Long Range Solvency Provisions

Description of Proposed Provision:
E2.5: Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2022, 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
2021	14.11	12.31	-1.81	253	0.00	0.00	0.00
2022	14.30	14.48	0.17	231	0.00	1.55	1.55
2023	14.43	14.57	0.14	224	-0.00	1.65	1.65
2024	14.63	14.62	-0.01	217	-0.00	1.68	1.68
2025	14.85	14.67	-0.18	209	-0.01	1.71	1.72
2026	15.09	14.82	-0.27	200	-0.01	1.74	1.75
2027	15.34	14.88	-0.47	192	-0.02	1.78	1.80
2028	15.59	14.95	-0.64	183	-0.03	1.82	1.85
2029	15.83	15.03	-0.80	174	-0.04	1.86	1.90
2030	16.05	15.09	-0.96	165	-0.05	1.90	1.96
2031	16.22	15.17	-1.05	156	-0.07	1.96	2.03
2032	16.35	15.24	-1.11	148	-0.08	2.02	2.11
2033	16.46	15.32	-1.14	140	-0.10	2.09	2.19
2034	16.54	15.39	-1.15	132	-0.12	2.16	2.27
2035	16.61	15.47	-1.14	126	-0.13	2.23	2.36
2036	16.66	15.55	-1.11	120	-0.15	2.30	2.44
2037	16.70	15.56	-1.14	114	-0.16	2.31	2.47
2038	16.74	15.57	-1.17	108	-0.17	2.31	2.48
2039	16.76	15.58	-1.19	102	-0.19	2.31	2.50
2040	16.78	15.58	-1.20	96	-0.20	2.31	2.51
2041	16.80	15.58	-1.22	90	-0.22	2.31	2.53
2042	16.81	15.58	-1.22	84	-0.23	2.31	2.54
2043	16.80	15.59	-1.21	77	-0.24	2.31	2.55
2044	16.79	15.59	-1.20	71	-0.25	2.31	2.56
2045	16.78	15.59	-1.19	65	-0.27	2.31	2.58
2046	16.78	15.59	-1.19	58	-0.28	2.31	2.59
2047	16.79	15.60	-1.19	52	-0.29	2.31	2.60
2048	16.80	15.60	-1.20	46	-0.30	2.31	2.61
2049	16.81	15.60	-1.21	39	-0.31	2.31	2.62
2050	16.82	15.60	-1.22	32	-0.32	2.31	2.63
2051	16.84	15.61	-1.23	26	-0.32	2.31	2.64
2052	16.86	15.61	-1.25	19	-0.33	2.31	2.65
2053	16.88	15.61	-1.27	12	-0.34	2.31	2.65
2054	16.91	15.62	-1.29	4	-0.34	2.32	2.66
2055	16.94	15.62	-1.32	----	-0.35	2.32	2.67
2056	16.98	15.63	-1.35	----	-0.36	2.32	2.67
2057	17.02	15.63	-1.39	----	-0.36	2.32	2.68
2058	17.07	15.64	-1.44	----	-0.36	2.32	2.68
2059	17.12	15.64	-1.48	----	-0.37	2.32	2.69
2060	17.18	15.65	-1.53	----	-0.37	2.32	2.69
2061	17.23	15.65	-1.57	----	-0.37	2.32	2.69
2062	17.28	15.66	-1.62	----	-0.38	2.32	2.70
2063	17.32	15.66	-1.66	----	-0.38	2.32	2.70
2064	17.37	15.67	-1.70	----	-0.38	2.32	2.70
2065	17.42	15.67	-1.75	----	-0.38	2.32	2.71
2066	17.47	15.68	-1.79	----	-0.38	2.32	2.71
2067	17.52	15.68	-1.84	----	-0.39	2.33	2.71
2068	17.57	15.69	-1.88	----	-0.39	2.33	2.71
2069	17.62	15.69	-1.93	----	-0.39	2.33	2.72
2070	17.68	15.70	-1.98	----	-0.39	2.33	2.72
2071	17.73	15.70	-2.03	----	-0.39	2.33	2.72
2072	17.78	15.71	-2.07	----	-0.39	2.33	2.72
2073	17.83	15.71	-2.12	----	-0.39	2.33	2.72
2074	17.88	15.72	-2.16	----	-0.39	2.33	2.73
2075	17.92	15.72	-2.20	----	-0.39	2.33	2.73
2076	17.95	15.73	-2.23	----	-0.39	2.33	2.73
2077	17.97	15.73	-2.24	----	-0.39	2.34	2.73
2078	17.98	15.73	-2.25	----	-0.39	2.34	2.73
2079	17.98	15.73	-2.24	----	-0.39	2.34	2.73
2080	17.96	15.73	-2.23	----	-0.39	2.34	2.73
2081	17.94	15.73	-2.20	----	-0.39	2.34	2.73
2082	17.90	15.73	-2.17	----	-0.39	2.34	2.73
2083	17.86	15.73	-2.13	----	-0.39	2.34	2.73
2084	17.81	15.73	-2.08	----	-0.39	2.34	2.73
2085	17.75	15.73	-2.02	----	-0.39	2.35	2.73
2086	17.69	15.73	-1.97	----	-0.38	2.35	2.73
2087	17.63	15.72	-1.90	----	-0.38	2.35	2.73
2088	17.56	15.72	-1.84	----	-0.38	2.35	2.73
2089	17.49	15.72	-1.77	----	-0.38	2.35	2.73
2090	17.44	15.72	-1.72	----	-0.38	2.35	2.73
2091	17.39	15.71	-1.68	----	-0.37	2.35	2.73
2092	17.36	15.71	-1.65	----	-0.37	2.35	2.73
2093	17.34	15.71	-1.63	----	-0.37	2.36	2.73
2094	17.33	15.71	-1.62	----	-0.37	2.36	2.73
2095	17.33	15.72	-1.62	----	-0.37	2.36	2.73
2096	17.34	15.72	-1.62	----	-0.37	2.36	2.73

Summarized Estimates

	Proposal				Change from Current Law
Years	Cost rate	Income rate	Actuarial balance	Year of reserve depletion¹	Cost rate	Income rate	Actuarial balance
2021-2095	17.04%	15.97%	-1.07%	2054	-0.27%	2.20%	2.47%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2021 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 2022, 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 2022, and tax all earnings once the current-law taxable maximum exceeds $250,000. Do not provide benefit credit for additional earnings taxed.