Description of Proposed Provision:
E1.2: Increase the payroll tax rate (currently 12.4 percent) to 15.5 percent in 2030-2059, and to 18.6 percent in years 2060 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 |
|||
| 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 | 12.96 | -0.89 | 259 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.02 | 12.99 | -1.03 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.26 | 13.02 | -1.23 | 230 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.54 | 13.05 | -1.50 | 215 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.83 | 13.08 | -1.74 | 199 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 15.10 | 13.10 | -2.00 | 182 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.37 | 13.14 | -2.24 | 165 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.62 | 13.15 | -2.47 | 148 | 0.00 | 0.00 | 0.00 | ||
| 2028 | 15.85 | 13.17 | -2.69 | 130 | 0.00 | 0.00 | 0.00 | ||
| 2029 | 16.07 | 13.18 | -2.88 | 112 | 0.00 | 0.00 | 0.00 | ||
| 2030 | 16.27 | 15.97 | -0.29 | 94 | 0.00 | 2.78 | 2.78 | ||
| 2031 | 16.44 | 16.12 | -0.32 | 92 | -0.00 | 2.92 | 2.92 | ||
| 2032 | 16.60 | 16.14 | -0.46 | 90 | -0.01 | 2.92 | 2.92 | ||
| 2033 | 16.73 | 16.14 | -0.59 | 88 | -0.01 | 2.92 | 2.92 | ||
| 2034 | 16.84 | 16.15 | -0.69 | 85 | -0.01 | 2.92 | 2.93 | ||
| 2035 | 16.92 | 16.16 | -0.76 | 82 | -0.01 | 2.92 | 2.93 | ||
| 2036 | 16.98 | 16.16 | -0.82 | 78 | -0.01 | 2.92 | 2.93 | ||
| 2037 | 17.01 | 16.17 | -0.84 | 74 | -0.01 | 2.92 | 2.93 | ||
| 2038 | 17.01 | 16.17 | -0.84 | 70 | -0.01 | 2.92 | 2.93 | ||
| 2039 | 16.99 | 16.17 | -0.82 | 66 | -0.01 | 2.92 | 2.93 | ||
| 2040 | 16.95 | 16.17 | -0.78 | 62 | -0.01 | 2.92 | 2.93 | ||
| 2041 | 16.90 | 16.17 | -0.73 | 59 | -0.01 | 2.92 | 2.94 | ||
| 2042 | 16.84 | 16.16 | -0.68 | 55 | -0.02 | 2.92 | 2.94 | ||
| 2043 | 16.79 | 16.16 | -0.63 | 52 | -0.02 | 2.92 | 2.94 | ||
| 2044 | 16.74 | 16.16 | -0.58 | 49 | -0.02 | 2.92 | 2.94 | ||
| 2045 | 16.70 | 16.16 | -0.54 | 46 | -0.02 | 2.92 | 2.94 | ||
| 2046 | 16.66 | 16.16 | -0.50 | 44 | -0.02 | 2.92 | 2.95 | ||
| 2047 | 16.62 | 16.16 | -0.46 | 42 | -0.02 | 2.92 | 2.95 | ||
| 2048 | 16.59 | 16.16 | -0.43 | 40 | -0.03 | 2.92 | 2.95 | ||
| 2049 | 16.56 | 16.16 | -0.40 | 38 | -0.03 | 2.92 | 2.95 | ||
| 2050 | 16.54 | 16.16 | -0.38 | 36 | -0.03 | 2.92 | 2.96 | ||
| 2051 | 16.52 | 16.16 | -0.36 | 34 | -0.03 | 2.93 | 2.96 | ||
| 2052 | 16.52 | 16.16 | -0.36 | 32 | -0.04 | 2.93 | 2.96 | ||
| 2053 | 16.53 | 16.16 | -0.37 | 30 | -0.04 | 2.93 | 2.97 | ||
| 2054 | 16.55 | 16.16 | -0.39 | 29 | -0.04 | 2.93 | 2.97 | ||
| 2055 | 16.57 | 16.16 | -0.41 | 27 | -0.04 | 2.93 | 2.97 | ||
| 2056 | 16.61 | 16.17 | -0.44 | 25 | -0.05 | 2.93 | 2.98 | ||
| 2057 | 16.65 | 16.17 | -0.48 | 22 | -0.05 | 2.93 | 2.98 | ||
| 2058 | 16.69 | 16.18 | -0.51 | 20 | -0.05 | 2.93 | 2.98 | ||
| 2059 | 16.73 | 16.18 | -0.55 | 17 | -0.06 | 2.93 | 2.99 | ||
| 2060 | 16.77 | 18.89 | 2.12 | 14 | -0.06 | 5.64 | 5.70 | ||
| 2061 | 16.81 | 19.03 | 2.22 | 27 | -0.06 | 5.77 | 5.84 | ||
| 2062 | 16.85 | 19.03 | 2.18 | 40 | -0.07 | 5.78 | 5.84 | ||
| 2063 | 16.90 | 19.04 | 2.14 | 53 | -0.07 | 5.78 | 5.85 | ||
| 2064 | 16.94 | 19.04 | 2.10 | 66 | -0.08 | 5.78 | 5.85 | ||
| 2065 | 16.99 | 19.05 | 2.06 | 79 | -0.08 | 5.78 | 5.86 | ||
| 2066 | 17.03 | 19.05 | 2.02 | 92 | -0.08 | 5.78 | 5.86 | ||
| 2067 | 17.08 | 19.06 | 1.98 | 105 | -0.09 | 5.78 | 5.87 | ||
| 2068 | 17.13 | 19.06 | 1.93 | 117 | -0.09 | 5.78 | 5.87 | ||
| 2069 | 17.18 | 19.07 | 1.89 | 129 | -0.09 | 5.79 | 5.88 | ||
| 2070 | 17.23 | 19.07 | 1.84 | 141 | -0.10 | 5.79 | 5.89 | ||
| 2071 | 17.27 | 19.08 | 1.81 | 153 | -0.10 | 5.79 | 5.89 | ||
| 2072 | 17.31 | 19.08 | 1.77 | 164 | -0.11 | 5.79 | 5.90 | ||
| 2073 | 17.34 | 19.09 | 1.75 | 176 | -0.11 | 5.79 | 5.90 | ||
| 2074 | 17.37 | 19.09 | 1.72 | 188 | -0.11 | 5.80 | 5.91 | ||
| 2075 | 17.39 | 19.09 | 1.71 | 199 | -0.12 | 5.80 | 5.91 | ||
| 2076 | 17.40 | 19.10 | 1.70 | 211 | -0.12 | 5.80 | 5.92 | ||
| 2077 | 17.40 | 19.10 | 1.70 | 223 | -0.12 | 5.80 | 5.92 | ||
| 2078 | 17.40 | 19.10 | 1.70 | 235 | -0.13 | 5.80 | 5.93 | ||
| 2079 | 17.39 | 19.10 | 1.71 | 248 | -0.13 | 5.80 | 5.93 | ||
| 2080 | 17.38 | 19.10 | 1.73 | 261 | -0.13 | 5.81 | 5.94 | ||
| 2081 | 17.37 | 19.11 | 1.74 | 273 | -0.14 | 5.81 | 5.94 | ||
| 2082 | 17.37 | 19.11 | 1.74 | 286 | -0.14 | 5.81 | 5.95 | ||
| 2083 | 17.37 | 19.11 | 1.74 | 299 | -0.14 | 5.81 | 5.95 | ||
| 2084 | 17.38 | 19.11 | 1.73 | 312 | -0.14 | 5.81 | 5.96 | ||
| 2085 | 17.40 | 19.12 | 1.71 | 325 | -0.15 | 5.82 | 5.96 | ||
| 2086 | 17.43 | 19.12 | 1.69 | 338 | -0.15 | 5.82 | 5.97 | ||
| 2087 | 17.46 | 19.12 | 1.66 | 351 | -0.15 | 5.82 | 5.97 | ||
| 2088 | 17.50 | 19.13 | 1.63 | 364 | -0.16 | 5.82 | 5.98 | ||
| 2089 | 17.54 | 19.13 | 1.59 | 376 | -0.16 | 5.82 | 5.98 | ||
| 2090 | 17.59 | 19.14 | 1.55 | 388 | -0.16 | 5.83 | 5.99 | ||
| 2091 | 17.63 | 19.14 | 1.51 | 401 | -0.17 | 5.83 | 5.99 | ||
| 2092 | 17.67 | 19.15 | 1.47 | 413 | -0.17 | 5.83 | 6.00 | ||
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 | 16.62% | 17.12% | 0.51% | N/A | -0.05% | 3.28% | 3.33% | ||
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.