Description of Proposed Provision:
E2.12: Eliminate the taxable maximum in years 2029 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2020, 2.48 percent in 2021, and so on, up to 12.40 percent in 2029. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at the current-law taxable maximum with a 3 percent formula factor applying above the new bend point.

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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.000.00
201913.7012.95-0.75
273
0.00-0.00-0.00
202013.8513.20-0.65
259
0.000.240.24
202114.0213.48-0.54
246
-0.000.490.49
202214.2613.75-0.50
235
-0.000.730.73
202314.5414.01-0.53
225
-0.000.960.96
202414.8314.28-0.55
215
0.001.191.19
202515.1014.53-0.57
205
0.001.421.42
202615.3814.78-0.59
197
0.011.651.64
202715.6315.02-0.61
189
0.011.871.86
202815.8715.26-0.61
182
0.022.092.07
202916.0915.49-0.60
176
0.022.302.28
203016.3015.51-0.78
171
0.032.322.29
203116.4915.52-0.96
166
0.042.322.28
203216.6515.54-1.12
160
0.052.322.27
203316.8015.55-1.25
154
0.062.322.26
203416.9215.56-1.36
148
0.072.322.26
203517.0115.56-1.44
141
0.082.322.25
203617.0815.57-1.51
133
0.092.332.24
203717.1215.58-1.54
126
0.102.332.23
203817.1315.58-1.55
118
0.112.332.22
203917.1215.58-1.53
111
0.122.332.21
204017.0915.58-1.51
103
0.132.332.21
204117.0515.58-1.47
96
0.142.342.20
204217.0115.58-1.42
89
0.152.342.19
204316.9615.58-1.38
82
0.152.342.19
204416.9215.58-1.34
75
0.162.342.18
204516.8915.58-1.31
68
0.172.342.17
204616.8615.58-1.28
61
0.182.352.17
204716.8315.58-1.25
55
0.192.352.16
204816.8115.58-1.23
48
0.192.352.16
204916.7915.58-1.21
41
0.202.352.15
205016.7715.58-1.19
35
0.212.352.15
205116.7715.58-1.18
28
0.212.352.14
205216.7715.59-1.19
22
0.222.352.14
205316.7915.59-1.20
15
0.222.362.13
205416.8215.59-1.22
8
0.232.362.13
205516.8515.60-1.26
1
0.232.362.13
205616.8915.60-1.29
----
0.242.362.12
205716.9415.61-1.33
----
0.242.362.12
205816.9915.61-1.38
----
0.252.362.12
205917.0315.61-1.42
----
0.252.362.11
206017.0815.62-1.46
----
0.252.372.11
206117.1315.62-1.51
----
0.262.372.11
206217.1815.63-1.55
----
0.262.372.11
206317.2315.63-1.60
----
0.262.372.11
206417.2815.64-1.64
----
0.262.372.11
206517.3315.64-1.69
----
0.262.372.11
206617.3815.65-1.74
----
0.262.372.11
206717.4315.65-1.78
----
0.262.382.11
206817.4915.65-1.83
----
0.262.382.11
206917.5415.66-1.88
----
0.262.382.11
207017.5915.66-1.93
----
0.262.382.11
207117.6415.67-1.97
----
0.262.382.12
207217.6815.67-2.00
----
0.262.382.12
207317.7115.67-2.04
----
0.262.382.12
207417.7415.68-2.06
----
0.262.382.12
207517.7615.68-2.08
----
0.262.382.12
207617.7815.68-2.10
----
0.262.392.13
207717.7815.69-2.10
----
0.262.392.13
207817.7815.69-2.09
----
0.262.392.13
207917.7715.69-2.09
----
0.262.392.13
208017.7715.69-2.08
----
0.262.392.13
208117.7615.69-2.07
----
0.252.392.14
208217.7615.69-2.07
----
0.252.392.14
208317.7615.69-2.07
----
0.252.392.14
208417.7815.69-2.09
----
0.252.402.14
208517.8015.70-2.11
----
0.252.402.15
208617.8315.70-2.13
----
0.252.402.15
208717.8715.70-2.17
----
0.252.402.15
208817.9115.71-2.20
----
0.252.402.15
208917.9515.71-2.24
----
0.252.402.15
209018.0015.71-2.29
----
0.252.402.15
209118.0515.72-2.33
----
0.252.402.15
209218.1015.72-2.37
----
0.252.412.15


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 16.82% 15.92% -0.91%
2055
0.16% 2.08% 1.92%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.