Description of Proposed Provision:
E3.13: Beginning in 2026, apply 2 percent payroll tax rate on earnings over the wage-indexed equivalent of $400,000 in 2017 (about $558,900 in 2026), with the threshold wage-indexed after 2026. 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 |
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 | 12.92 | -1.35 | 239 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.44 | 12.95 | -1.49 | 223 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.62 | 12.97 | -1.66 | 206 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.80 | 12.99 | -1.81 | 188 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.98 | 13.01 | -1.98 | 171 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.16 | 13.29 | -1.87 | 154 | 0.00 | 0.15 | 0.15 | ||
| 2027 | 15.36 | 13.32 | -2.05 | 138 | -0.00 | 0.16 | 0.16 | ||
| 2028 | 15.58 | 13.33 | -2.25 | 122 | -0.00 | 0.16 | 0.16 | ||
| 2029 | 15.79 | 13.35 | -2.44 | 107 | -0.00 | 0.16 | 0.16 | ||
| 2030 | 15.98 | 13.37 | -2.62 | 90 | -0.00 | 0.16 | 0.16 | ||
| 2031 | 16.16 | 13.38 | -2.78 | 74 | -0.00 | 0.16 | 0.16 | ||
| 2032 | 16.32 | 13.39 | -2.93 | 57 | -0.00 | 0.16 | 0.16 | ||
| 2033 | 16.45 | 13.40 | -3.05 | 40 | -0.00 | 0.16 | 0.16 | ||
| 2034 | 16.56 | 13.41 | -3.15 | 22 | -0.00 | 0.16 | 0.16 | ||
| 2035 | 16.65 | 13.42 | -3.23 | 4 | -0.00 | 0.16 | 0.16 | ||
| 2036 | 16.72 | 13.42 | -3.30 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2037 | 16.78 | 13.43 | -3.35 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2038 | 16.82 | 13.43 | -3.39 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2039 | 16.83 | 13.44 | -3.40 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2040 | 16.83 | 13.44 | -3.39 | ---- | -0.00 | 0.16 | 0.16 | ||
| 2041 | 16.81 | 13.44 | -3.37 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2042 | 16.77 | 13.44 | -3.34 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2043 | 16.73 | 13.43 | -3.30 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2044 | 16.69 | 13.43 | -3.26 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2045 | 16.66 | 13.43 | -3.23 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2046 | 16.63 | 13.43 | -3.19 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2047 | 16.60 | 13.43 | -3.17 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2048 | 16.57 | 13.43 | -3.14 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2049 | 16.55 | 13.43 | -3.12 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2050 | 16.54 | 13.43 | -3.11 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2051 | 16.53 | 13.43 | -3.10 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2052 | 16.53 | 13.43 | -3.10 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2053 | 16.54 | 13.44 | -3.11 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2054 | 16.56 | 13.44 | -3.12 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2055 | 16.59 | 13.44 | -3.15 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2056 | 16.62 | 13.44 | -3.18 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2057 | 16.66 | 13.45 | -3.21 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2058 | 16.71 | 13.45 | -3.26 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2059 | 16.76 | 13.46 | -3.30 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2060 | 16.80 | 13.46 | -3.34 | ---- | -0.00 | 0.16 | 0.17 | ||
| 2061 | 16.85 | 13.46 | -3.39 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2062 | 16.91 | 13.47 | -3.44 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2063 | 16.96 | 13.47 | -3.49 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2064 | 17.01 | 13.48 | -3.53 | ---- | -0.00 | 0.17 | 0.17 | ||
| 2065 | 17.06 | 13.48 | -3.58 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2066 | 17.12 | 13.48 | -3.64 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2067 | 17.18 | 13.49 | -3.69 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2068 | 17.24 | 13.49 | -3.74 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2069 | 17.30 | 13.50 | -3.80 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2070 | 17.36 | 13.50 | -3.86 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2071 | 17.41 | 13.51 | -3.91 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2072 | 17.46 | 13.51 | -3.95 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2073 | 17.51 | 13.51 | -4.00 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2074 | 17.55 | 13.52 | -4.03 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2075 | 17.58 | 13.52 | -4.06 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2076 | 17.60 | 13.52 | -4.08 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2077 | 17.62 | 13.52 | -4.10 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2078 | 17.62 | 13.52 | -4.10 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2079 | 17.61 | 13.52 | -4.09 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2080 | 17.60 | 13.52 | -4.08 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2081 | 17.58 | 13.52 | -4.06 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2082 | 17.57 | 13.52 | -4.04 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2083 | 17.55 | 13.52 | -4.03 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2084 | 17.53 | 13.52 | -4.01 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2085 | 17.52 | 13.52 | -4.01 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2086 | 17.52 | 13.52 | -4.00 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2087 | 17.53 | 13.52 | -4.01 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2088 | 17.54 | 13.52 | -4.02 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2089 | 17.56 | 13.52 | -4.04 | ---- | -0.01 | 0.17 | 0.17 | ||
| 2090 | 17.59 | 13.52 | -4.07 | ---- | -0.01 | 0.17 | 0.18 | ||
| 2091 | 17.63 | 13.53 | -4.10 | ---- | -0.01 | 0.17 | 0.18 | ||
| 2092 | 17.67 | 13.53 | -4.14 | ---- | -0.01 | 0.17 | 0.18 | ||
| 2093 | 17.72 | 13.53 | -4.19 | ---- | -0.01 | 0.17 | 0.18 | ||
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% | 13.99% | -2.70% | 2035 | -0.00% | 0.14% | 0.15% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
|||||||||
Based on Intermediate Assumptions of the 2018 Trustees Report.