Description of Proposed Provision:
E3.15: Increase the taxable maximum such that 90 percent of earnings are subject to the payroll tax (phased in 2019-2028). In addition, apply a tax rate of 6.2 percent for earnings above the revised taxable maximum (phased in from 2019-2028). Provide benefit credit for earnings taxed up to the revised 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
201813.8112.64-1.17
288
0.000.000.00
201913.9513.11-0.84
272
0.000.240.24
202014.1213.37-0.75
258
-0.000.480.48
202114.2713.61-0.66
244
-0.000.690.69
202214.4413.82-0.61
232
-0.000.880.88
202314.6214.01-0.61
220
-0.001.051.05
202414.8014.19-0.61
209
0.001.201.20
202514.9814.34-0.64
199
0.001.331.33
202615.1614.58-0.58
190
0.001.451.45
202715.3714.71-0.66
181
0.011.561.55
202815.5914.83-0.76
173
0.011.661.65
202915.8014.86-0.95
166
0.011.671.66
203016.0014.87-1.13
158
0.021.671.65
203116.1814.89-1.29
150
0.021.671.65
203216.3414.90-1.44
142
0.031.671.65
203316.4814.91-1.57
134
0.031.671.64
203416.6014.92-1.68
125
0.041.671.64
203516.6914.93-1.76
116
0.041.681.63
203616.7714.94-1.83
107
0.051.681.63
203716.8414.94-1.90
97
0.061.681.62
203816.8814.95-1.93
87
0.061.681.62
203916.9014.95-1.95
77
0.071.681.61
204016.9014.96-1.95
66
0.081.681.61
204116.8914.96-1.93
56
0.081.691.60
204216.8714.96-1.91
45
0.091.691.60
204316.8314.96-1.87
35
0.101.691.59
204416.8014.96-1.84
24
0.111.691.58
204516.7714.96-1.81
14
0.111.691.58
204616.7514.96-1.79
3
0.121.691.57
204716.7314.96-1.77
----
0.131.701.57
204816.7114.96-1.75
----
0.141.701.56
204916.7014.97-1.74
----
0.151.701.55
205016.7014.97-1.73
----
0.151.701.55
205116.7014.97-1.73
----
0.161.701.54
205216.7114.97-1.73
----
0.171.701.53
205316.7214.98-1.75
----
0.181.711.52
205416.7514.98-1.77
----
0.191.711.52
205516.7914.99-1.80
----
0.201.711.51
205616.8314.99-1.84
----
0.211.711.50
205716.8815.00-1.89
----
0.221.711.50
205816.9415.00-1.94
----
0.231.721.49
205917.0015.01-1.99
----
0.241.721.48
206017.0515.01-2.04
----
0.251.721.47
206117.1115.02-2.09
----
0.251.721.47
206217.1715.03-2.15
----
0.261.721.46
206317.2415.03-2.20
----
0.271.731.45
206417.3015.04-2.26
----
0.281.731.45
206517.3615.04-2.31
----
0.291.731.44
206617.4215.05-2.37
----
0.301.731.43
206717.4915.06-2.43
----
0.301.731.43
206817.5515.06-2.49
----
0.311.741.42
206917.6215.07-2.55
----
0.321.741.42
207017.6915.07-2.62
----
0.331.741.41
207117.7515.08-2.67
----
0.331.741.41
207217.8115.09-2.72
----
0.341.741.40
207317.8615.09-2.77
----
0.341.741.40
207417.9015.10-2.81
----
0.351.751.40
207517.9415.10-2.84
----
0.351.751.39
207617.9715.10-2.86
----
0.361.751.39
207717.9915.11-2.88
----
0.361.751.39
207817.9915.11-2.88
----
0.361.751.39
207917.9915.11-2.88
----
0.371.751.39
208017.9715.11-2.86
----
0.371.761.39
208117.9615.11-2.85
----
0.371.761.39
208217.9415.11-2.83
----
0.371.761.39
208317.9315.11-2.82
----
0.371.761.39
208417.9115.11-2.80
----
0.371.761.39
208517.9115.11-2.79
----
0.381.761.39
208617.9015.11-2.79
----
0.381.761.39
208717.9115.12-2.79
----
0.381.771.39
208817.9315.12-2.81
----
0.381.771.39
208917.9515.12-2.83
----
0.381.771.39
209017.9815.12-2.86
----
0.381.771.39
209118.0215.13-2.89
----
0.381.771.39
209218.0615.13-2.93
----
0.391.771.39
209318.1115.14-2.98
----
0.391.771.39


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 16.86% 15.43% -1.43%
2046
0.17% 1.59% 1.41%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.