Proposed Provision: Phase out the income and payroll tax exclusion for employer-sponsored group health insurance (ESI) beginning in 2018. Set the exclusion at the 75th percentile of premium distribution in 2018, with amounts above that subject to tax. Reduce the exclusion level by 10 percent annually, with exclusion fully eliminated in 2028. Eliminate the excise tax on ESI.

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

Year Present Law Provision
2010355355
2011353353
2012350351
2013346346
2014341342
2015335337
2016330332
2017324326
2018317319
2019309312
2020299304
2021289297
2022277289
2023264281
2024251272
2025237264
2026221256
2027205248
2028189240
2029171232
2030154223
2031136214
2032117204
203398194
203479184
203559173
203639162
203719151
2038-1140
2039-21129
2040-42118
2041-63107
2042-8496
2043-10585
2044-12674
2045-14762
2046-16851
2047-18940
2048-21129
2049-23318
2050-2556
2051-277-5
2052-299-17
2053-321-28
2054-344-40
2055-366-52
2056-389-64
2057-412-76
2058-436-89
2059-460-102
2060-485-115
2061-509-129
2062-534-142
2063-560-156
2064-586-170
2065-612-185
2066-638-200
2067-665-215
2068-692-230
2069-720-246
2070-748-262
2071-776-278
2072-805-295
2073-834-311
2074-864-329
2075-894-347
2076-925-365
2077-957-383
2078-989-402
2079-1021-421
2080-1054-440
2081-1087-460
2082-1121-480
2083-1156-501
2084-1191-522
2085-1227-543
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