Proposed Provision: Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2018, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2018, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2018 exclusion level until fully eliminated in 2028. Eliminate the excise tax on ESI premiums scheduled to begin in 2018.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2013330330
2014315315
2015301301
2016286286
2017271271
2018257257
2019244245
2020231233
2021218223
2022204212
2023189202
2024173191
2025158182
2026142173
2027125164
2028108156
202990147
203071137
203152127
203231116
203311104
2034-1192
2035-3280
2036-5568
2037-7855
2038-10142
2039-12429
2040-14816
2041-1723
2042-196-10
2043-220-23
2044-245-36
2045-269-49
2046-294-63
2047-319-76
2048-345-90
2049-371-104
2050-397-118
2051-423-132
2052-449-146
2053-476-161
2054-502-176
2055-530-191
2056-557-207
2057-585-223
2058-613-239
2059-642-256
2060-671-273
2061-701-291
2062-732-309
2063-763-328
2064-794-347
2065-826-366
2066-859-386
2067-892-407
2068-925-427
2069-959-448
2070-993-470
2071-1028-492
2072-1064-515
2073-1101-538
2074-1139-562
2075-1178-586
2076-1217-611
2077-1258-636
2078-1299-662
2079-1340-688
2080-1382-714
2081-1424-740
2082-1466-766
2083-1508-792
2084-1550-819
2085-1592-845
2086-1635-872
2087-1678-899
2088-1722-927
back