Proposed Provision: F5. Tax Reform for Business: Establish a value added tax (VAT) of 3.0 percent for 2020 and 6.5 percent for 2021 and later. Assume about 75% of personal consumption expenditures is subject to the VAT.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2018288288
2019272272
2020256256
2021239236
2022223217
2023206197
2024188177
2025171157
2026154138
2027137119
2028120100
202910482
20308663
20316943
20325124
2033334
203414-17
2035-5-38
2036-25-60
2037-46-82
2038-67-105
2039-88-128
2040-110-151
2041-132-175
2042-154-198
2043-176-222
2044-199-246
2045-221-270
2046-244-294
2047-267-318
2048-289-342
2049-312-366
2050-335-390
2051-358-414
2052-381-438
2053-403-462
2054-426-485
2055-450-509
2056-473-533
2057-496-557
2058-520-582
2059-544-606
2060-569-632
2061-594-657
2062-619-683
2063-645-709
2064-671-736
2065-698-764
2066-725-791
2067-752-819
2068-780-848
2069-808-876
2070-837-906
2071-866-935
2072-896-966
2073-927-997
2074-958-1029
2075-990-1062
2076-1023-1095
2077-1057-1130
2078-1092-1166
2079-1128-1203
2080-1165-1240
2081-1202-1278
2082-1240-1317
2083-1278-1356
2084-1316-1395
2085-1354-1434
2086-1392-1473
2087-1430-1512
2088-1468-1550
2089-1505-1589
2090-1543-1627
2091-1580-1665
2092-1618-1703
2093-1655-1742
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