Long Range Solvency Provisions

Description of Proposed Provision:
E2.1: Eliminate the taxable maximum in years 2022 and later, and apply full 12.4 percent payroll tax rate to all earnings. Do not provide benefit credit for earnings above the current-law 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	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	15.32	1.02	231	0.00	2.39	2.39
2023	14.43	15.35	0.92	230	-0.00	2.43	2.44
2024	14.63	15.34	0.71	228	-0.01	2.39	2.40
2025	14.84	15.34	0.49	224	-0.01	2.38	2.39
2026	15.09	15.44	0.36	219	-0.02	2.37	2.38
2027	15.34	15.45	0.11	214	-0.03	2.35	2.38
2028	15.59	15.48	-0.11	208	-0.04	2.34	2.37
2029	15.82	15.49	-0.33	202	-0.05	2.32	2.38
2030	16.04	15.50	-0.54	195	-0.07	2.31	2.38
2031	16.20	15.51	-0.69	188	-0.08	2.31	2.39
2032	16.33	15.53	-0.81	181	-0.10	2.31	2.41
2033	16.44	15.54	-0.90	175	-0.12	2.31	2.43
2034	16.52	15.54	-0.97	168	-0.14	2.31	2.45
2035	16.58	15.55	-1.03	163	-0.16	2.31	2.46
2036	16.63	15.56	-1.07	158	-0.17	2.31	2.48
2037	16.67	15.56	-1.11	153	-0.19	2.31	2.50
2038	16.71	15.57	-1.14	147	-0.21	2.31	2.51
2039	16.73	15.57	-1.16	142	-0.22	2.31	2.53
2040	16.74	15.58	-1.17	136	-0.23	2.31	2.54
2041	16.77	15.58	-1.19	131	-0.25	2.31	2.55
2042	16.78	15.58	-1.20	125	-0.26	2.31	2.57
2043	16.77	15.58	-1.19	119	-0.27	2.31	2.58
2044	16.76	15.59	-1.18	113	-0.28	2.31	2.59
2045	16.76	15.59	-1.17	108	-0.29	2.31	2.60
2046	16.75	15.59	-1.16	102	-0.30	2.31	2.61
2047	16.76	15.59	-1.17	96	-0.31	2.31	2.62
2048	16.78	15.60	-1.18	90	-0.32	2.31	2.63
2049	16.79	15.60	-1.19	84	-0.33	2.31	2.64
2050	16.80	15.60	-1.20	78	-0.34	2.31	2.65
2051	16.82	15.61	-1.21	71	-0.34	2.31	2.66
2052	16.84	15.61	-1.23	65	-0.35	2.31	2.66
2053	16.86	15.61	-1.25	58	-0.36	2.31	2.67
2054	16.89	15.62	-1.28	51	-0.36	2.31	2.67
2055	16.93	15.62	-1.31	44	-0.36	2.32	2.68
2056	16.97	15.63	-1.34	37	-0.37	2.32	2.68
2057	17.01	15.63	-1.38	29	-0.37	2.32	2.69
2058	17.06	15.64	-1.43	22	-0.37	2.32	2.69
2059	17.11	15.64	-1.47	14	-0.38	2.32	2.70
2060	17.17	15.65	-1.52	5	-0.38	2.32	2.70
2061	17.22	15.65	-1.57	----	-0.38	2.32	2.70
2062	17.27	15.66	-1.61	----	-0.38	2.32	2.70
2063	17.32	15.66	-1.66	----	-0.38	2.32	2.71
2064	17.37	15.67	-1.70	----	-0.39	2.32	2.71
2065	17.42	15.67	-1.74	----	-0.39	2.32	2.71
2066	17.47	15.68	-1.79	----	-0.39	2.32	2.71
2067	17.52	15.68	-1.83	----	-0.39	2.33	2.71
2068	17.57	15.69	-1.88	----	-0.39	2.33	2.72
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	17.03%	16.08%	-0.96%	2060	-0.28%	2.30%	2.58%
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: E2.1: Eliminate the taxable maximum in years 2022 and later, and apply full 12.4 percent payroll tax rate to all earnings. Do not provide benefit credit for earnings above the current-law taxable maximum.

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates

Description of Proposed Provision:
E2.1: Eliminate the taxable maximum in years 2022 and later, and apply full 12.4 percent payroll tax rate to all earnings. Do not provide benefit credit for earnings above the current-law taxable maximum.