Description of Proposed Provision:
E3.6: Increase the taxable maximum each year by an additional 2 percent beginning in 2020 until taxable earnings equal 90 percent of covered earnings. 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 |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.85 | 13.00 | -0.85 | 259 | 0.00 | 0.04 | 0.04 | ||
| 2021 | 14.02 | 13.07 | -0.94 | 245 | -0.00 | 0.08 | 0.08 | ||
| 2022 | 14.26 | 13.14 | -1.11 | 231 | -0.00 | 0.12 | 0.12 | ||
| 2023 | 14.54 | 13.21 | -1.34 | 216 | -0.00 | 0.16 | 0.16 | ||
| 2024 | 14.83 | 13.28 | -1.55 | 201 | -0.00 | 0.20 | 0.20 | ||
| 2025 | 15.10 | 13.34 | -1.76 | 186 | -0.00 | 0.23 | 0.23 | ||
| 2026 | 15.37 | 13.41 | -1.97 | 170 | -0.00 | 0.27 | 0.27 | ||
| 2027 | 15.62 | 13.45 | -2.16 | 155 | -0.00 | 0.30 | 0.30 | ||
| 2028 | 15.85 | 13.51 | -2.35 | 139 | -0.00 | 0.34 | 0.34 | ||
| 2029 | 16.06 | 13.55 | -2.51 | 123 | -0.00 | 0.37 | 0.37 | ||
| 2030 | 16.26 | 13.60 | -2.66 | 107 | -0.00 | 0.41 | 0.41 | ||
| 2031 | 16.45 | 13.65 | -2.80 | 91 | -0.00 | 0.44 | 0.44 | ||
| 2032 | 16.60 | 13.69 | -2.92 | 74 | -0.00 | 0.47 | 0.47 | ||
| 2033 | 16.74 | 13.73 | -3.01 | 57 | -0.00 | 0.50 | 0.50 | ||
| 2034 | 16.85 | 13.76 | -3.08 | 40 | -0.00 | 0.53 | 0.53 | ||
| 2035 | 16.92 | 13.80 | -3.13 | 22 | -0.00 | 0.56 | 0.56 | ||
| 2036 | 16.99 | 13.83 | -3.15 | 5 | -0.00 | 0.59 | 0.59 | ||
| 2037 | 17.02 | 13.86 | -3.15 | ---- | -0.00 | 0.61 | 0.62 | ||
| 2038 | 17.02 | 13.89 | -3.13 | ---- | -0.00 | 0.64 | 0.65 | ||
| 2039 | 16.99 | 13.92 | -3.08 | ---- | -0.00 | 0.67 | 0.67 | ||
| 2040 | 16.96 | 13.94 | -3.01 | ---- | -0.00 | 0.70 | 0.70 | ||
| 2041 | 16.91 | 13.97 | -2.94 | ---- | -0.00 | 0.72 | 0.73 | ||
| 2042 | 16.86 | 13.99 | -2.87 | ---- | -0.01 | 0.75 | 0.75 | ||
| 2043 | 16.80 | 14.01 | -2.79 | ---- | -0.01 | 0.77 | 0.78 | ||
| 2044 | 16.75 | 14.03 | -2.72 | ---- | -0.01 | 0.79 | 0.80 | ||
| 2045 | 16.71 | 14.06 | -2.66 | ---- | -0.01 | 0.82 | 0.82 | ||
| 2046 | 16.67 | 14.08 | -2.60 | ---- | -0.01 | 0.84 | 0.85 | ||
| 2047 | 16.64 | 14.10 | -2.54 | ---- | -0.01 | 0.86 | 0.87 | ||
| 2048 | 16.61 | 14.12 | -2.49 | ---- | -0.01 | 0.89 | 0.90 | ||
| 2049 | 16.58 | 14.14 | -2.44 | ---- | -0.01 | 0.91 | 0.92 | ||
| 2050 | 16.56 | 14.16 | -2.40 | ---- | -0.01 | 0.93 | 0.94 | ||
| 2051 | 16.54 | 14.18 | -2.36 | ---- | -0.01 | 0.95 | 0.96 | ||
| 2052 | 16.54 | 14.21 | -2.34 | ---- | -0.01 | 0.97 | 0.98 | ||
| 2053 | 16.56 | 14.23 | -2.33 | ---- | -0.01 | 0.99 | 1.01 | ||
| 2054 | 16.58 | 14.25 | -2.33 | ---- | -0.01 | 1.01 | 1.03 | ||
| 2055 | 16.60 | 14.27 | -2.34 | ---- | -0.01 | 1.03 | 1.05 | ||
| 2056 | 16.64 | 14.27 | -2.37 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2057 | 16.68 | 14.28 | -2.40 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2058 | 16.72 | 14.28 | -2.44 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2059 | 16.77 | 14.28 | -2.48 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2060 | 16.81 | 14.29 | -2.52 | ---- | -0.02 | 1.03 | 1.05 | ||
| 2061 | 16.85 | 14.29 | -2.56 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2062 | 16.90 | 14.30 | -2.61 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2063 | 16.95 | 14.30 | -2.65 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2064 | 16.99 | 14.30 | -2.69 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2065 | 17.04 | 14.31 | -2.74 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2066 | 17.09 | 14.31 | -2.78 | ---- | -0.03 | 1.04 | 1.06 | ||
| 2067 | 17.14 | 14.31 | -2.83 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2068 | 17.19 | 14.32 | -2.88 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2069 | 17.25 | 14.32 | -2.92 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2070 | 17.30 | 14.33 | -2.97 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2071 | 17.34 | 14.33 | -3.01 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2072 | 17.38 | 14.33 | -3.05 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2073 | 17.42 | 14.34 | -3.08 | ---- | -0.03 | 1.04 | 1.08 | ||
| 2074 | 17.45 | 14.34 | -3.11 | ---- | -0.03 | 1.04 | 1.08 | ||
| 2075 | 17.47 | 14.34 | -3.13 | ---- | -0.03 | 1.04 | 1.08 | ||
| 2076 | 17.48 | 14.34 | -3.14 | ---- | -0.04 | 1.05 | 1.08 | ||
| 2077 | 17.49 | 14.34 | -3.14 | ---- | -0.04 | 1.05 | 1.08 | ||
| 2078 | 17.49 | 14.35 | -3.14 | ---- | -0.04 | 1.05 | 1.08 | ||
| 2079 | 17.48 | 14.35 | -3.13 | ---- | -0.04 | 1.05 | 1.08 | ||
| 2080 | 17.47 | 14.35 | -3.13 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2081 | 17.47 | 14.35 | -3.12 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2082 | 17.47 | 14.35 | -3.12 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2083 | 17.47 | 14.35 | -3.13 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2084 | 17.49 | 14.35 | -3.14 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2085 | 17.51 | 14.35 | -3.16 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2086 | 17.54 | 14.35 | -3.19 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2087 | 17.57 | 14.36 | -3.22 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2088 | 17.61 | 14.36 | -3.26 | ---- | -0.04 | 1.05 | 1.10 | ||
| 2089 | 17.66 | 14.36 | -3.30 | ---- | -0.04 | 1.05 | 1.10 | ||
| 2090 | 17.70 | 14.37 | -3.34 | ---- | -0.04 | 1.05 | 1.10 | ||
| 2091 | 17.75 | 14.37 | -3.38 | ---- | -0.04 | 1.05 | 1.10 | ||
| 2092 | 17.80 | 14.37 | -3.43 | ---- | -0.04 | 1.06 | 1.10 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 16.65% | 14.57% | -2.08% | 2036 | -0.01% | 0.73% | 0.75% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.