Description of Proposed Provision:
E2.8: Apply a 2 percent payroll tax on earnings above the current-law taxable maximum for years 2021-2068, and a 3 percent rate for years 2069 and later. Do not provide benefit credit for earnings above the current-law taxable maximum.
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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 14.12 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.27 | 13.30 | -0.97 | 239 | 0.00 | 0.38 | 0.38 | ||
| 2022 | 14.44 | 13.35 | -1.08 | 225 | -0.00 | 0.41 | 0.41 | ||
| 2023 | 14.62 | 13.37 | -1.25 | 211 | -0.00 | 0.41 | 0.41 | ||
| 2024 | 14.80 | 13.40 | -1.40 | 196 | -0.00 | 0.41 | 0.41 | ||
| 2025 | 14.98 | 13.41 | -1.57 | 181 | -0.00 | 0.40 | 0.41 | ||
| 2026 | 15.16 | 13.54 | -1.62 | 166 | -0.00 | 0.40 | 0.40 | ||
| 2027 | 15.36 | 13.55 | -1.81 | 152 | -0.00 | 0.40 | 0.40 | ||
| 2028 | 15.58 | 13.57 | -2.01 | 137 | -0.00 | 0.40 | 0.40 | ||
| 2029 | 15.79 | 13.59 | -2.20 | 123 | -0.00 | 0.40 | 0.40 | ||
| 2030 | 15.98 | 13.60 | -2.38 | 108 | -0.00 | 0.40 | 0.40 | ||
| 2031 | 16.16 | 13.62 | -2.54 | 93 | -0.00 | 0.40 | 0.40 | ||
| 2032 | 16.31 | 13.63 | -2.69 | 77 | -0.00 | 0.40 | 0.40 | ||
| 2033 | 16.45 | 13.64 | -2.81 | 61 | -0.00 | 0.40 | 0.40 | ||
| 2034 | 16.56 | 13.65 | -2.91 | 45 | -0.00 | 0.40 | 0.40 | ||
| 2035 | 16.65 | 13.65 | -2.99 | 28 | -0.00 | 0.40 | 0.40 | ||
| 2036 | 16.72 | 13.66 | -3.06 | 11 | -0.00 | 0.40 | 0.40 | ||
| 2037 | 16.78 | 13.67 | -3.11 | ---- | -0.00 | 0.40 | 0.40 | ||
| 2038 | 16.82 | 13.67 | -3.15 | ---- | -0.00 | 0.40 | 0.40 | ||
| 2039 | 16.83 | 13.67 | -3.15 | ---- | -0.00 | 0.40 | 0.41 | ||
| 2040 | 16.82 | 13.67 | -3.15 | ---- | -0.00 | 0.40 | 0.41 | ||
| 2041 | 16.81 | 13.67 | -3.13 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2042 | 16.77 | 13.67 | -3.10 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2043 | 16.73 | 13.67 | -3.06 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2044 | 16.69 | 13.67 | -3.02 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2045 | 16.65 | 13.67 | -2.98 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2046 | 16.62 | 13.67 | -2.95 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2047 | 16.59 | 13.67 | -2.92 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2048 | 16.57 | 13.67 | -2.90 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2049 | 16.55 | 13.67 | -2.88 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2050 | 16.53 | 13.67 | -2.86 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2051 | 16.52 | 13.67 | -2.85 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2052 | 16.52 | 13.67 | -2.85 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2053 | 16.53 | 13.67 | -2.86 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2054 | 16.55 | 13.68 | -2.88 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2055 | 16.58 | 13.68 | -2.90 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2056 | 16.61 | 13.68 | -2.93 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2057 | 16.65 | 13.69 | -2.97 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2058 | 16.70 | 13.69 | -3.01 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2059 | 16.75 | 13.69 | -3.05 | ---- | -0.01 | 0.40 | 0.41 | ||
| 2060 | 16.80 | 13.70 | -3.10 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2061 | 16.85 | 13.70 | -3.14 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2062 | 16.90 | 13.71 | -3.19 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2063 | 16.95 | 13.71 | -3.24 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2064 | 17.00 | 13.71 | -3.29 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2065 | 17.05 | 13.72 | -3.34 | ---- | -0.01 | 0.40 | 0.42 | ||
| 2066 | 17.11 | 13.72 | -3.39 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2067 | 17.17 | 13.73 | -3.44 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2068 | 17.23 | 13.73 | -3.50 | ---- | -0.02 | 0.40 | 0.42 | ||
| 2069 | 17.29 | 13.92 | -3.37 | ---- | -0.02 | 0.59 | 0.61 | ||
| 2070 | 17.35 | 13.94 | -3.41 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2071 | 17.40 | 13.94 | -3.46 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2072 | 17.45 | 13.95 | -3.51 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2073 | 17.50 | 13.95 | -3.55 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2074 | 17.54 | 13.95 | -3.58 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2075 | 17.57 | 13.96 | -3.61 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2076 | 17.59 | 13.96 | -3.63 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2077 | 17.61 | 13.96 | -3.65 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2078 | 17.61 | 13.96 | -3.65 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2079 | 17.60 | 13.96 | -3.64 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2080 | 17.59 | 13.96 | -3.63 | ---- | -0.02 | 0.60 | 0.62 | ||
| 2081 | 17.57 | 13.96 | -3.61 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2082 | 17.55 | 13.96 | -3.59 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2083 | 17.54 | 13.96 | -3.58 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2084 | 17.52 | 13.96 | -3.56 | ---- | -0.02 | 0.61 | 0.62 | ||
| 2085 | 17.51 | 13.96 | -3.55 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2086 | 17.51 | 13.96 | -3.55 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2087 | 17.51 | 13.96 | -3.56 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2088 | 17.53 | 13.96 | -3.57 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2089 | 17.55 | 13.96 | -3.59 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2090 | 17.58 | 13.96 | -3.62 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2091 | 17.62 | 13.97 | -3.65 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2092 | 17.66 | 13.97 | -3.69 | ---- | -0.02 | 0.61 | 0.63 | ||
| 2093 | 17.70 | 13.97 | -3.73 | ---- | -0.02 | 0.61 | 0.63 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 16.68% | 14.28% | -2.40% | 2036 | -0.01% | 0.43% | 0.44% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.