Proposed Provision: Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2018, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2018, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2018 exclusion level until fully eliminated in 2028. Eliminate the excise tax on ESI premiums scheduled to begin in 2018.

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

Year Present Law Provision
2015308308
2016298298
2017280280
2018264264
2019248249
2020233236
2021219225
2022204214
2023189203
2024173194
2025157185
2026142177
2027126170
2028110163
202994157
203077150
203160143
203242134
203323126
20344117
2035-16107
2036-3697
2037-5787
2038-7876
2039-10066
2040-12255
2041-14443
2042-16632
2043-18921
2044-2119
2045-234-2
2046-257-14
2047-280-26
2048-303-39
2049-327-51
2050-351-64
2051-375-77
2052-398-90
2053-423-104
2054-447-118
2055-472-132
2056-496-147
2057-522-162
2058-548-178
2059-574-194
2060-601-211
2061-629-228
2062-657-246
2063-685-264
2064-714-283
2065-744-302
2066-774-321
2067-804-341
2068-835-362
2069-867-383
2070-899-404
2071-932-426
2072-965-449
2073-1000-472
2074-1035-496
2075-1072-520
2076-1110-545
2077-1148-571
2078-1188-597
2079-1228-623
2080-1268-650
2081-1309-677
2082-1350-704
2083-1391-731
2084-1432-757
2085-1472-784
2086-1514-812
2087-1555-839
2088-1597-867
2089-1640-895
2090-1683-924
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