Description of Proposed Provision:
E3.15: Increase the taxable maximum such that 90 percent of earnings are subject to the payroll tax (phased in 2018-2027). In addition, apply a tax rate of 6.2 percent for earnings above the revised taxable maximum (phased in from 2018-2027). Provide benefit credit for earnings taxed up to the revised taxable maximum.
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 | 13.17 | -0.31 | 287 | 0.00 | 0.24 | 0.24 | ||
2019 | 13.70 | 13.42 | -0.28 | 275 | -0.00 | 0.47 | 0.47 | ||
2020 | 13.85 | 13.65 | -0.21 | 264 | -0.00 | 0.68 | 0.68 | ||
2021 | 14.02 | 13.86 | -0.15 | 254 | -0.00 | 0.87 | 0.87 | ||
2022 | 14.26 | 14.06 | -0.20 | 245 | -0.00 | 1.04 | 1.04 | ||
2023 | 14.54 | 14.23 | -0.31 | 237 | 0.00 | 1.18 | 1.18 | ||
2024 | 14.83 | 14.40 | -0.43 | 228 | 0.00 | 1.32 | 1.32 | ||
2025 | 15.10 | 14.55 | -0.56 | 219 | 0.00 | 1.44 | 1.44 | ||
2026 | 15.38 | 14.69 | -0.69 | 210 | 0.01 | 1.56 | 1.55 | ||
2027 | 15.63 | 14.81 | -0.81 | 201 | 0.01 | 1.66 | 1.65 | ||
2028 | 15.87 | 14.83 | -1.03 | 193 | 0.01 | 1.67 | 1.65 | ||
2029 | 16.08 | 14.85 | -1.23 | 184 | 0.02 | 1.67 | 1.65 | ||
2030 | 16.29 | 14.87 | -1.42 | 175 | 0.02 | 1.67 | 1.65 | ||
2031 | 16.48 | 14.88 | -1.60 | 166 | 0.03 | 1.67 | 1.64 | ||
2032 | 16.64 | 14.89 | -1.75 | 157 | 0.04 | 1.67 | 1.64 | ||
2033 | 16.78 | 14.90 | -1.88 | 147 | 0.04 | 1.67 | 1.63 | ||
2034 | 16.90 | 14.91 | -1.99 | 137 | 0.05 | 1.68 | 1.63 | ||
2035 | 16.98 | 14.92 | -2.07 | 127 | 0.06 | 1.68 | 1.62 | ||
2036 | 17.05 | 14.92 | -2.13 | 116 | 0.06 | 1.68 | 1.62 | ||
2037 | 17.09 | 14.93 | -2.16 | 104 | 0.07 | 1.68 | 1.61 | ||
2038 | 17.10 | 14.93 | -2.17 | 93 | 0.08 | 1.68 | 1.60 | ||
2039 | 17.08 | 14.93 | -2.15 | 82 | 0.09 | 1.68 | 1.60 | ||
2040 | 17.06 | 14.93 | -2.12 | 70 | 0.09 | 1.69 | 1.59 | ||
2041 | 17.02 | 14.93 | -2.08 | 59 | 0.10 | 1.69 | 1.59 | ||
2042 | 16.97 | 14.93 | -2.04 | 48 | 0.11 | 1.69 | 1.58 | ||
2043 | 16.92 | 14.93 | -1.99 | 37 | 0.12 | 1.69 | 1.57 | ||
2044 | 16.89 | 14.93 | -1.95 | 26 | 0.13 | 1.69 | 1.57 | ||
2045 | 16.85 | 14.93 | -1.92 | 15 | 0.14 | 1.69 | 1.56 | ||
2046 | 16.82 | 14.93 | -1.89 | 4 | 0.14 | 1.70 | 1.55 | ||
2047 | 16.80 | 14.93 | -1.87 | ---- | 0.15 | 1.70 | 1.54 | ||
2048 | 16.78 | 14.93 | -1.85 | ---- | 0.16 | 1.70 | 1.54 | ||
2049 | 16.76 | 14.93 | -1.83 | ---- | 0.17 | 1.70 | 1.53 | ||
2050 | 16.75 | 14.94 | -1.81 | ---- | 0.18 | 1.70 | 1.52 | ||
2051 | 16.75 | 14.94 | -1.81 | ---- | 0.19 | 1.71 | 1.51 | ||
2052 | 16.76 | 14.94 | -1.82 | ---- | 0.20 | 1.71 | 1.51 | ||
2053 | 16.78 | 14.94 | -1.84 | ---- | 0.21 | 1.71 | 1.50 | ||
2054 | 16.81 | 14.95 | -1.86 | ---- | 0.22 | 1.71 | 1.49 | ||
2055 | 16.85 | 14.95 | -1.90 | ---- | 0.23 | 1.71 | 1.48 | ||
2056 | 16.90 | 14.96 | -1.94 | ---- | 0.24 | 1.72 | 1.47 | ||
2057 | 16.95 | 14.96 | -1.99 | ---- | 0.25 | 1.72 | 1.47 | ||
2058 | 17.00 | 14.97 | -2.04 | ---- | 0.26 | 1.72 | 1.46 | ||
2059 | 17.06 | 14.97 | -2.09 | ---- | 0.27 | 1.72 | 1.45 | ||
2060 | 17.11 | 14.98 | -2.14 | ---- | 0.28 | 1.72 | 1.44 | ||
2061 | 17.17 | 14.98 | -2.19 | ---- | 0.29 | 1.73 | 1.43 | ||
2062 | 17.22 | 14.99 | -2.24 | ---- | 0.30 | 1.73 | 1.43 | ||
2063 | 17.28 | 14.99 | -2.29 | ---- | 0.31 | 1.73 | 1.42 | ||
2064 | 17.34 | 15.00 | -2.34 | ---- | 0.32 | 1.73 | 1.41 | ||
2065 | 17.40 | 15.00 | -2.39 | ---- | 0.33 | 1.73 | 1.41 | ||
2066 | 17.45 | 15.01 | -2.45 | ---- | 0.34 | 1.74 | 1.40 | ||
2067 | 17.51 | 15.01 | -2.50 | ---- | 0.34 | 1.74 | 1.39 | ||
2068 | 17.57 | 15.02 | -2.56 | ---- | 0.35 | 1.74 | 1.39 | ||
2069 | 17.63 | 15.02 | -2.61 | ---- | 0.36 | 1.74 | 1.38 | ||
2070 | 17.69 | 15.03 | -2.66 | ---- | 0.37 | 1.74 | 1.38 | ||
2071 | 17.75 | 15.03 | -2.71 | ---- | 0.37 | 1.75 | 1.37 | ||
2072 | 17.79 | 15.04 | -2.75 | ---- | 0.38 | 1.75 | 1.37 | ||
2073 | 17.83 | 15.04 | -2.79 | ---- | 0.38 | 1.75 | 1.37 | ||
2074 | 17.87 | 15.05 | -2.82 | ---- | 0.39 | 1.75 | 1.36 | ||
2075 | 17.90 | 15.05 | -2.85 | ---- | 0.39 | 1.75 | 1.36 | ||
2076 | 17.92 | 15.05 | -2.86 | ---- | 0.40 | 1.76 | 1.36 | ||
2077 | 17.93 | 15.06 | -2.87 | ---- | 0.40 | 1.76 | 1.36 | ||
2078 | 17.93 | 15.06 | -2.87 | ---- | 0.40 | 1.76 | 1.35 | ||
2079 | 17.92 | 15.06 | -2.87 | ---- | 0.41 | 1.76 | 1.35 | ||
2080 | 17.92 | 15.06 | -2.86 | ---- | 0.41 | 1.76 | 1.35 | ||
2081 | 17.92 | 15.06 | -2.86 | ---- | 0.41 | 1.76 | 1.35 | ||
2082 | 17.92 | 15.06 | -2.86 | ---- | 0.41 | 1.76 | 1.35 | ||
2083 | 17.93 | 15.06 | -2.86 | ---- | 0.41 | 1.77 | 1.35 | ||
2084 | 17.94 | 15.07 | -2.88 | ---- | 0.42 | 1.77 | 1.35 | ||
2085 | 17.97 | 15.07 | -2.90 | ---- | 0.42 | 1.77 | 1.35 | ||
2086 | 18.00 | 15.07 | -2.93 | ---- | 0.42 | 1.77 | 1.35 | ||
2087 | 18.04 | 15.07 | -2.96 | ---- | 0.42 | 1.77 | 1.35 | ||
2088 | 18.08 | 15.08 | -3.00 | ---- | 0.42 | 1.77 | 1.35 | ||
2089 | 18.13 | 15.08 | -3.04 | ---- | 0.43 | 1.77 | 1.35 | ||
2090 | 18.18 | 15.09 | -3.09 | ---- | 0.43 | 1.78 | 1.35 | ||
2091 | 18.23 | 15.09 | -3.13 | ---- | 0.43 | 1.78 | 1.35 | ||
2092 | 18.27 | 15.10 | -3.18 | ---- | 0.43 | 1.78 | 1.35 |
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 | 16.86% | 15.42% | -1.43% | 2046 | 0.19% | 1.58% | 1.39% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2017 Trustees Report.