Description of Proposed Provision:
E3.19: Increase the taxable maximum such that 90 percent of earnings would be subject to the payroll tax (phased in linearly from 2019-2024). Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from additional annual earnings taxed over the current-law taxable maximum; and (2) a formula factor of 2.5 percent on this newly computed "AIME+".
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 | 13.17 | -0.53 | 273 | 0.00 | 0.22 | 0.22 | ||
| 2020 | 13.85 | 13.39 | -0.46 | 260 | -0.00 | 0.43 | 0.43 | ||
| 2021 | 14.02 | 13.60 | -0.41 | 249 | -0.00 | 0.61 | 0.61 | ||
| 2022 | 14.25 | 13.78 | -0.47 | 239 | -0.00 | 0.76 | 0.76 | ||
| 2023 | 14.54 | 13.94 | -0.60 | 228 | -0.00 | 0.89 | 0.90 | ||
| 2024 | 14.82 | 14.10 | -0.72 | 218 | -0.00 | 1.02 | 1.02 | ||
| 2025 | 15.10 | 14.13 | -0.97 | 207 | -0.00 | 1.02 | 1.03 | ||
| 2026 | 15.37 | 14.16 | -1.21 | 196 | -0.00 | 1.02 | 1.02 | ||
| 2027 | 15.61 | 14.17 | -1.44 | 184 | -0.00 | 1.02 | 1.02 | ||
| 2028 | 15.85 | 14.19 | -1.66 | 172 | -0.00 | 1.02 | 1.02 | ||
| 2029 | 16.06 | 14.20 | -1.86 | 160 | -0.00 | 1.02 | 1.02 | ||
| 2030 | 16.26 | 14.22 | -2.04 | 148 | -0.00 | 1.02 | 1.03 | ||
| 2031 | 16.45 | 14.23 | -2.21 | 135 | -0.00 | 1.02 | 1.03 | ||
| 2032 | 16.60 | 14.24 | -2.36 | 123 | -0.00 | 1.02 | 1.03 | ||
| 2033 | 16.74 | 14.25 | -2.49 | 109 | -0.00 | 1.02 | 1.03 | ||
| 2034 | 16.85 | 14.26 | -2.59 | 95 | -0.00 | 1.02 | 1.03 | ||
| 2035 | 16.93 | 14.27 | -2.66 | 81 | -0.00 | 1.03 | 1.03 | ||
| 2036 | 16.99 | 14.27 | -2.71 | 66 | -0.00 | 1.03 | 1.03 | ||
| 2037 | 17.02 | 14.28 | -2.74 | 51 | -0.00 | 1.03 | 1.03 | ||
| 2038 | 17.02 | 14.28 | -2.74 | 36 | -0.00 | 1.03 | 1.03 | ||
| 2039 | 17.00 | 14.28 | -2.72 | 20 | -0.00 | 1.03 | 1.03 | ||
| 2040 | 16.96 | 14.28 | -2.68 | 5 | -0.00 | 1.03 | 1.03 | ||
| 2041 | 16.91 | 14.28 | -2.64 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2042 | 16.86 | 14.27 | -2.59 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2043 | 16.80 | 14.27 | -2.53 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2044 | 16.76 | 14.27 | -2.49 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2045 | 16.72 | 14.27 | -2.45 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2046 | 16.68 | 14.27 | -2.41 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2047 | 16.64 | 14.27 | -2.38 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2048 | 16.61 | 14.27 | -2.35 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2049 | 16.59 | 14.26 | -2.32 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2050 | 16.56 | 14.26 | -2.30 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2051 | 16.55 | 14.26 | -2.29 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2052 | 16.55 | 14.27 | -2.29 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2053 | 16.57 | 14.27 | -2.30 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2054 | 16.59 | 14.27 | -2.32 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2055 | 16.62 | 14.27 | -2.34 | ---- | -0.00 | 1.03 | 1.04 | ||
| 2056 | 16.65 | 14.28 | -2.38 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2057 | 16.69 | 14.28 | -2.41 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2058 | 16.74 | 14.28 | -2.45 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2059 | 16.78 | 14.29 | -2.49 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2060 | 16.82 | 14.29 | -2.53 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2061 | 16.87 | 14.29 | -2.58 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2062 | 16.92 | 14.30 | -2.62 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2063 | 16.97 | 14.30 | -2.66 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2064 | 17.01 | 14.31 | -2.71 | ---- | -0.00 | 1.04 | 1.05 | ||
| 2065 | 17.06 | 14.31 | -2.75 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2066 | 17.11 | 14.31 | -2.80 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2067 | 17.16 | 14.32 | -2.85 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2068 | 17.22 | 14.32 | -2.89 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2069 | 17.27 | 14.33 | -2.94 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2070 | 17.32 | 14.33 | -2.99 | ---- | -0.01 | 1.04 | 1.05 | ||
| 2071 | 17.37 | 14.33 | -3.03 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2072 | 17.41 | 14.34 | -3.07 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2073 | 17.44 | 14.34 | -3.10 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2074 | 17.47 | 14.34 | -3.13 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2075 | 17.50 | 14.35 | -3.15 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2076 | 17.51 | 14.35 | -3.17 | ---- | -0.01 | 1.05 | 1.05 | ||
| 2077 | 17.52 | 14.35 | -3.17 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2078 | 17.52 | 14.35 | -3.17 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2079 | 17.51 | 14.35 | -3.16 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2080 | 17.51 | 14.35 | -3.16 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2081 | 17.50 | 14.35 | -3.15 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2082 | 17.50 | 14.35 | -3.15 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2083 | 17.51 | 14.35 | -3.16 | ---- | -0.01 | 1.05 | 1.06 | ||
| 2084 | 17.52 | 14.35 | -3.17 | ---- | -0.01 | 1.06 | 1.06 | ||
| 2085 | 17.55 | 14.36 | -3.19 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2086 | 17.58 | 14.36 | -3.22 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2087 | 17.61 | 14.36 | -3.25 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2088 | 17.65 | 14.36 | -3.29 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2089 | 17.70 | 14.37 | -3.33 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2090 | 17.74 | 14.37 | -3.37 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2091 | 17.79 | 14.37 | -3.42 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2092 | 17.84 | 14.38 | -3.46 | ---- | -0.00 | 1.06 | 1.06 | ||
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 | 16.66% | 14.81% | -1.85% | 2040 | -0.00% | 0.97% | 0.97% | ||
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.