Description of Proposed Provision:
E3.14: Eliminate the taxable maximum for the employer payroll tax (6.2 percent) beginning in 2019. For the employee payroll tax (6.2 percent) and for benefit credit purposes, beginning in 2019, increase the taxable maximum by an additional 2 percent per year until taxable earnings equal 90 percent of covered earnings.

Estimates based on the intermediate assumptions of the 2018 Trustees Report

Summary Measures
Current law
[percent of payroll]		   Change from current law
[percent of payroll]		   Shortfall eliminated
Long-range
actuarial
balance		 Annual
balance in
75th year		   Long-range
actuarial
balance		 Annual
balance in
75th year		   Long-range
actuarial
balance		 Annual
balance in
75th year
-2.84 -4.32   1.45 1.41   51% 33%

graph of OASDI cost rates and income rates by year, under current law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under current law and provision. click on graph to view underlying data.