Long Range Solvency Provisions

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2026, 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
2025	15.15	12.80	-2.35	169	0.00	0.00	0.00
2026	15.29	14.89	-0.40	149	0.00	1.85	1.85
2027	15.48	15.08	-0.40	143	-0.00	2.00	2.00
2028	15.58	15.17	-0.41	137	-0.00	2.06	2.06
2029	15.69	15.27	-0.42	131	-0.00	2.13	2.13
2030	15.79	15.35	-0.44	126	-0.00	2.20	2.20
2031	15.91	15.45	-0.46	122	-0.00	2.27	2.27
2032	16.01	15.55	-0.46	117	0.00	2.34	2.34
2033	15.87	15.67	-0.20	114	-0.20	2.43	2.63
2034	16.11	15.76	-0.35	112	-0.03	2.50	2.53
2035	16.20	15.78	-0.42	109	-0.03	2.50	2.53
2036	16.29	15.79	-0.50	107	-0.03	2.50	2.54
2037	16.38	15.80	-0.58	104	-0.04	2.50	2.54
2038	16.45	15.81	-0.64	100	-0.04	2.50	2.54
2039	16.51	15.81	-0.69	97	-0.05	2.50	2.55
2040	16.55	15.82	-0.73	93	-0.05	2.50	2.55
2041	16.59	15.82	-0.77	89	-0.06	2.50	2.56
2042	16.62	15.83	-0.79	86	-0.06	2.50	2.56
2043	16.64	15.83	-0.81	81	-0.06	2.50	2.57
2044	16.67	15.84	-0.84	77	-0.07	2.50	2.57
2045	16.70	15.84	-0.86	73	-0.07	2.50	2.58
2046	16.73	15.84	-0.88	68	-0.08	2.50	2.58
2047	16.76	15.85	-0.91	64	-0.08	2.50	2.59
2048	16.79	15.85	-0.94	59	-0.08	2.51	2.59
2049	16.84	15.86	-0.98	54	-0.09	2.51	2.59
2050	16.88	15.86	-1.02	48	-0.09	2.51	2.60
2051	16.93	15.87	-1.06	43	-0.09	2.51	2.60
2052	16.99	15.87	-1.11	37	-0.09	2.51	2.60
2053	17.05	15.88	-1.17	31	-0.10	2.51	2.60
2054	17.12	15.89	-1.23	24	-0.10	2.51	2.61
2055	17.20	15.89	-1.31	18	-0.10	2.51	2.61
2056	17.28	15.90	-1.38	10	-0.10	2.51	2.61
2057	17.38	15.91	-1.46	3	-0.10	2.51	2.61
2058	17.47	15.92	-1.55	—	-0.10	2.51	2.61
2059	17.56	15.93	-1.63	—	-0.10	2.51	2.61
2060	17.64	15.93	-1.71	—	-0.10	2.51	2.61
2061	17.72	15.94	-1.78	—	-0.10	2.51	2.61
2062	17.79	15.95	-1.84	—	-0.10	2.51	2.61
2063	17.86	15.96	-1.91	—	-0.10	2.51	2.61
2064	17.93	15.96	-1.97	—	-0.10	2.51	2.61
2065	18.00	15.97	-2.03	—	-0.10	2.51	2.61
2066	18.07	15.98	-2.10	—	-0.10	2.52	2.61
2067	18.14	15.98	-2.16	—	-0.10	2.52	2.61
2068	18.21	15.99	-2.23	—	-0.09	2.52	2.61
2069	18.29	15.99	-2.29	—	-0.09	2.52	2.61
2070	18.36	16.00	-2.36	—	-0.09	2.52	2.61
2071	18.44	16.01	-2.43	—	-0.09	2.52	2.61
2072	18.51	16.01	-2.50	—	-0.09	2.52	2.61
2073	18.58	16.02	-2.56	—	-0.09	2.52	2.61
2074	18.65	16.03	-2.63	—	-0.09	2.52	2.61
2075	18.72	16.03	-2.68	—	-0.09	2.52	2.61
2076	18.77	16.04	-2.73	—	-0.08	2.52	2.61
2077	18.81	16.04	-2.77	—	-0.08	2.52	2.61
2078	18.84	16.05	-2.80	—	-0.08	2.52	2.60
2079	18.86	16.05	-2.82	—	-0.08	2.52	2.60
2080	18.88	16.05	-2.82	—	-0.08	2.52	2.60
2081	18.88	16.05	-2.83	—	-0.08	2.52	2.60
2082	18.87	16.05	-2.82	—	-0.08	2.52	2.60
2083	18.86	16.05	-2.80	—	-0.08	2.53	2.60
2084	18.83	16.05	-2.78	—	-0.08	2.53	2.60
2085	18.79	16.05	-2.74	—	-0.08	2.53	2.60
2086	18.75	16.05	-2.70	—	-0.07	2.53	2.60
2087	18.69	16.05	-2.64	—	-0.07	2.53	2.60
2088	18.63	16.04	-2.59	—	-0.07	2.53	2.60
2089	18.57	16.04	-2.53	—	-0.07	2.53	2.60
2090	18.51	16.04	-2.47	—	-0.07	2.53	2.60
2091	18.45	16.03	-2.41	—	-0.07	2.53	2.60
2092	18.39	16.03	-2.36	—	-0.07	2.53	2.60
2093	18.35	16.03	-2.32	—	-0.07	2.53	2.60
2094	18.32	16.03	-2.29	—	-0.07	2.53	2.60
2095	18.29	16.03	-2.26	—	-0.07	2.53	2.60
2096	18.27	16.03	-2.25	—	-0.07	2.53	2.60
2097	18.26	16.03	-2.24	—	-0.07	2.53	2.60
2098	18.26	16.03	-2.23	—	-0.07	2.53	2.60
2099	18.27	16.03	-2.24	—	-0.07	2.53	2.60
2100	18.28	16.03	-2.25	—	-0.07	2.53	2.60

Summarized Estimates

	Proposal				Change from Current Law
Years	Cost rate	Income rate	Actuarial balance	Year of reserve depletion¹	Cost rate	Income rate	Actuarial balance
2025-2099	17.54%	16.22%	-1.32%	2057	-0.07%	2.43%	2.50%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2025 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 2026, 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 2026, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.