Description of Proposed Provision:
E2.11: Eliminate the taxable maximum in years 2024 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 2.48 percent in 2020, 4.96 percent in 2021, and so on, up to 12.40 percent in 2024. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2019 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1213.37-0.76
256
0.000.470.47
202114.2713.88-0.39
243
-0.000.960.97
202214.4414.38-0.06
232
-0.001.431.44
202314.6214.850.23
224
-0.001.891.89
202414.8015.310.51
219
-0.002.322.32
202514.9815.340.36
216
-0.002.342.34
202615.1615.450.30
212
-0.002.322.32
202715.3715.460.10
209
0.002.312.31
202815.5915.48-0.11
205
0.002.312.30
202915.8015.50-0.30
201
0.012.312.30
203015.9915.51-0.48
197
0.012.312.30
203116.1715.53-0.65
193
0.012.312.30
203216.3315.54-0.79
188
0.022.312.30
203316.4715.55-0.92
184
0.022.312.29
203416.5915.56-1.03
180
0.022.322.29
203516.6815.57-1.11
175
0.032.322.29
203616.7615.58-1.18
170
0.032.322.28
203716.8215.58-1.24
164
0.042.322.28
203816.8615.59-1.27
158
0.042.322.28
203916.8815.59-1.28
153
0.052.322.28
204016.8815.60-1.28
147
0.052.322.27
204116.8615.60-1.27
141
0.052.322.27
204216.8315.60-1.24
136
0.062.332.27
204316.8015.60-1.20
130
0.062.332.26
204416.7615.60-1.16
125
0.072.332.26
204516.7315.60-1.13
119
0.072.332.26
204616.7015.60-1.11
114
0.082.332.25
204716.6815.60-1.08
109
0.082.332.25
204816.6615.60-1.06
104
0.092.332.25
204916.6415.60-1.04
99
0.092.332.24
205016.6415.60-1.03
94
0.092.342.24
205116.6315.61-1.03
89
0.102.342.24
205216.6415.61-1.03
84
0.102.342.24
205316.6515.61-1.04
79
0.112.342.23
205416.6715.61-1.06
73
0.112.342.23
205516.7115.62-1.09
68
0.122.342.23
205616.7415.62-1.12
62
0.122.342.22
205716.7915.63-1.16
56
0.122.352.22
205816.8415.63-1.21
50
0.132.352.22
205916.8915.64-1.25
43
0.132.352.22
206016.9515.64-1.30
37
0.142.352.21
206117.0015.65-1.35
29
0.142.352.21
206217.0515.66-1.40
22
0.142.352.21
206317.1115.66-1.45
14
0.152.352.21
206417.1715.67-1.50
6
0.152.362.20
206517.2215.67-1.55
----
0.152.362.20
206617.2815.68-1.61
----
0.162.362.20
206717.3415.68-1.66
----
0.162.362.20
206817.4115.69-1.72
----
0.162.362.20
206917.4715.69-1.78
----
0.172.362.20
207017.5315.70-1.83
----
0.172.362.20
207117.5915.70-1.89
----
0.172.372.19
207217.6415.71-1.93
----
0.172.372.19
207317.6915.71-1.97
----
0.182.372.19
207417.7315.72-2.01
----
0.182.372.19
207517.7715.72-2.04
----
0.182.372.19
207617.7915.73-2.06
----
0.182.372.19
207717.8115.73-2.08
----
0.182.372.19
207817.8115.73-2.08
----
0.182.382.19
207917.8015.73-2.07
----
0.182.382.19
208017.7915.73-2.06
----
0.182.382.19
208117.7715.73-2.04
----
0.192.382.19
208217.7615.73-2.02
----
0.192.382.20
208317.7415.73-2.01
----
0.192.382.20
208417.7315.73-1.99
----
0.192.382.20
208517.7215.74-1.98
----
0.192.382.20
208617.7215.74-1.98
----
0.192.392.20
208717.7215.74-1.98
----
0.192.392.20
208817.7315.74-1.99
----
0.192.392.20
208917.7615.74-2.01
----
0.192.392.20
209017.7915.75-2.04
----
0.192.392.20
209117.8315.75-2.08
----
0.192.392.20
209217.8715.75-2.12
----
0.192.392.20
209317.9215.76-2.16
----
0.192.402.20


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2018-2092 16.78% 16.05% -0.73%
2064
0.09% 2.20% 2.11%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.