Long Range Solvency Provisions

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2019, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.

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	Trust fund ratio as of January 1	Cost rate	Income rate	Annual balance
2018	13.81	12.64	-1.17	288	0.00	0.00	0.00
2019	13.95	14.17	0.21	272	0.00	1.29	1.29
2020	14.12	14.32	0.20	265	-0.00	1.43	1.43
2021	14.27	14.39	0.12	258	-0.00	1.47	1.48
2022	14.43	14.47	0.03	250	-0.00	1.52	1.52
2023	14.62	14.53	-0.08	242	-0.00	1.57	1.57
2024	14.80	14.61	-0.19	234	-0.00	1.62	1.62
2025	14.98	14.68	-0.30	226	-0.00	1.67	1.67
2026	15.15	14.85	-0.30	218	-0.01	1.72	1.72
2027	15.36	14.92	-0.44	211	-0.01	1.77	1.77
2028	15.58	15.00	-0.58	204	-0.01	1.83	1.84
2029	15.78	15.08	-0.70	197	-0.01	1.89	1.90
2030	15.97	15.16	-0.82	190	-0.01	1.96	1.97
2031	16.15	15.24	-0.91	184	-0.01	2.02	2.03
2032	16.30	15.32	-0.98	178	-0.01	2.09	2.11
2033	16.44	15.40	-1.03	173	-0.01	2.17	2.18
2034	16.55	15.49	-1.06	168	-0.01	2.24	2.26
2035	16.63	15.56	-1.07	163	-0.02	2.31	2.32
2036	16.70	15.57	-1.13	158	-0.02	2.31	2.33
2037	16.76	15.58	-1.19	152	-0.02	2.31	2.33
2038	16.80	15.58	-1.22	147	-0.02	2.31	2.33
2039	16.81	15.59	-1.22	141	-0.02	2.31	2.34
2040	16.80	15.59	-1.22	136	-0.02	2.31	2.34
2041	16.78	15.59	-1.20	131	-0.03	2.31	2.34
2042	16.75	15.59	-1.16	125	-0.03	2.32	2.34
2043	16.71	15.59	-1.12	120	-0.03	2.32	2.35
2044	16.66	15.59	-1.08	115	-0.03	2.32	2.35
2045	16.63	15.59	-1.04	110	-0.03	2.32	2.35
2046	16.59	15.59	-1.01	106	-0.04	2.32	2.35
2047	16.56	15.59	-0.98	101	-0.04	2.32	2.36
2048	16.54	15.59	-0.95	96	-0.04	2.32	2.36
2049	16.51	15.59	-0.93	92	-0.04	2.32	2.36
2050	16.50	15.59	-0.91	87	-0.04	2.32	2.36
2051	16.49	15.59	-0.90	83	-0.05	2.32	2.37
2052	16.49	15.59	-0.90	79	-0.05	2.32	2.37
2053	16.49	15.59	-0.90	74	-0.05	2.32	2.37
2054	16.51	15.60	-0.91	70	-0.05	2.32	2.38
2055	16.53	15.60	-0.93	65	-0.06	2.32	2.38
2056	16.57	15.60	-0.96	60	-0.06	2.32	2.38
2057	16.60	15.61	-1.00	55	-0.06	2.32	2.38
2058	16.65	15.61	-1.04	50	-0.06	2.32	2.39
2059	16.69	15.62	-1.08	44	-0.07	2.33	2.39
2060	16.74	15.62	-1.12	38	-0.07	2.33	2.39
2061	16.79	15.63	-1.16	32	-0.07	2.33	2.40
2062	16.84	15.63	-1.21	25	-0.07	2.33	2.40
2063	16.89	15.63	-1.25	19	-0.07	2.33	2.40
2064	16.94	15.64	-1.30	12	-0.08	2.33	2.41
2065	16.99	15.64	-1.35	4	-0.08	2.33	2.41
2066	17.04	15.65	-1.40	----	-0.08	2.33	2.41
2067	17.10	15.65	-1.45	----	-0.08	2.33	2.41
2068	17.16	15.66	-1.50	----	-0.08	2.33	2.42
2069	17.22	15.66	-1.55	----	-0.09	2.33	2.42
2070	17.28	15.67	-1.61	----	-0.09	2.33	2.42
2071	17.33	15.67	-1.66	----	-0.09	2.34	2.42
2072	17.38	15.68	-1.70	----	-0.09	2.34	2.43
2073	17.42	15.68	-1.74	----	-0.09	2.34	2.43
2074	17.46	15.69	-1.77	----	-0.09	2.34	2.43
2075	17.49	15.69	-1.80	----	-0.09	2.34	2.43
2076	17.52	15.69	-1.82	----	-0.09	2.34	2.43
2077	17.53	15.70	-1.83	----	-0.09	2.34	2.44
2078	17.53	15.70	-1.83	----	-0.10	2.34	2.44
2079	17.52	15.70	-1.82	----	-0.10	2.34	2.44
2080	17.51	15.70	-1.81	----	-0.10	2.35	2.44
2081	17.49	15.70	-1.79	----	-0.10	2.35	2.44
2082	17.48	15.70	-1.77	----	-0.10	2.35	2.44
2083	17.46	15.70	-1.76	----	-0.10	2.35	2.45
2084	17.44	15.70	-1.74	----	-0.10	2.35	2.45
2085	17.43	15.70	-1.73	----	-0.10	2.35	2.45
2086	17.43	15.70	-1.73	----	-0.10	2.35	2.45
2087	17.44	15.71	-1.73	----	-0.10	2.35	2.45
2088	17.45	15.71	-1.74	----	-0.10	2.36	2.45
2089	17.47	15.71	-1.76	----	-0.10	2.36	2.45
2090	17.50	15.71	-1.79	----	-0.10	2.36	2.45
2091	17.54	15.72	-1.82	----	-0.10	2.36	2.46
2092	17.58	15.72	-1.86	----	-0.10	2.36	2.46
2093	17.63	15.73	-1.90	----	-0.10	2.36	2.46

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	16.64%	15.99%	-0.64%	2065	-0.05%	2.15%	2.20%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2018 Trustees Report.

Detailed Single Year Tables

Description of Proposed Provision: E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2019, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2019, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.