Description of Proposed Provision:
E2.15: Apply OASDI payroll tax rate on earnings above $300,000 starting in 2019, and tax all earnings once the current-law taxable maximum exceeds $300,000. 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 2018 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 3 percent on this newly computed "AIME+".
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 | 14.09 | 0.39 | 273 | 0.00 | 1.14 | 1.14 | ||
2020 | 13.85 | 14.21 | 0.36 | 267 | -0.00 | 1.25 | 1.25 | ||
2021 | 14.01 | 14.29 | 0.27 | 261 | -0.00 | 1.30 | 1.30 | ||
2022 | 14.25 | 14.36 | 0.11 | 255 | -0.00 | 1.34 | 1.34 | ||
2023 | 14.54 | 14.42 | -0.12 | 248 | -0.00 | 1.37 | 1.38 | ||
2024 | 14.82 | 14.50 | -0.33 | 240 | -0.00 | 1.42 | 1.42 | ||
2025 | 15.10 | 14.56 | -0.54 | 231 | -0.00 | 1.46 | 1.46 | ||
2026 | 15.37 | 14.63 | -0.74 | 222 | 0.00 | 1.50 | 1.50 | ||
2027 | 15.62 | 14.69 | -0.92 | 213 | 0.00 | 1.54 | 1.54 | ||
2028 | 15.86 | 14.76 | -1.10 | 204 | 0.00 | 1.59 | 1.59 | ||
2029 | 16.07 | 14.82 | -1.25 | 195 | 0.00 | 1.64 | 1.64 | ||
2030 | 16.27 | 14.89 | -1.38 | 186 | 0.01 | 1.70 | 1.69 | ||
2031 | 16.45 | 14.96 | -1.50 | 177 | 0.01 | 1.75 | 1.74 | ||
2032 | 16.62 | 15.03 | -1.59 | 169 | 0.01 | 1.81 | 1.80 | ||
2033 | 16.75 | 15.10 | -1.65 | 160 | 0.01 | 1.87 | 1.86 | ||
2034 | 16.86 | 15.17 | -1.69 | 151 | 0.01 | 1.93 | 1.92 | ||
2035 | 16.94 | 15.24 | -1.70 | 142 | 0.01 | 2.00 | 1.98 | ||
2036 | 17.00 | 15.31 | -1.69 | 133 | 0.02 | 2.07 | 2.05 | ||
2037 | 17.04 | 15.39 | -1.65 | 125 | 0.02 | 2.14 | 2.12 | ||
2038 | 17.04 | 15.46 | -1.58 | 117 | 0.02 | 2.21 | 2.19 | ||
2039 | 17.02 | 15.54 | -1.48 | 109 | 0.02 | 2.29 | 2.27 | ||
2040 | 16.99 | 15.57 | -1.42 | 102 | 0.02 | 2.32 | 2.30 | ||
2041 | 16.94 | 15.57 | -1.37 | 95 | 0.03 | 2.32 | 2.30 | ||
2042 | 16.89 | 15.57 | -1.32 | 88 | 0.03 | 2.32 | 2.30 | ||
2043 | 16.84 | 15.57 | -1.27 | 82 | 0.03 | 2.33 | 2.30 | ||
2044 | 16.79 | 15.57 | -1.23 | 75 | 0.03 | 2.33 | 2.29 | ||
2045 | 16.75 | 15.57 | -1.19 | 69 | 0.04 | 2.33 | 2.29 | ||
2046 | 16.72 | 15.56 | -1.15 | 63 | 0.04 | 2.33 | 2.29 | ||
2047 | 16.69 | 15.56 | -1.12 | 57 | 0.04 | 2.33 | 2.29 | ||
2048 | 16.66 | 15.56 | -1.09 | 51 | 0.04 | 2.33 | 2.29 | ||
2049 | 16.63 | 15.56 | -1.07 | 45 | 0.05 | 2.33 | 2.29 | ||
2050 | 16.61 | 15.57 | -1.05 | 40 | 0.05 | 2.33 | 2.29 | ||
2051 | 16.61 | 15.57 | -1.04 | 34 | 0.05 | 2.33 | 2.28 | ||
2052 | 16.61 | 15.57 | -1.04 | 28 | 0.05 | 2.34 | 2.28 | ||
2053 | 16.62 | 15.57 | -1.05 | 22 | 0.05 | 2.34 | 2.28 | ||
2054 | 16.65 | 15.57 | -1.07 | 17 | 0.06 | 2.34 | 2.28 | ||
2055 | 16.68 | 15.58 | -1.10 | 10 | 0.06 | 2.34 | 2.28 | ||
2056 | 16.72 | 15.58 | -1.14 | 4 | 0.06 | 2.34 | 2.28 | ||
2057 | 16.76 | 15.58 | -1.18 | ---- | 0.06 | 2.34 | 2.28 | ||
2058 | 16.81 | 15.59 | -1.22 | ---- | 0.07 | 2.34 | 2.28 | ||
2059 | 16.85 | 15.59 | -1.26 | ---- | 0.07 | 2.34 | 2.27 | ||
2060 | 16.90 | 15.60 | -1.30 | ---- | 0.07 | 2.35 | 2.27 | ||
2061 | 16.95 | 15.60 | -1.35 | ---- | 0.07 | 2.35 | 2.27 | ||
2062 | 17.00 | 15.61 | -1.39 | ---- | 0.08 | 2.35 | 2.27 | ||
2063 | 17.05 | 15.61 | -1.44 | ---- | 0.08 | 2.35 | 2.27 | ||
2064 | 17.10 | 15.62 | -1.48 | ---- | 0.08 | 2.35 | 2.27 | ||
2065 | 17.15 | 15.62 | -1.53 | ---- | 0.08 | 2.35 | 2.27 | ||
2066 | 17.20 | 15.62 | -1.58 | ---- | 0.08 | 2.35 | 2.27 | ||
2067 | 17.25 | 15.63 | -1.62 | ---- | 0.09 | 2.35 | 2.27 | ||
2068 | 17.31 | 15.63 | -1.67 | ---- | 0.09 | 2.36 | 2.27 | ||
2069 | 17.36 | 15.64 | -1.72 | ---- | 0.09 | 2.36 | 2.27 | ||
2070 | 17.42 | 15.64 | -1.77 | ---- | 0.09 | 2.36 | 2.27 | ||
2071 | 17.46 | 15.65 | -1.82 | ---- | 0.09 | 2.36 | 2.27 | ||
2072 | 17.51 | 15.65 | -1.85 | ---- | 0.09 | 2.36 | 2.27 | ||
2073 | 17.54 | 15.66 | -1.89 | ---- | 0.09 | 2.36 | 2.27 | ||
2074 | 17.57 | 15.66 | -1.92 | ---- | 0.10 | 2.36 | 2.27 | ||
2075 | 17.60 | 15.66 | -1.94 | ---- | 0.10 | 2.37 | 2.27 | ||
2076 | 17.62 | 15.66 | -1.95 | ---- | 0.10 | 2.37 | 2.27 | ||
2077 | 17.62 | 15.67 | -1.96 | ---- | 0.10 | 2.37 | 2.27 | ||
2078 | 17.62 | 15.67 | -1.95 | ---- | 0.10 | 2.37 | 2.27 | ||
2079 | 17.62 | 15.67 | -1.95 | ---- | 0.10 | 2.37 | 2.27 | ||
2080 | 17.61 | 15.67 | -1.94 | ---- | 0.10 | 2.37 | 2.27 | ||
2081 | 17.61 | 15.67 | -1.94 | ---- | 0.10 | 2.37 | 2.27 | ||
2082 | 17.61 | 15.67 | -1.93 | ---- | 0.10 | 2.38 | 2.27 | ||
2083 | 17.61 | 15.67 | -1.94 | ---- | 0.10 | 2.38 | 2.27 | ||
2084 | 17.63 | 15.68 | -1.95 | ---- | 0.10 | 2.38 | 2.28 | ||
2085 | 17.65 | 15.68 | -1.98 | ---- | 0.10 | 2.38 | 2.28 | ||
2086 | 17.68 | 15.68 | -2.00 | ---- | 0.10 | 2.38 | 2.28 | ||
2087 | 17.72 | 15.69 | -2.04 | ---- | 0.10 | 2.38 | 2.28 | ||
2088 | 17.76 | 15.69 | -2.07 | ---- | 0.11 | 2.38 | 2.28 | ||
2089 | 17.81 | 15.69 | -2.11 | ---- | 0.11 | 2.38 | 2.28 | ||
2090 | 17.86 | 15.70 | -2.16 | ---- | 0.11 | 2.39 | 2.28 | ||
2091 | 17.90 | 15.70 | -2.20 | ---- | 0.11 | 2.39 | 2.28 | ||
2092 | 17.95 | 15.71 | -2.25 | ---- | 0.11 | 2.39 | 2.28 |
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 | 16.71% | 15.89% | -0.83% | 2056 | 0.05% | 2.05% | 2.00% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2017 Trustees Report.