Description of Proposed Provision:
F5: Tax Reform for Business: Establish a value added tax of 3.0 percent for 2019 and 6.5 percent for 2020 and later. Starting in 2019, reduce the corporate income tax rate from 35 to 27 percent.
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 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.49 | -1.20 | 273 | -0.00 | -0.45 | -0.45 | ||
| 2020 | 13.85 | 12.49 | -1.36 | 256 | -0.00 | -0.47 | -0.47 | ||
| 2021 | 14.01 | 12.52 | -1.49 | 239 | -0.00 | -0.47 | -0.47 | ||
| 2022 | 14.24 | 12.55 | -1.69 | 221 | -0.02 | -0.47 | -0.46 | ||
| 2023 | 14.51 | 12.57 | -1.94 | 203 | -0.03 | -0.47 | -0.44 | ||
| 2024 | 14.78 | 12.61 | -2.17 | 185 | -0.05 | -0.48 | -0.43 | ||
| 2025 | 15.03 | 12.63 | -2.40 | 166 | -0.07 | -0.48 | -0.41 | ||
| 2026 | 15.27 | 12.66 | -2.62 | 147 | -0.10 | -0.48 | -0.38 | ||
| 2027 | 15.49 | 12.67 | -2.82 | 128 | -0.13 | -0.48 | -0.35 | ||
| 2028 | 15.70 | 12.69 | -3.01 | 108 | -0.16 | -0.48 | -0.32 | ||
| 2029 | 15.88 | 12.70 | -3.18 | 89 | -0.19 | -0.48 | -0.29 | ||
| 2030 | 16.05 | 12.71 | -3.33 | 69 | -0.22 | -0.48 | -0.26 | ||
| 2031 | 16.20 | 12.72 | -3.47 | 48 | -0.25 | -0.49 | -0.23 | ||
| 2032 | 16.33 | 12.73 | -3.60 | 28 | -0.28 | -0.49 | -0.21 | ||
| 2033 | 16.43 | 12.74 | -3.69 | 6 | -0.31 | -0.49 | -0.18 | ||
| 2034 | 16.51 | 12.74 | -3.77 | ---- | -0.33 | -0.49 | -0.16 | ||
| 2035 | 16.57 | 12.75 | -3.82 | ---- | -0.36 | -0.49 | -0.13 | ||
| 2036 | 16.60 | 12.75 | -3.85 | ---- | -0.38 | -0.49 | -0.11 | ||
| 2037 | 16.61 | 12.75 | -3.86 | ---- | -0.41 | -0.49 | -0.09 | ||
| 2038 | 16.60 | 12.75 | -3.84 | ---- | -0.43 | -0.49 | -0.07 | ||
| 2039 | 16.55 | 12.75 | -3.80 | ---- | -0.45 | -0.50 | -0.05 | ||
| 2040 | 16.50 | 12.75 | -3.75 | ---- | -0.46 | -0.50 | -0.03 | ||
| 2041 | 16.44 | 12.75 | -3.69 | ---- | -0.48 | -0.50 | -0.02 | ||
| 2042 | 16.37 | 12.74 | -3.62 | ---- | -0.49 | -0.50 | -0.00 | ||
| 2043 | 16.30 | 12.74 | -3.56 | ---- | -0.51 | -0.50 | 0.01 | ||
| 2044 | 16.24 | 12.74 | -3.50 | ---- | -0.52 | -0.50 | 0.02 | ||
| 2045 | 16.18 | 12.74 | -3.45 | ---- | -0.54 | -0.50 | 0.04 | ||
| 2046 | 16.13 | 12.73 | -3.40 | ---- | -0.55 | -0.50 | 0.05 | ||
| 2047 | 16.08 | 12.73 | -3.35 | ---- | -0.56 | -0.50 | 0.06 | ||
| 2048 | 16.04 | 12.73 | -3.31 | ---- | -0.57 | -0.50 | 0.07 | ||
| 2049 | 16.01 | 12.73 | -3.28 | ---- | -0.58 | -0.50 | 0.08 | ||
| 2050 | 15.98 | 12.73 | -3.25 | ---- | -0.59 | -0.50 | 0.09 | ||
| 2051 | 15.96 | 12.73 | -3.23 | ---- | -0.60 | -0.50 | 0.09 | ||
| 2052 | 15.95 | 12.73 | -3.23 | ---- | -0.60 | -0.50 | 0.10 | ||
| 2053 | 15.96 | 12.73 | -3.23 | ---- | -0.61 | -0.51 | 0.10 | ||
| 2054 | 15.97 | 12.73 | -3.24 | ---- | -0.61 | -0.51 | 0.11 | ||
| 2055 | 16.00 | 12.73 | -3.27 | ---- | -0.62 | -0.51 | 0.11 | ||
| 2056 | 16.03 | 12.73 | -3.30 | ---- | -0.62 | -0.51 | 0.12 | ||
| 2057 | 16.07 | 12.74 | -3.33 | ---- | -0.63 | -0.51 | 0.12 | ||
| 2058 | 16.11 | 12.74 | -3.37 | ---- | -0.63 | -0.51 | 0.12 | ||
| 2059 | 16.15 | 12.74 | -3.41 | ---- | -0.63 | -0.51 | 0.13 | ||
| 2060 | 16.19 | 12.75 | -3.45 | ---- | -0.64 | -0.51 | 0.13 | ||
| 2061 | 16.23 | 12.75 | -3.49 | ---- | -0.64 | -0.51 | 0.13 | ||
| 2062 | 16.28 | 12.75 | -3.53 | ---- | -0.64 | -0.51 | 0.14 | ||
| 2063 | 16.33 | 12.75 | -3.57 | ---- | -0.64 | -0.51 | 0.14 | ||
| 2064 | 16.37 | 12.76 | -3.61 | ---- | -0.65 | -0.51 | 0.14 | ||
| 2065 | 16.42 | 12.76 | -3.66 | ---- | -0.65 | -0.51 | 0.14 | ||
| 2066 | 16.47 | 12.76 | -3.70 | ---- | -0.65 | -0.51 | 0.14 | ||
| 2067 | 16.51 | 12.77 | -3.75 | ---- | -0.65 | -0.51 | 0.15 | ||
| 2068 | 16.56 | 12.77 | -3.79 | ---- | -0.66 | -0.51 | 0.15 | ||
| 2069 | 16.62 | 12.77 | -3.84 | ---- | -0.66 | -0.51 | 0.15 | ||
| 2070 | 16.67 | 12.78 | -3.89 | ---- | -0.66 | -0.51 | 0.15 | ||
| 2071 | 16.71 | 12.78 | -3.93 | ---- | -0.66 | -0.51 | 0.15 | ||
| 2072 | 16.75 | 12.78 | -3.97 | ---- | -0.66 | -0.51 | 0.16 | ||
| 2073 | 16.78 | 12.78 | -4.00 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2074 | 16.81 | 12.79 | -4.03 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2075 | 16.83 | 12.79 | -4.05 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2076 | 16.85 | 12.79 | -4.06 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2077 | 16.86 | 12.79 | -4.07 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2078 | 16.85 | 12.79 | -4.06 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2079 | 16.85 | 12.79 | -4.06 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2080 | 16.84 | 12.79 | -4.05 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2081 | 16.84 | 12.79 | -4.05 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2082 | 16.84 | 12.79 | -4.05 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2083 | 16.84 | 12.79 | -4.05 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2084 | 16.86 | 12.79 | -4.07 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2085 | 16.88 | 12.79 | -4.09 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2086 | 16.91 | 12.79 | -4.12 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2087 | 16.94 | 12.79 | -4.15 | ---- | -0.67 | -0.51 | 0.16 | ||
| 2088 | 16.98 | 12.80 | -4.19 | ---- | -0.68 | -0.51 | 0.17 | ||
| 2089 | 17.02 | 12.80 | -4.23 | ---- | -0.68 | -0.51 | 0.17 | ||
| 2090 | 17.07 | 12.80 | -4.27 | ---- | -0.68 | -0.51 | 0.17 | ||
| 2091 | 17.11 | 12.80 | -4.31 | ---- | -0.68 | -0.51 | 0.17 | ||
| 2092 | 17.16 | 12.81 | -4.35 | ---- | -0.68 | -0.51 | 0.17 | ||
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 | 16.20% | 13.36% | -2.85% | 2033 | -0.46% | -0.48% | -0.02% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
|||||||||
Based on Intermediate Assumptions of the 2017 Trustees Report.