Summary Measures and Graphs

Description of Proposed Provision:
E3.15: Increase the taxable maximum such that 90 percent of earnings are subject to the payroll tax (phased in 2021-2030). In addition, apply a tax rate of 6.2 percent for earnings above the revised taxable maximum (phased in from 2021-2030). Provide benefit credit for earnings taxed up to the revised taxable maximum.

Estimates based on the intermediate assumptions of the 2020 Trustees Report
Summary Measures
Current law
[percent of payroll]		 Change from current law
[percent of payroll]		 Shortfall eliminated
Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year
-3.21 -4.51 1.35 1.26 42% 28%

graph of OASDI cost rates and income rates by year, under current law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under current law and provision. click on graph to view underlying data.