Description of Proposed Provision:
E2.11: Eliminate the taxable maximum in years 2024 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 2.48 percent in 2020, 4.96 percent in 2021, and so on, up to 12.40 percent in 2024. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2019 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 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 |
|||
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 | 13.37 | -0.76 | 256 | 0.00 | 0.47 | 0.47 | ||
2021 | 14.27 | 13.88 | -0.39 | 243 | -0.00 | 0.96 | 0.97 | ||
2022 | 14.44 | 14.38 | -0.06 | 232 | -0.00 | 1.43 | 1.44 | ||
2023 | 14.62 | 14.85 | 0.23 | 224 | -0.00 | 1.89 | 1.89 | ||
2024 | 14.80 | 15.31 | 0.51 | 219 | -0.00 | 2.32 | 2.32 | ||
2025 | 14.98 | 15.34 | 0.36 | 216 | -0.00 | 2.34 | 2.34 | ||
2026 | 15.16 | 15.45 | 0.30 | 212 | -0.00 | 2.32 | 2.32 | ||
2027 | 15.37 | 15.46 | 0.10 | 209 | 0.00 | 2.31 | 2.31 | ||
2028 | 15.59 | 15.48 | -0.11 | 205 | 0.00 | 2.31 | 2.30 | ||
2029 | 15.80 | 15.50 | -0.30 | 201 | 0.01 | 2.31 | 2.30 | ||
2030 | 15.99 | 15.51 | -0.48 | 197 | 0.01 | 2.31 | 2.30 | ||
2031 | 16.17 | 15.53 | -0.65 | 193 | 0.01 | 2.31 | 2.30 | ||
2032 | 16.33 | 15.54 | -0.79 | 188 | 0.02 | 2.31 | 2.30 | ||
2033 | 16.47 | 15.55 | -0.92 | 184 | 0.02 | 2.31 | 2.29 | ||
2034 | 16.59 | 15.56 | -1.03 | 180 | 0.02 | 2.32 | 2.29 | ||
2035 | 16.68 | 15.57 | -1.11 | 175 | 0.03 | 2.32 | 2.29 | ||
2036 | 16.76 | 15.58 | -1.18 | 170 | 0.03 | 2.32 | 2.28 | ||
2037 | 16.82 | 15.58 | -1.24 | 164 | 0.04 | 2.32 | 2.28 | ||
2038 | 16.86 | 15.59 | -1.27 | 158 | 0.04 | 2.32 | 2.28 | ||
2039 | 16.88 | 15.59 | -1.28 | 153 | 0.05 | 2.32 | 2.28 | ||
2040 | 16.88 | 15.60 | -1.28 | 147 | 0.05 | 2.32 | 2.27 | ||
2041 | 16.86 | 15.60 | -1.27 | 141 | 0.05 | 2.32 | 2.27 | ||
2042 | 16.83 | 15.60 | -1.24 | 136 | 0.06 | 2.33 | 2.27 | ||
2043 | 16.80 | 15.60 | -1.20 | 130 | 0.06 | 2.33 | 2.26 | ||
2044 | 16.76 | 15.60 | -1.16 | 125 | 0.07 | 2.33 | 2.26 | ||
2045 | 16.73 | 15.60 | -1.13 | 119 | 0.07 | 2.33 | 2.26 | ||
2046 | 16.70 | 15.60 | -1.11 | 114 | 0.08 | 2.33 | 2.25 | ||
2047 | 16.68 | 15.60 | -1.08 | 109 | 0.08 | 2.33 | 2.25 | ||
2048 | 16.66 | 15.60 | -1.06 | 104 | 0.09 | 2.33 | 2.25 | ||
2049 | 16.64 | 15.60 | -1.04 | 99 | 0.09 | 2.33 | 2.24 | ||
2050 | 16.64 | 15.60 | -1.03 | 94 | 0.09 | 2.34 | 2.24 | ||
2051 | 16.63 | 15.61 | -1.03 | 89 | 0.10 | 2.34 | 2.24 | ||
2052 | 16.64 | 15.61 | -1.03 | 84 | 0.10 | 2.34 | 2.24 | ||
2053 | 16.65 | 15.61 | -1.04 | 79 | 0.11 | 2.34 | 2.23 | ||
2054 | 16.67 | 15.61 | -1.06 | 73 | 0.11 | 2.34 | 2.23 | ||
2055 | 16.71 | 15.62 | -1.09 | 68 | 0.12 | 2.34 | 2.23 | ||
2056 | 16.74 | 15.62 | -1.12 | 62 | 0.12 | 2.34 | 2.22 | ||
2057 | 16.79 | 15.63 | -1.16 | 56 | 0.12 | 2.35 | 2.22 | ||
2058 | 16.84 | 15.63 | -1.21 | 50 | 0.13 | 2.35 | 2.22 | ||
2059 | 16.89 | 15.64 | -1.25 | 43 | 0.13 | 2.35 | 2.22 | ||
2060 | 16.95 | 15.64 | -1.30 | 37 | 0.14 | 2.35 | 2.21 | ||
2061 | 17.00 | 15.65 | -1.35 | 29 | 0.14 | 2.35 | 2.21 | ||
2062 | 17.05 | 15.66 | -1.40 | 22 | 0.14 | 2.35 | 2.21 | ||
2063 | 17.11 | 15.66 | -1.45 | 14 | 0.15 | 2.35 | 2.21 | ||
2064 | 17.17 | 15.67 | -1.50 | 6 | 0.15 | 2.36 | 2.20 | ||
2065 | 17.22 | 15.67 | -1.55 | ---- | 0.15 | 2.36 | 2.20 | ||
2066 | 17.28 | 15.68 | -1.61 | ---- | 0.16 | 2.36 | 2.20 | ||
2067 | 17.34 | 15.68 | -1.66 | ---- | 0.16 | 2.36 | 2.20 | ||
2068 | 17.41 | 15.69 | -1.72 | ---- | 0.16 | 2.36 | 2.20 | ||
2069 | 17.47 | 15.69 | -1.78 | ---- | 0.17 | 2.36 | 2.20 | ||
2070 | 17.53 | 15.70 | -1.83 | ---- | 0.17 | 2.36 | 2.20 | ||
2071 | 17.59 | 15.70 | -1.89 | ---- | 0.17 | 2.37 | 2.19 | ||
2072 | 17.64 | 15.71 | -1.93 | ---- | 0.17 | 2.37 | 2.19 | ||
2073 | 17.69 | 15.71 | -1.97 | ---- | 0.18 | 2.37 | 2.19 | ||
2074 | 17.73 | 15.72 | -2.01 | ---- | 0.18 | 2.37 | 2.19 | ||
2075 | 17.77 | 15.72 | -2.04 | ---- | 0.18 | 2.37 | 2.19 | ||
2076 | 17.79 | 15.73 | -2.06 | ---- | 0.18 | 2.37 | 2.19 | ||
2077 | 17.81 | 15.73 | -2.08 | ---- | 0.18 | 2.37 | 2.19 | ||
2078 | 17.81 | 15.73 | -2.08 | ---- | 0.18 | 2.38 | 2.19 | ||
2079 | 17.80 | 15.73 | -2.07 | ---- | 0.18 | 2.38 | 2.19 | ||
2080 | 17.79 | 15.73 | -2.06 | ---- | 0.18 | 2.38 | 2.19 | ||
2081 | 17.77 | 15.73 | -2.04 | ---- | 0.19 | 2.38 | 2.19 | ||
2082 | 17.76 | 15.73 | -2.02 | ---- | 0.19 | 2.38 | 2.20 | ||
2083 | 17.74 | 15.73 | -2.01 | ---- | 0.19 | 2.38 | 2.20 | ||
2084 | 17.73 | 15.73 | -1.99 | ---- | 0.19 | 2.38 | 2.20 | ||
2085 | 17.72 | 15.74 | -1.98 | ---- | 0.19 | 2.38 | 2.20 | ||
2086 | 17.72 | 15.74 | -1.98 | ---- | 0.19 | 2.39 | 2.20 | ||
2087 | 17.72 | 15.74 | -1.98 | ---- | 0.19 | 2.39 | 2.20 | ||
2088 | 17.73 | 15.74 | -1.99 | ---- | 0.19 | 2.39 | 2.20 | ||
2089 | 17.76 | 15.74 | -2.01 | ---- | 0.19 | 2.39 | 2.20 | ||
2090 | 17.79 | 15.75 | -2.04 | ---- | 0.19 | 2.39 | 2.20 | ||
2091 | 17.83 | 15.75 | -2.08 | ---- | 0.19 | 2.39 | 2.20 | ||
2092 | 17.87 | 15.75 | -2.12 | ---- | 0.19 | 2.39 | 2.20 | ||
2093 | 17.92 | 15.76 | -2.16 | ---- | 0.19 | 2.40 | 2.20 |
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 | 16.78% | 16.05% | -0.73% | 2064 | 0.09% | 2.20% | 2.11% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2018 Trustees Report.