Description of Proposed Provision:
E3.6: Increase the taxable maximum each year by an additional 2 percent beginning in 2021 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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 14.12 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.27 | 12.96 | -1.31 | 239 | 0.00 | 0.04 | 0.04 | ||
| 2022 | 14.44 | 13.03 | -1.41 | 223 | -0.00 | 0.08 | 0.08 | ||
| 2023 | 14.62 | 13.09 | -1.53 | 206 | -0.00 | 0.12 | 0.12 | ||
| 2024 | 14.80 | 13.15 | -1.65 | 190 | -0.00 | 0.16 | 0.16 | ||
| 2025 | 14.98 | 13.21 | -1.78 | 174 | -0.00 | 0.20 | 0.20 | ||
| 2026 | 15.16 | 13.37 | -1.79 | 158 | -0.00 | 0.23 | 0.24 | ||
| 2027 | 15.36 | 13.42 | -1.94 | 142 | -0.00 | 0.27 | 0.27 | ||
| 2028 | 15.58 | 13.48 | -2.11 | 127 | -0.00 | 0.30 | 0.30 | ||
| 2029 | 15.79 | 13.53 | -2.26 | 112 | -0.00 | 0.34 | 0.34 | ||
| 2030 | 15.98 | 13.57 | -2.41 | 97 | -0.00 | 0.37 | 0.37 | ||
| 2031 | 16.16 | 13.62 | -2.54 | 82 | -0.00 | 0.41 | 0.41 | ||
| 2032 | 16.32 | 13.66 | -2.65 | 66 | -0.00 | 0.44 | 0.44 | ||
| 2033 | 16.45 | 13.71 | -2.74 | 51 | -0.00 | 0.47 | 0.47 | ||
| 2034 | 16.56 | 13.75 | -2.82 | 35 | -0.00 | 0.50 | 0.50 | ||
| 2035 | 16.65 | 13.78 | -2.87 | 18 | -0.00 | 0.53 | 0.53 | ||
| 2036 | 16.72 | 13.82 | -2.90 | 2 | -0.00 | 0.56 | 0.56 | ||
| 2037 | 16.78 | 13.85 | -2.93 | ---- | -0.00 | 0.59 | 0.59 | ||
| 2038 | 16.82 | 13.88 | -2.93 | ---- | -0.00 | 0.61 | 0.62 | ||
| 2039 | 16.83 | 13.91 | -2.91 | ---- | -0.00 | 0.64 | 0.65 | ||
| 2040 | 16.82 | 13.94 | -2.88 | ---- | -0.00 | 0.67 | 0.67 | ||
| 2041 | 16.81 | 13.97 | -2.84 | ---- | -0.00 | 0.70 | 0.70 | ||
| 2042 | 16.77 | 13.99 | -2.78 | ---- | -0.00 | 0.72 | 0.73 | ||
| 2043 | 16.73 | 14.02 | -2.71 | ---- | -0.01 | 0.75 | 0.75 | ||
| 2044 | 16.69 | 14.04 | -2.65 | ---- | -0.01 | 0.77 | 0.78 | ||
| 2045 | 16.65 | 14.06 | -2.59 | ---- | -0.01 | 0.80 | 0.80 | ||
| 2046 | 16.62 | 14.09 | -2.53 | ---- | -0.01 | 0.82 | 0.83 | ||
| 2047 | 16.59 | 14.11 | -2.48 | ---- | -0.01 | 0.84 | 0.85 | ||
| 2048 | 16.57 | 14.13 | -2.44 | ---- | -0.01 | 0.86 | 0.87 | ||
| 2049 | 16.55 | 14.15 | -2.39 | ---- | -0.01 | 0.89 | 0.89 | ||
| 2050 | 16.53 | 14.18 | -2.36 | ---- | -0.01 | 0.91 | 0.92 | ||
| 2051 | 16.52 | 14.20 | -2.33 | ---- | -0.01 | 0.93 | 0.94 | ||
| 2052 | 16.52 | 14.22 | -2.30 | ---- | -0.01 | 0.95 | 0.96 | ||
| 2053 | 16.53 | 14.24 | -2.29 | ---- | -0.01 | 0.97 | 0.98 | ||
| 2054 | 16.55 | 14.27 | -2.28 | ---- | -0.01 | 0.99 | 1.01 | ||
| 2055 | 16.58 | 14.29 | -2.29 | ---- | -0.01 | 1.01 | 1.03 | ||
| 2056 | 16.61 | 14.31 | -2.30 | ---- | -0.01 | 1.03 | 1.05 | ||
| 2057 | 16.65 | 14.32 | -2.33 | ---- | -0.02 | 1.04 | 1.05 | ||
| 2058 | 16.70 | 14.32 | -2.37 | ---- | -0.02 | 1.04 | 1.05 | ||
| 2059 | 16.74 | 14.33 | -2.41 | ---- | -0.02 | 1.04 | 1.05 | ||
| 2060 | 16.79 | 14.33 | -2.46 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2061 | 16.84 | 14.34 | -2.50 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2062 | 16.89 | 14.34 | -2.55 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2063 | 16.94 | 14.35 | -2.59 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2064 | 16.99 | 14.35 | -2.64 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2065 | 17.05 | 14.36 | -2.69 | ---- | -0.02 | 1.04 | 1.06 | ||
| 2066 | 17.10 | 14.36 | -2.74 | ---- | -0.02 | 1.04 | 1.07 | ||
| 2067 | 17.16 | 14.37 | -2.79 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2068 | 17.22 | 14.37 | -2.85 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2069 | 17.28 | 14.37 | -2.90 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2070 | 17.34 | 14.38 | -2.96 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2071 | 17.39 | 14.38 | -3.01 | ---- | -0.03 | 1.04 | 1.07 | ||
| 2072 | 17.44 | 14.39 | -3.05 | ---- | -0.03 | 1.05 | 1.08 | ||
| 2073 | 17.48 | 14.39 | -3.09 | ---- | -0.03 | 1.05 | 1.08 | ||
| 2074 | 17.52 | 14.40 | -3.12 | ---- | -0.03 | 1.05 | 1.08 | ||
| 2075 | 17.55 | 14.40 | -3.15 | ---- | -0.03 | 1.05 | 1.08 | ||
| 2076 | 17.58 | 14.40 | -3.17 | ---- | -0.03 | 1.05 | 1.08 | ||
| 2077 | 17.59 | 14.40 | -3.18 | ---- | -0.04 | 1.05 | 1.08 | ||
| 2078 | 17.59 | 14.41 | -3.18 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2079 | 17.58 | 14.41 | -3.18 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2080 | 17.57 | 14.41 | -3.16 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2081 | 17.55 | 14.41 | -3.14 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2082 | 17.53 | 14.41 | -3.13 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2083 | 17.51 | 14.41 | -3.11 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2084 | 17.50 | 14.40 | -3.10 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2085 | 17.49 | 14.40 | -3.09 | ---- | -0.04 | 1.05 | 1.09 | ||
| 2086 | 17.49 | 14.41 | -3.08 | ---- | -0.04 | 1.05 | 1.10 | ||
| 2087 | 17.49 | 14.41 | -3.09 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2088 | 17.50 | 14.41 | -3.10 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2089 | 17.53 | 14.41 | -3.12 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2090 | 17.56 | 14.41 | -3.14 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2091 | 17.59 | 14.41 | -3.18 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2092 | 17.63 | 14.42 | -3.22 | ---- | -0.04 | 1.06 | 1.10 | ||
| 2093 | 17.68 | 14.42 | -3.26 | ---- | -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 |
||
| 2018-2092 | 16.67% | 14.58% | -2.09% | 2036 | -0.01% | 0.74% | 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 2018 Trustees Report.