Description of Proposed Provision:
F5: Tax Reform for Business: Establish a value added tax of 3.0 percent for 2019 and 6.5 percent for 2020 and later. Starting in 2019, reduce the corporate income tax rate from 35 to 27 percent.

Estimates based on the intermediate assumptions of the 2017 Trustees Report

Summary Measures
Current law
[percent of payroll]		   Change from current law
[percent of payroll]		   Shortfall eliminated
Long-range
actuarial
balance		 Annual
balance in
75th year		   Long-range
actuarial
balance		 Annual
balance in
75th year		   Long-range
actuarial
balance		 Annual
balance in
75th year
-2.83 -4.48   -0.02 0.17   -1% 4%

graph of OASDI cost rates and income rates by year, under current law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under current law and provision. click on graph to view underlying data.