.6314.80-1.83
67
0.021.531.50
204216.6214.81-1.80
57
0.031.541.51
204316.5914.83-1.76
47
0.031.551.52
204416.5614.84-1.72
37
0.041.571.53
204516.5314.85-1.68
28
0.041.581.54
204616.5014.86-1.64
18
0.051.591.55
204716.4814.87-1.60
9
0.051.601.55
204816.4614.89-1.58
----
0.061.621.56
204916.4514.90-1.55
----
0.071.631.56
205016.4414.91-1.53
----
0.071.641.57
205116.4414.92-1.52
----
0.081.651.57
205216.4514.94-1.52
----
0.091.671.58
205316.4714.95-1.52
----
0.101.681.58
205416.4914.96-1.53
----
0.111.691.58
205516.5214.98-1.55
----
0.111.701.59
205616.5714.98-1.58
----
0.121.701.58
205716.6214.99-1.63
----
0.131.701.57
205816.6714.99-1.68
----
0.151.711.56
205916.7315.00-1.73
----
0.161.711.55
206016.8015.01-1.79
----
0.171.711.54
206116.8615.01-1.85
----
0.181.711.53
206216.9215.02-1.90
----
0.191.711.52
206316.9915.03-1.96
----
0.201.721.51
206417.0615.03-2.02
----
0.211.721.51
206517.1215.04-2.08
----
0.231.721.50
206617.1915.05-2.15
----
0.241.721.49
206717.2615.05-2.21
----
0.251.731.48
206817.3415.06-2.28
----
0.261.731.47
206917.4115.06-2.34
----
0.281.731.46
207017.4815.07-2.41
----
0.291.731.45
207117.5515.08-2.47
----
0.301.741.44
207217.6115.08-2.53
----
0.311.741.43
207317.6715.09-2.58
----
0.321.741.42
207417.7315.10-2.63
----
0.341.741.41
207517.7815.10-2.68
----
0.351.751.40
207617.8215.11-2.71
----
0.361.751.39
207717.8515.11-2.74
----
0.371.751.38
207817.8615.11-2.75
----
0.381.751.37
207917.8615.11-2.75
----
0.391.751.37
208017.8615.12-2.74
----
0.401.761.36
208117.8515.12-2.73
----
0.401.761.35
208217.8415.12-2.72
----
0.411.761.35
208317.8215.12-2.70
----
0.421.761.34
208417.8015.12-2.68
----
0.431.761.34
208517.7915.12-2.67
----
0.431.771.33
208617.7815.12-2.66
----
0.441.771.33
208717.7715.12-2.65
----
0.451.771.32
208817.7815.12-2.66
----
0.451.771.32
208917.7915.13-2.67
----
0.461.771.31
209017.8215.13-2.69
----
0.461.771.31
209117.8615.13-2.73
----
0.471.781.31
209217.9015.14-2.77
----
0.481.781.30
209317.9615.14-2.82
----
0.481.781.30
209418.0115.15-2.87
----
0.491.781.29


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 16.75% 15.37% -1.38%
2047
0.16% 1.56% 1.41%

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