Description of Proposed Provision:
E3.7: Increase the taxable maximum by an additional 2 percent per year beginning in 2020 until taxable earnings equal 90 percent of covered earnings. Provide benefit credit for earnings up to the revised taxable maximum. Create a new bend point equal to the current-law taxable maximum with a 5 percent formula factor applying above the new bend point.

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
202014.1212.93-1.19
256
0.000.040.04
202114.2713.00-1.27
240
-0.000.080.08
202214.4413.07-1.37
223
-0.000.120.12
202314.6213.13-1.49
207
-0.000.160.16
202414.8013.19-1.61
191
0.000.200.20
202514.9813.24-1.74
175
0.000.240.24
202615.1613.40-1.76
159
0.000.270.27
202715.3713.46-1.91
144
0.000.300.30
202815.5913.51-2.08
129
0.000.340.34
202915.8013.56-2.23
114
0.000.370.37
203015.9913.61-2.38
99
0.000.410.40
203116.1713.65-2.51
84
0.010.440.43
203216.3213.70-2.63
69
0.010.470.46
203316.4613.74-2.72
53
0.010.500.49
203416.5813.78-2.80
37
0.010.530.52
203516.6713.82-2.85
21
0.010.560.55
203616.7413.85-2.89
5
0.020.590.57
203716.8013.88-2.92
----
0.020.620.60
203816.8413.92-2.93
----
0.020.650.62
203916.8613.95-2.91
----
0.030.670.65
204016.8613.97-2.89
----
0.030.700.67
204116.8414.00-2.84
----
0.030.730.69
204216.8114.02-2.79
----
0.040.750.71
204316.7814.05-2.73
----
0.040.780.73
204416.7414.07-2.67
----
0.050.800.76
204516.7114.09-2.62
----
0.050.830.77
204616.6814.12-2.57
----
0.060.850.79
204716.6614.14-2.52
----
0.060.870.81
204816.6414.16-2.48
----
0.070.890.83
204916.6314.19-2.44
----
0.070.920.85
205016.6214.21-2.41
----
0.080.940.86
205116.6214.23-2.39
----
0.080.960.88
205216.6214.25-2.37
----
0.090.980.89
205316.6414.28-2.36
----
0.101.010.91
205416.6614.30-2.36
----
0.101.030.92
205516.7014.32-2.38
----
0.111.050.94
205616.7414.33-2.41
----
0.121.050.94
205716.7914.34-2.45
----
0.121.050.93
205816.8414.34-2.50
----
0.131.050.92
205916.9014.35-2.55
----
0.141.060.92
206016.9514.35-2.60
----
0.151.060.91
206117.0114.36-2.65
----
0.151.060.91
206217.0714.36-2.71
----
0.161.060.90
206317.1314.37-2.76
----
0.171.060.89
206417.1914.37-2.82
----
0.181.060.89
206517.2514.38-2.87
----
0.181.070.88
206617.3214.39-2.93
----
0.191.070.88
206717.3814.39-2.99
----
0.201.070.87
206817.4514.40-3.05
----
0.201.070.87
206917.5114.40-3.11
----
0.211.070.86
207017.5814.41-3.17
----
0.221.070.86
207117.6414.41-3.23
----
0.221.070.85
207217.7014.42-3.28
----
0.231.080.85
207317.7514.42-3.33
----
0.241.080.84
207417.8014.43-3.37
----
0.241.080.84
207517.8314.43-3.40
----
0.251.080.83
207617.8614.44-3.43
----
0.251.080.83
207717.8814.44-3.44
----
0.261.080.83
207817.8914.44-3.45
----
0.261.080.82
207917.8814.44-3.44
----
0.261.090.82
208017.8714.44-3.43
----
0.271.090.82
208117.8614.44-3.42
----
0.271.090.82
208217.8514.44-3.40
----
0.271.090.81
208317.8314.44-3.39
----
0.281.090.81
208417.8214.44-3.38
----
0.281.090.81
208517.8114.44-3.37
----
0.281.090.81
208617.8114.44-3.37
----
0.281.090.81
208717.8214.44-3.37
----
0.291.090.81
208817.8314.45-3.39
----
0.291.090.81
208917.8614.45-3.41
----
0.291.100.80
209017.8914.45-3.44
----
0.291.100.80
209117.9314.45-3.48
----
0.301.100.80
209217.9814.46-3.52
----
0.301.100.80
209318.0214.46-3.56
----
0.301.100.80


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 16.80% 14.61% -2.19%
2036
0.11% 0.77% 0.66%

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