Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2018, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.
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 |
|||
2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
2018 | 13.49 | 14.19 | 0.70 | 287 | 0.00 | 1.26 | 1.26 | ||
2019 | 13.70 | 14.32 | 0.63 | 282 | -0.00 | 1.38 | 1.38 | ||
2020 | 13.85 | 14.40 | 0.55 | 277 | -0.00 | 1.44 | 1.44 | ||
2021 | 14.01 | 14.48 | 0.47 | 272 | -0.00 | 1.49 | 1.50 | ||
2022 | 14.25 | 14.57 | 0.31 | 267 | -0.00 | 1.54 | 1.55 | ||
2023 | 14.54 | 14.63 | 0.10 | 261 | -0.00 | 1.59 | 1.59 | ||
2024 | 14.82 | 14.72 | -0.10 | 254 | -0.01 | 1.63 | 1.64 | ||
2025 | 15.09 | 14.79 | -0.31 | 247 | -0.01 | 1.68 | 1.69 | ||
2026 | 15.36 | 14.87 | -0.49 | 239 | -0.01 | 1.73 | 1.74 | ||
2027 | 15.61 | 14.94 | -0.67 | 231 | -0.01 | 1.79 | 1.80 | ||
2028 | 15.84 | 15.02 | -0.83 | 223 | -0.01 | 1.85 | 1.86 | ||
2029 | 16.06 | 15.09 | -0.96 | 215 | -0.01 | 1.91 | 1.92 | ||
2030 | 16.25 | 15.17 | -1.08 | 208 | -0.01 | 1.98 | 1.99 | ||
2031 | 16.44 | 15.25 | -1.18 | 201 | -0.01 | 2.05 | 2.06 | ||
2032 | 16.59 | 15.33 | -1.26 | 194 | -0.01 | 2.12 | 2.13 | ||
2033 | 16.73 | 15.42 | -1.31 | 188 | -0.02 | 2.19 | 2.21 | ||
2034 | 16.83 | 15.50 | -1.33 | 181 | -0.02 | 2.27 | 2.28 | ||
2035 | 16.91 | 15.55 | -1.36 | 174 | -0.02 | 2.31 | 2.33 | ||
2036 | 16.97 | 15.56 | -1.41 | 168 | -0.02 | 2.31 | 2.33 | ||
2037 | 17.00 | 15.56 | -1.44 | 161 | -0.02 | 2.32 | 2.34 | ||
2038 | 17.00 | 15.56 | -1.43 | 155 | -0.02 | 2.32 | 2.34 | ||
2039 | 16.97 | 15.57 | -1.41 | 148 | -0.02 | 2.32 | 2.34 | ||
2040 | 16.94 | 15.56 | -1.37 | 142 | -0.03 | 2.32 | 2.34 | ||
2041 | 16.89 | 15.56 | -1.32 | 136 | -0.03 | 2.32 | 2.35 | ||
2042 | 16.83 | 15.56 | -1.27 | 130 | -0.03 | 2.32 | 2.35 | ||
2043 | 16.78 | 15.56 | -1.22 | 124 | -0.03 | 2.32 | 2.35 | ||
2044 | 16.73 | 15.56 | -1.17 | 119 | -0.03 | 2.32 | 2.35 | ||
2045 | 16.68 | 15.56 | -1.13 | 114 | -0.04 | 2.32 | 2.36 | ||
2046 | 16.64 | 15.56 | -1.09 | 108 | -0.04 | 2.32 | 2.36 | ||
2047 | 16.61 | 15.56 | -1.05 | 103 | -0.04 | 2.32 | 2.36 | ||
2048 | 16.57 | 15.56 | -1.02 | 98 | -0.04 | 2.32 | 2.36 | ||
2049 | 16.55 | 15.55 | -0.99 | 94 | -0.04 | 2.32 | 2.37 | ||
2050 | 16.52 | 15.55 | -0.97 | 89 | -0.05 | 2.32 | 2.37 | ||
2051 | 16.51 | 15.56 | -0.95 | 84 | -0.05 | 2.32 | 2.37 | ||
2052 | 16.51 | 15.56 | -0.95 | 79 | -0.05 | 2.32 | 2.37 | ||
2053 | 16.52 | 15.56 | -0.96 | 75 | -0.05 | 2.32 | 2.38 | ||
2054 | 16.53 | 15.56 | -0.97 | 70 | -0.06 | 2.33 | 2.38 | ||
2055 | 16.56 | 15.56 | -1.00 | 65 | -0.06 | 2.33 | 2.38 | ||
2056 | 16.60 | 15.57 | -1.03 | 59 | -0.06 | 2.33 | 2.39 | ||
2057 | 16.63 | 15.57 | -1.06 | 54 | -0.06 | 2.33 | 2.39 | ||
2058 | 16.67 | 15.57 | -1.10 | 48 | -0.07 | 2.33 | 2.39 | ||
2059 | 16.72 | 15.58 | -1.14 | 42 | -0.07 | 2.33 | 2.40 | ||
2060 | 16.76 | 15.58 | -1.18 | 36 | -0.07 | 2.33 | 2.40 | ||
2061 | 16.80 | 15.59 | -1.22 | 29 | -0.07 | 2.33 | 2.40 | ||
2062 | 16.85 | 15.59 | -1.26 | 23 | -0.07 | 2.33 | 2.40 | ||
2063 | 16.89 | 15.59 | -1.30 | 16 | -0.08 | 2.33 | 2.41 | ||
2064 | 16.94 | 15.60 | -1.34 | 8 | -0.08 | 2.33 | 2.41 | ||
2065 | 16.99 | 15.60 | -1.39 | 1 | -0.08 | 2.33 | 2.41 | ||
2066 | 17.04 | 15.61 | -1.43 | ---- | -0.08 | 2.33 | 2.42 | ||
2067 | 17.09 | 15.61 | -1.48 | ---- | -0.08 | 2.34 | 2.42 | ||
2068 | 17.14 | 15.61 | -1.52 | ---- | -0.08 | 2.34 | 2.42 | ||
2069 | 17.19 | 15.62 | -1.57 | ---- | -0.09 | 2.34 | 2.42 | ||
2070 | 17.24 | 15.62 | -1.62 | ---- | -0.09 | 2.34 | 2.43 | ||
2071 | 17.28 | 15.63 | -1.66 | ---- | -0.09 | 2.34 | 2.43 | ||
2072 | 17.32 | 15.63 | -1.69 | ---- | -0.09 | 2.34 | 2.43 | ||
2073 | 17.36 | 15.63 | -1.72 | ---- | -0.09 | 2.34 | 2.43 | ||
2074 | 17.39 | 15.64 | -1.75 | ---- | -0.09 | 2.34 | 2.43 | ||
2075 | 17.41 | 15.64 | -1.77 | ---- | -0.09 | 2.34 | 2.44 | ||
2076 | 17.43 | 15.64 | -1.78 | ---- | -0.09 | 2.34 | 2.44 | ||
2077 | 17.43 | 15.64 | -1.79 | ---- | -0.09 | 2.35 | 2.44 | ||
2078 | 17.43 | 15.65 | -1.78 | ---- | -0.09 | 2.35 | 2.44 | ||
2079 | 17.42 | 15.65 | -1.78 | ---- | -0.10 | 2.35 | 2.44 | ||
2080 | 17.42 | 15.65 | -1.77 | ---- | -0.10 | 2.35 | 2.45 | ||
2081 | 17.41 | 15.65 | -1.76 | ---- | -0.10 | 2.35 | 2.45 | ||
2082 | 17.41 | 15.65 | -1.76 | ---- | -0.10 | 2.35 | 2.45 | ||
2083 | 17.42 | 15.65 | -1.77 | ---- | -0.10 | 2.35 | 2.45 | ||
2084 | 17.43 | 15.65 | -1.78 | ---- | -0.10 | 2.35 | 2.45 | ||
2085 | 17.45 | 15.66 | -1.80 | ---- | -0.10 | 2.36 | 2.45 | ||
2086 | 17.48 | 15.66 | -1.83 | ---- | -0.10 | 2.36 | 2.45 | ||
2087 | 17.52 | 15.66 | -1.86 | ---- | -0.10 | 2.36 | 2.46 | ||
2088 | 17.56 | 15.67 | -1.89 | ---- | -0.10 | 2.36 | 2.46 | ||
2089 | 17.60 | 15.67 | -1.93 | ---- | -0.10 | 2.36 | 2.46 | ||
2090 | 17.65 | 15.67 | -1.98 | ---- | -0.10 | 2.36 | 2.46 | ||
2091 | 17.70 | 15.68 | -2.02 | ---- | -0.10 | 2.36 | 2.46 | ||
2092 | 17.75 | 15.68 | -2.06 | ---- | -0.10 | 2.37 | 2.46 |
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 | 16.62% | 15.98% | -0.64% | 2065 | -0.05% | 2.14% | 2.19% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2017 Trustees Report.