Description of Proposed Provision:
E2.4: Eliminate the taxable maximum for years 2024 and later (phased in 2018-2024), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2017 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to 134 percent of the monthly current-law taxable maximum; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.
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 | 13.27 | -0.22 | 287 | 0.00 | 0.34 | 0.34 | ||
2019 | 13.70 | 13.63 | -0.06 | 275 | -0.00 | 0.69 | 0.69 | ||
2020 | 13.85 | 13.99 | 0.14 | 266 | -0.00 | 1.03 | 1.03 | ||
2021 | 14.01 | 14.36 | 0.34 | 259 | -0.00 | 1.37 | 1.37 | ||
2022 | 14.25 | 14.71 | 0.46 | 253 | -0.00 | 1.69 | 1.69 | ||
2023 | 14.54 | 15.04 | 0.50 | 248 | -0.00 | 1.99 | 2.00 | ||
2024 | 14.82 | 15.38 | 0.56 | 245 | -0.00 | 2.30 | 2.30 | ||
2025 | 15.09 | 15.41 | 0.32 | 242 | -0.00 | 2.31 | 2.31 | ||
2026 | 15.37 | 15.44 | 0.08 | 238 | -0.00 | 2.31 | 2.31 | ||
2027 | 15.61 | 15.46 | -0.15 | 233 | -0.00 | 2.31 | 2.31 | ||
2028 | 15.85 | 15.48 | -0.37 | 229 | -0.00 | 2.31 | 2.31 | ||
2029 | 16.06 | 15.49 | -0.57 | 224 | -0.00 | 2.31 | 2.31 | ||
2030 | 16.27 | 15.51 | -0.76 | 219 | -0.00 | 2.31 | 2.31 | ||
2031 | 16.45 | 15.52 | -0.93 | 213 | 0.00 | 2.31 | 2.31 | ||
2032 | 16.61 | 15.53 | -1.08 | 208 | 0.00 | 2.31 | 2.31 | ||
2033 | 16.74 | 15.54 | -1.20 | 203 | 0.00 | 2.31 | 2.31 | ||
2034 | 16.85 | 15.55 | -1.30 | 197 | 0.00 | 2.32 | 2.31 | ||
2035 | 16.93 | 15.56 | -1.37 | 190 | 0.00 | 2.32 | 2.31 | ||
2036 | 16.99 | 15.56 | -1.43 | 184 | 0.01 | 2.32 | 2.31 | ||
2037 | 17.03 | 15.57 | -1.46 | 177 | 0.01 | 2.32 | 2.31 | ||
2038 | 17.03 | 15.57 | -1.46 | 171 | 0.01 | 2.32 | 2.31 | ||
2039 | 17.01 | 15.57 | -1.44 | 164 | 0.01 | 2.32 | 2.31 | ||
2040 | 16.97 | 15.57 | -1.40 | 158 | 0.01 | 2.32 | 2.31 | ||
2041 | 16.92 | 15.57 | -1.36 | 152 | 0.01 | 2.32 | 2.31 | ||
2042 | 16.87 | 15.57 | -1.30 | 146 | 0.01 | 2.32 | 2.31 | ||
2043 | 16.82 | 15.56 | -1.25 | 140 | 0.01 | 2.32 | 2.31 | ||
2044 | 16.77 | 15.56 | -1.21 | 135 | 0.01 | 2.32 | 2.31 | ||
2045 | 16.73 | 15.56 | -1.17 | 129 | 0.01 | 2.33 | 2.31 | ||
2046 | 16.69 | 15.56 | -1.13 | 124 | 0.01 | 2.33 | 2.31 | ||
2047 | 16.66 | 15.56 | -1.10 | 119 | 0.01 | 2.33 | 2.31 | ||
2048 | 16.63 | 15.56 | -1.07 | 114 | 0.01 | 2.33 | 2.31 | ||
2049 | 16.60 | 15.56 | -1.04 | 109 | 0.01 | 2.33 | 2.31 | ||
2050 | 16.58 | 15.56 | -1.02 | 104 | 0.02 | 2.33 | 2.31 | ||
2051 | 16.57 | 15.56 | -1.01 | 99 | 0.02 | 2.33 | 2.32 | ||
2052 | 16.57 | 15.56 | -1.01 | 95 | 0.02 | 2.33 | 2.32 | ||
2053 | 16.59 | 15.57 | -1.02 | 90 | 0.02 | 2.33 | 2.32 | ||
2054 | 16.61 | 15.57 | -1.04 | 84 | 0.02 | 2.33 | 2.32 | ||
2055 | 16.64 | 15.57 | -1.06 | 79 | 0.02 | 2.33 | 2.32 | ||
2056 | 16.67 | 15.58 | -1.10 | 74 | 0.02 | 2.34 | 2.32 | ||
2057 | 16.72 | 15.58 | -1.14 | 68 | 0.02 | 2.34 | 2.32 | ||
2058 | 16.76 | 15.58 | -1.18 | 62 | 0.02 | 2.34 | 2.32 | ||
2059 | 16.80 | 15.59 | -1.22 | 56 | 0.02 | 2.34 | 2.32 | ||
2060 | 16.85 | 15.59 | -1.26 | 49 | 0.02 | 2.34 | 2.32 | ||
2061 | 16.89 | 15.60 | -1.30 | 42 | 0.02 | 2.34 | 2.32 | ||
2062 | 16.94 | 15.60 | -1.34 | 35 | 0.02 | 2.34 | 2.32 | ||
2063 | 16.99 | 15.60 | -1.39 | 28 | 0.02 | 2.34 | 2.32 | ||
2064 | 17.04 | 15.61 | -1.43 | 20 | 0.02 | 2.34 | 2.32 | ||
2065 | 17.09 | 15.61 | -1.47 | 12 | 0.02 | 2.34 | 2.32 | ||
2066 | 17.14 | 15.62 | -1.52 | 4 | 0.02 | 2.35 | 2.32 | ||
2067 | 17.19 | 15.62 | -1.57 | ---- | 0.02 | 2.35 | 2.33 | ||
2068 | 17.24 | 15.63 | -1.62 | ---- | 0.02 | 2.35 | 2.33 | ||
2069 | 17.30 | 15.63 | -1.67 | ---- | 0.02 | 2.35 | 2.33 | ||
2070 | 17.35 | 15.64 | -1.71 | ---- | 0.02 | 2.35 | 2.33 | ||
2071 | 17.39 | 15.64 | -1.75 | ---- | 0.02 | 2.35 | 2.33 | ||
2072 | 17.44 | 15.64 | -1.79 | ---- | 0.02 | 2.35 | 2.33 | ||
2073 | 17.47 | 15.65 | -1.82 | ---- | 0.02 | 2.35 | 2.33 | ||
2074 | 17.50 | 15.65 | -1.85 | ---- | 0.02 | 2.36 | 2.33 | ||
2075 | 17.53 | 15.65 | -1.87 | ---- | 0.02 | 2.36 | 2.33 | ||
2076 | 17.54 | 15.66 | -1.89 | ---- | 0.02 | 2.36 | 2.33 | ||
2077 | 17.55 | 15.66 | -1.89 | ---- | 0.02 | 2.36 | 2.34 | ||
2078 | 17.55 | 15.66 | -1.89 | ---- | 0.02 | 2.36 | 2.34 | ||
2079 | 17.54 | 15.66 | -1.88 | ---- | 0.02 | 2.36 | 2.34 | ||
2080 | 17.53 | 15.66 | -1.87 | ---- | 0.02 | 2.36 | 2.34 | ||
2081 | 17.53 | 15.66 | -1.87 | ---- | 0.02 | 2.36 | 2.34 | ||
2082 | 17.53 | 15.66 | -1.87 | ---- | 0.02 | 2.37 | 2.34 | ||
2083 | 17.54 | 15.67 | -1.87 | ---- | 0.02 | 2.37 | 2.34 | ||
2084 | 17.55 | 15.67 | -1.89 | ---- | 0.02 | 2.37 | 2.34 | ||
2085 | 17.58 | 15.67 | -1.91 | ---- | 0.03 | 2.37 | 2.34 | ||
2086 | 17.61 | 15.67 | -1.93 | ---- | 0.03 | 2.37 | 2.35 | ||
2087 | 17.64 | 15.68 | -1.97 | ---- | 0.03 | 2.37 | 2.35 | ||
2088 | 17.68 | 15.68 | -2.00 | ---- | 0.03 | 2.37 | 2.35 | ||
2089 | 17.73 | 15.68 | -2.04 | ---- | 0.03 | 2.38 | 2.35 | ||
2090 | 17.78 | 15.69 | -2.09 | ---- | 0.03 | 2.38 | 2.35 | ||
2091 | 17.82 | 15.69 | -2.13 | ---- | 0.03 | 2.38 | 2.35 | ||
2092 | 17.87 | 15.70 | -2.17 | ---- | 0.03 | 2.38 | 2.35 |
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 | 16.68% | 16.03% | -0.65% | 2066 | 0.01% | 2.19% | 2.18% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2017 Trustees Report.