Long Range Solvency Provisions

Description of Proposed Provision:
E3.9: Beginning in 2033, apply 2 percent payroll tax rate on earnings over the wage-indexed equivalent of $200,000 in 2017 (about $380,400 in 2033), with the threshold wage-indexed after 2033. 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	13.03	-2.25	149	0.00	0.00	0.00
2027	15.48	13.08	-2.39	131	0.00	0.00	0.00
2028	15.59	13.11	-2.48	113	0.00	0.00	0.00
2029	15.69	13.14	-2.55	95	0.00	0.00	0.00
2030	15.80	13.16	-2.64	78	0.00	0.00	0.00
2031	15.91	13.18	-2.73	60	0.00	0.00	0.00
2032	16.00	13.20	-2.80	43	0.00	0.00	0.00
2033	16.07	13.52	-2.55	26	0.00	0.28	0.28
2034	16.14	13.55	-2.59	10	-0.00	0.29	0.29
2035	16.23	13.56	-2.66	—	-0.00	0.29	0.29
2036	16.32	13.57	-2.75	—	-0.00	0.29	0.29
2037	16.41	13.58	-2.83	—	-0.00	0.29	0.29
2038	16.49	13.59	-2.89	—	-0.00	0.29	0.29
2039	16.55	13.60	-2.95	—	-0.00	0.29	0.29
2040	16.60	13.60	-3.00	—	-0.00	0.29	0.29
2041	16.64	13.61	-3.03	—	-0.00	0.29	0.29
2042	16.67	13.61	-3.06	—	-0.00	0.29	0.29
2043	16.70	13.62	-3.09	—	-0.00	0.29	0.29
2044	16.74	13.62	-3.12	—	-0.00	0.29	0.29
2045	16.77	13.62	-3.14	—	-0.01	0.29	0.29
2046	16.80	13.63	-3.17	—	-0.01	0.29	0.29
2047	16.83	13.63	-3.20	—	-0.01	0.29	0.30
2048	16.87	13.64	-3.23	—	-0.01	0.29	0.30
2049	16.92	13.64	-3.28	—	-0.01	0.29	0.30
2050	16.96	13.65	-3.32	—	-0.01	0.29	0.30
2051	17.01	13.65	-3.36	—	-0.01	0.29	0.30
2052	17.07	13.66	-3.42	—	-0.01	0.29	0.30
2053	17.14	13.66	-3.47	—	-0.01	0.29	0.30
2054	17.21	13.67	-3.54	—	-0.01	0.29	0.30
2055	17.29	13.67	-3.61	—	-0.01	0.29	0.30
2056	17.37	13.68	-3.69	—	-0.01	0.29	0.30
2057	17.46	13.69	-3.78	—	-0.01	0.29	0.30
2058	17.56	13.70	-3.86	—	-0.01	0.29	0.30
2059	17.65	13.70	-3.94	—	-0.01	0.29	0.30
2060	17.73	13.71	-4.02	—	-0.01	0.29	0.30
2061	17.81	13.72	-4.09	—	-0.01	0.29	0.30
2062	17.88	13.72	-4.16	—	-0.01	0.29	0.30
2063	17.95	13.73	-4.22	—	-0.01	0.29	0.30
2064	18.02	13.74	-4.28	—	-0.01	0.29	0.30
2065	18.09	13.74	-4.34	—	-0.01	0.29	0.30
2066	18.16	13.75	-4.41	—	-0.01	0.29	0.30
2067	18.22	13.75	-4.47	—	-0.01	0.29	0.30
2068	18.29	13.76	-4.54	—	-0.01	0.29	0.30
2069	18.37	13.77	-4.60	—	-0.01	0.29	0.30
2070	18.44	13.77	-4.67	—	-0.01	0.29	0.30
2071	18.52	13.78	-4.74	—	-0.01	0.29	0.30
2072	18.59	13.78	-4.80	—	-0.01	0.29	0.30
2073	18.66	13.79	-4.87	—	-0.01	0.29	0.30
2074	18.73	13.80	-4.93	—	-0.01	0.29	0.30
2075	18.79	13.80	-4.99	—	-0.01	0.29	0.30
2076	18.84	13.81	-5.03	—	-0.01	0.29	0.30
2077	18.88	13.81	-5.07	—	-0.01	0.29	0.30
2078	18.92	13.81	-5.10	—	-0.01	0.29	0.30
2079	18.93	13.81	-5.12	—	-0.01	0.29	0.30
2080	18.95	13.82	-5.13	—	-0.01	0.29	0.30
2081	18.95	13.82	-5.13	—	-0.01	0.29	0.30
2082	18.94	13.82	-5.12	—	-0.01	0.29	0.30
2083	18.92	13.82	-5.11	—	-0.01	0.29	0.30
2084	18.90	13.82	-5.08	—	-0.01	0.29	0.30
2085	18.86	13.82	-5.04	—	-0.01	0.29	0.30
2086	18.81	13.81	-5.00	—	-0.01	0.29	0.30
2087	18.76	13.81	-4.95	—	-0.01	0.29	0.30
2088	18.69	13.81	-4.89	—	-0.01	0.29	0.30
2089	18.63	13.80	-4.83	—	-0.01	0.29	0.30
2090	18.57	13.80	-4.77	—	-0.01	0.29	0.30
2091	18.51	13.79	-4.72	—	-0.01	0.29	0.30
2092	18.46	13.79	-4.67	—	-0.01	0.29	0.30
2093	18.41	13.79	-4.62	—	-0.01	0.29	0.30
2094	18.38	13.79	-4.59	—	-0.01	0.29	0.30
2095	18.35	13.78	-4.57	—	-0.01	0.29	0.30
2096	18.33	13.78	-4.55	—	-0.01	0.29	0.30
2097	18.32	13.78	-4.54	—	-0.01	0.29	0.30
2098	18.32	13.78	-4.54	—	-0.01	0.29	0.30
2099	18.33	13.78	-4.55	—	-0.01	0.29	0.30
2100	18.34	13.79	-4.56	—	-0.01	0.29	0.30

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	17.60%	14.04%	-3.57%	2034	-0.01%	0.25%	0.26%
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: E3.9: Beginning in 2033, apply 2 percent payroll tax rate on earnings over the wage-indexed equivalent of $200,000 in 2017 (about $380,400 in 2033), with the threshold wage-indexed after 2033. Do not provide benefit credit for additional earnings taxed.

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates

Description of Proposed Provision:
E3.9: Beginning in 2033, apply 2 percent payroll tax rate on earnings over the wage-indexed equivalent of $200,000 in 2017 (about $380,400 in 2033), with the threshold wage-indexed after 2033. Do not provide benefit credit for additional earnings taxed.