Description of Proposed Provision:
E3.19: Increase the taxable maximum such that 90 percent of earnings would be subject to the payroll tax (phased in linearly from 2020-2025). Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from additional annual earnings taxed over the current-law taxable maximum; and (2) a formula factor of 2.5 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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1213.12-1.01
256
0.000.220.22
202114.2713.36-0.92
241
-0.000.440.44
202214.4413.57-0.87
227
-0.000.620.62
202314.6213.74-0.88
214
-0.000.780.78
202414.8013.91-0.89
201
-0.000.920.92
202514.9814.04-0.94
190
-0.001.041.04
202615.1614.17-0.99
179
-0.001.031.03
202715.3614.18-1.19
168
-0.001.021.02
202815.5814.20-1.39
157
-0.001.021.03
202915.7914.21-1.58
146
-0.001.031.03
203015.9814.23-1.75
135
-0.001.031.03
203116.1614.24-1.92
123
0.001.031.03
203216.3214.26-2.06
111
0.001.031.03
203316.4514.27-2.19
99
0.001.031.03
203416.5714.28-2.29
87
0.001.031.03
203516.6514.28-2.37
74
0.001.031.03
203616.7314.29-2.44
61
0.001.031.03
203716.7914.30-2.49
47
0.001.031.03
203816.8314.30-2.53
33
0.001.031.03
203916.8414.30-2.53
19
0.011.031.03
204016.8314.31-2.53
4
0.011.031.03
204116.8214.31-2.51
----
0.011.031.03
204216.7814.31-2.48
----
0.011.031.03
204316.7414.31-2.44
----
0.011.041.03
204416.7014.31-2.40
----
0.011.041.03
204516.6714.30-2.36
----
0.011.041.03
204616.6414.30-2.33
----
0.011.041.03
204716.6114.30-2.31
----
0.011.041.03
204816.5914.30-2.28
----
0.011.041.03
204916.5714.31-2.26
----
0.011.041.03
205016.5514.31-2.25
----
0.011.041.03
205116.5514.31-2.24
----
0.011.041.03
205216.5514.31-2.24
----
0.011.041.03
205316.5614.31-2.25
----
0.011.041.03
205416.5814.31-2.26
----
0.011.041.02
205516.6014.32-2.29
----
0.021.041.02
205616.6414.32-2.32
----
0.021.041.03
205716.6814.32-2.36
----
0.021.041.02
205816.7314.33-2.40
----
0.021.041.02
205916.7814.33-2.44
----
0.021.041.02
206016.8314.34-2.49
----
0.021.041.02
206116.8814.34-2.54
----
0.021.041.02
206216.9314.35-2.58
----
0.021.041.02
206316.9814.35-2.63
----
0.021.051.02
206417.0414.36-2.68
----
0.021.051.02
206517.0914.36-2.73
----
0.021.051.02
206617.1514.37-2.78
----
0.021.051.03
206717.2114.37-2.84
----
0.021.051.03
206817.2714.38-2.89
----
0.021.051.03
206917.3314.38-2.95
----
0.021.051.03
207017.3914.39-3.00
----
0.031.051.03
207117.4514.39-3.05
----
0.031.051.03
207217.5014.40-3.10
----
0.031.051.03
207317.5414.40-3.14
----
0.031.051.03
207417.5814.40-3.18
----
0.031.051.03
207517.6114.41-3.21
----
0.031.061.03
207617.6414.41-3.23
----
0.031.061.03
207717.6514.41-3.24
----
0.031.061.03
207817.6514.41-3.24
----
0.031.061.03
207917.6514.41-3.23
----
0.031.061.03
208017.6314.41-3.22
----
0.031.061.03
208117.6214.41-3.20
----
0.031.061.03
208217.6014.41-3.19
----
0.031.061.03
208317.5814.41-3.17
----
0.031.061.03
208417.5714.41-3.16
----
0.031.061.03
208517.5614.41-3.15
----
0.031.061.03
208617.5614.41-3.14
----
0.031.061.03
208717.5614.41-3.15
----
0.031.061.03
208817.5814.42-3.16
----
0.031.061.03
208917.6014.42-3.18
----
0.031.061.03
209017.6314.42-3.21
----
0.031.071.04
209117.6714.42-3.24
----
0.031.071.04
209217.7114.43-3.28
----
0.031.071.04
209317.7614.43-3.32
----
0.031.071.04


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 16.70% 14.82% -1.88%
2040
0.01% 0.98% 0.96%

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