Proposed Provision: C1.5. Starting in 2021, allow workers to choose whether to have their payroll tax rate reduced by 2 percentage points. For each calendar year that a worker chooses to have their payroll tax reduced, their normal retirement age (NRA) increases 1 month. We assume 2/3 of workers each year will choose this payroll reduction. The General Fund of the Treasury reimburses the OASI and DI Trust Funds for the reduction in payroll tax revenue.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2020261261
2021248248
2022233233
2023217217
2024200200
2025183183
2026165166
2027148149
2028130131
2029112114
20309496
20317678
20325860
20333943
20342024
203516
2036-19-13
2037-38-32
2038-59-51
2039-80-71
2040-101-91
2041-122-111
2042-144-131
2043-166-152
2044-188-172
2045-210-193
2046-232-213
2047-255-234
2048-277-254
2049-299-275
2050-322-295
2051-344-315
2052-367-335
2053-389-355
2054-412-375
2055-434-395
2056-457-415
2057-480-435
2058-504-455
2059-527-475
2060-551-495
2061-575-515
2062-599-535
2063-624-555
2064-650-576
2065-676-597
2066-702-618
2067-728-640
2068-755-661
2069-782-683
2070-809-705
2071-837-728
2072-866-751
2073-895-775
2074-925-799
2075-955-823
2076-986-848
2077-1018-874
2078-1051-900
2079-1084-927
2080-1119-955
2081-1154-984
2082-1190-1013
2083-1226-1042
2084-1263-1071
2085-1300-1101
2086-1337-1131
2087-1374-1161
2088-1411-1192
2089-1448-1221
2090-1484-1251
2091-1520-1280
2092-1554-1309
2093-1589-1337
2094-1623-1365
2095-1657-1392
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