Description of Proposed Provision:
E2.10: Eliminate the taxable maximum in years 2028 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2019, 2.48 percent in 2020, and so on, up to 12.40 percent in 2028. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at 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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.000.00
201913.7013.18-0.51
273
0.000.240.24
202013.8513.45-0.41
260
-0.000.490.49
202114.0213.72-0.29
250
-0.000.730.73
202214.2613.99-0.26
240
-0.000.970.97
202314.5514.24-0.30
231
0.001.201.20
202414.8314.51-0.32
222
0.001.421.42
202515.1014.75-0.35
214
0.011.651.64
202615.3815.00-0.38
207
0.011.871.86
202715.6315.24-0.39
200
0.022.092.07
202815.8715.47-0.40
194
0.022.302.28
202916.1015.50-0.60
189
0.032.312.28
203016.3115.51-0.79
184
0.042.322.28
203116.5015.53-0.97
179
0.052.322.27
203216.6715.54-1.13
173
0.062.322.26
203316.8115.55-1.26
167
0.072.322.25
203416.9315.56-1.37
161
0.082.322.24
203517.0215.57-1.45
154
0.092.332.23
203617.0915.57-1.52
147
0.112.332.22
203717.1415.58-1.56
139
0.122.332.21
203817.1515.58-1.57
132
0.132.332.20
203917.1415.58-1.55
124
0.142.342.20
204017.1115.58-1.53
117
0.152.342.19
204117.0715.58-1.49
109
0.162.342.18
204217.0315.58-1.45
102
0.172.342.17
204316.9915.58-1.40
95
0.182.342.16
204416.9515.58-1.37
88
0.192.352.16
204516.9215.58-1.33
81
0.202.352.15
204616.8915.58-1.30
75
0.212.352.14
204716.8615.59-1.28
68
0.222.352.13
204816.8415.59-1.26
61
0.232.352.12
204916.8315.59-1.24
55
0.242.352.12
205016.8115.59-1.22
48
0.252.362.11
205116.8115.59-1.22
42
0.252.362.10
205216.8215.59-1.23
35
0.262.362.10
205316.8415.60-1.24
28
0.272.362.09
205416.8715.60-1.27
21
0.282.362.09
205516.9015.60-1.30
14
0.292.372.08
205616.9515.61-1.34
7
0.292.372.07
205717.0015.61-1.38
----
0.302.372.07
205817.0515.62-1.43
----
0.312.372.06
205917.1015.62-1.48
----
0.312.372.06
206017.1515.63-1.52
----
0.322.372.05
206117.2015.63-1.57
----
0.332.382.05
206217.2515.64-1.62
----
0.332.382.05
206317.3115.64-1.66
----
0.332.382.04
206417.3615.65-1.71
----
0.342.382.04
206517.4115.65-1.76
----
0.342.382.04
206617.4615.65-1.81
----
0.342.382.04
206717.5215.66-1.86
----
0.352.382.04
206817.5715.66-1.91
----
0.352.392.04
206917.6315.67-1.96
----
0.352.392.04
207017.6815.67-2.01
----
0.352.392.03
207117.7315.68-2.05
----
0.362.392.03
207217.7715.68-2.09
----
0.362.392.03
207317.8115.69-2.12
----
0.362.392.03
207417.8415.69-2.15
----
0.362.392.03
207517.8615.69-2.17
----
0.362.402.03
207617.8815.70-2.19
----
0.362.402.04
207717.8915.70-2.19
----
0.362.402.04
207817.8915.70-2.19
----
0.362.402.04
207917.8815.70-2.18
----
0.362.402.04
208017.8715.70-2.17
----
0.362.402.04
208117.8715.70-2.17
----
0.362.402.04
208217.8715.70-2.16
----
0.362.412.04
208317.8715.70-2.17
----
0.362.412.05
208417.8915.71-2.18
----
0.362.412.05
208517.9115.71-2.20
----
0.362.412.05
208617.9415.71-2.23
----
0.362.412.05
208717.9815.72-2.26
----
0.362.412.05
208818.0215.72-2.30
----
0.362.412.05
208918.0715.72-2.34
----
0.362.412.05
209018.1115.73-2.39
----
0.372.422.05
209118.1615.73-2.43
----
0.372.422.05
209218.2115.74-2.47
----
0.372.422.05


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 16.87% 15.96% -0.91%
2056
0.21% 2.12% 1.91%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.