Description of Proposed Provision:
E1.2: Increase the payroll tax rate (currently 12.4 percent) to 15.4 percent in 2032-2061, and to 18.4 percent in years 2062 and later.

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
202013.9412.87-1.07
260
0.000.000.00
202114.0912.90-1.19
245
0.000.000.00
202214.2312.92-1.31
229
0.000.000.00
202314.4012.94-1.46
213
0.000.000.00
202414.5912.97-1.62
197
0.000.000.00
202514.7912.99-1.80
180
0.000.000.00
202614.9913.11-1.88
163
0.000.000.00
202715.1913.13-2.06
147
0.000.000.00
202815.4313.17-2.26
130
0.000.000.00
202915.6313.19-2.44
114
0.000.000.00
203015.8113.20-2.60
97
0.000.000.00
203115.9713.22-2.75
80
0.000.000.00
203216.1115.93-0.17
63
0.002.712.71
203316.2316.06-0.16
62
-0.002.832.83
203416.3216.07-0.25
62
-0.012.832.83
203516.3916.08-0.31
61
-0.012.832.83
203616.4516.08-0.37
59
-0.012.832.83
203716.5116.09-0.42
57
-0.012.832.83
203816.5616.09-0.46
55
-0.012.832.84
203916.5916.10-0.50
53
-0.012.832.84
204016.6116.10-0.50
51
-0.012.832.84
204116.6016.10-0.50
49
-0.012.832.84
204216.5816.10-0.48
46
-0.012.832.84
204316.5416.10-0.44
44
-0.012.832.84
204416.5116.10-0.41
42
-0.012.832.84
204516.4716.10-0.37
40
-0.022.832.85
204616.4316.10-0.33
38
-0.022.832.85
204716.4116.10-0.31
37
-0.022.832.85
204816.3816.10-0.28
35
-0.022.832.85
204916.3616.10-0.26
34
-0.022.832.86
205016.3416.10-0.24
33
-0.032.832.86
205116.3316.10-0.23
32
-0.032.832.86
205216.3316.10-0.23
31
-0.032.832.86
205316.3416.11-0.23
30
-0.032.832.87
205416.3516.11-0.24
29
-0.042.832.87
205516.3716.11-0.26
28
-0.042.832.87
205616.4016.12-0.29
27
-0.042.832.87
205716.4416.12-0.32
25
-0.042.832.88
205816.4816.12-0.36
23
-0.052.842.88
205916.5316.13-0.40
22
-0.052.842.88
206016.5816.13-0.44
19
-0.052.842.89
206116.6316.14-0.49
17
-0.052.842.89
206216.6818.782.11
14
-0.065.485.54
206316.7318.902.18
27
-0.065.605.66
206416.7818.912.13
40
-0.075.605.66
206516.8318.922.09
53
-0.075.605.67
206616.8818.922.04
66
-0.075.605.67
206716.9418.931.99
78
-0.085.605.68
206816.9918.931.94
90
-0.085.605.68
206917.0518.941.89
102
-0.085.605.69
207017.1118.941.83
114
-0.095.615.69
207117.1618.951.79
125
-0.095.615.70
207217.2118.951.75
136
-0.095.615.70
207317.2518.961.71
147
-0.105.615.71
207417.2918.961.67
158
-0.105.615.71
207517.3218.971.64
168
-0.115.615.72
207617.3518.971.62
179
-0.115.615.72
207717.3618.981.61
190
-0.115.625.73
207817.3718.981.61
201
-0.125.625.73
207917.3618.981.62
212
-0.125.625.74
208017.3418.981.64
223
-0.125.625.74
208117.3218.981.66
235
-0.125.625.75
208217.3018.981.69
247
-0.135.635.75
208317.2718.981.71
259
-0.135.635.76
208417.2418.981.74
271
-0.135.635.76
208517.2218.991.77
284
-0.145.635.77
208617.2018.991.79
297
-0.145.635.77
208717.1918.991.80
310
-0.145.635.78
208817.1818.991.81
323
-0.145.645.78
208917.1918.991.80
337
-0.155.645.78
209017.2118.991.79
350
-0.155.645.79
209117.2419.001.76
362
-0.155.645.79
209217.2719.001.73
375
-0.155.645.80
209317.3219.011.69
387
-0.165.655.80
209417.3619.011.65
400
-0.165.655.81


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 16.55% 17.06% 0.52%
N/A
-0.05% 3.25% 3.30%

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