Description of Proposed Provision:
E2.15: Apply OASDI 12.4 percent payroll tax rate on earnings above $300,000 starting in 2020, and tax all earnings once the current-law taxable maximum exceeds $300,000. 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 3 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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1214.06-0.06
256
0.001.171.17
202114.2714.20-0.07
247
-0.001.281.28
202214.4414.27-0.17
239
-0.001.321.32
202314.6214.33-0.29
230
-0.001.361.36
202414.8014.40-0.40
221
-0.001.401.41
202514.9814.45-0.53
212
-0.001.441.45
202615.1614.62-0.54
203
-0.001.481.48
202715.3614.68-0.69
194
0.001.521.52
202815.5814.75-0.84
186
0.001.571.57
202915.7914.81-0.98
178
0.001.621.62
203015.9914.88-1.11
170
0.001.681.67
203116.1614.95-1.22
162
0.001.731.73
203216.3215.02-1.31
154
0.001.791.78
203316.4615.09-1.37
147
0.011.851.84
203416.5715.16-1.42
140
0.011.911.90
203516.6615.23-1.43
132
0.011.981.97
203616.7315.30-1.43
125
0.012.042.03
203716.8015.38-1.41
117
0.012.112.10
203816.8315.46-1.38
110
0.012.192.18
203916.8515.54-1.31
104
0.012.272.25
204016.8415.59-1.26
97
0.022.322.30
204116.8315.59-1.23
91
0.022.322.30
204216.7915.59-1.20
85
0.022.322.30
204316.7615.59-1.16
79
0.022.322.30
204416.7215.59-1.13
73
0.022.322.30
204516.6815.59-1.09
68
0.022.322.30
204616.6515.59-1.06
62
0.032.322.30
204716.6315.59-1.04
57
0.032.332.30
204816.6115.59-1.01
51
0.032.332.30
204916.5915.59-0.99
46
0.032.332.30
205016.5815.60-0.98
41
0.032.332.30
205116.5715.60-0.97
35
0.032.332.29
205216.5715.60-0.97
30
0.042.332.29
205316.5815.60-0.98
25
0.042.332.29
205416.6015.61-1.00
19
0.042.332.29
205516.6315.61-1.02
14
0.042.332.29
205616.6715.61-1.05
8
0.042.332.29
205716.7115.62-1.09
2
0.052.342.29
205816.7615.62-1.14
----
0.052.342.29
205916.8115.63-1.18
----
0.052.342.29
206016.8615.63-1.23
----
0.052.342.29
206116.9115.64-1.27
----
0.052.342.29
206216.9615.64-1.32
----
0.052.342.29
206317.0215.65-1.37
----
0.062.342.29
206417.0715.65-1.42
----
0.062.342.29
206517.1315.66-1.47
----
0.062.342.29
206617.1815.66-1.52
----
0.062.352.29
206717.2415.67-1.57
----
0.062.352.29
206817.3015.68-1.63
----
0.062.352.29
206917.3715.68-1.69
----
0.062.352.29
207017.4315.69-1.74
----
0.062.352.29
207117.4915.69-1.79
----
0.072.352.29
207217.5415.70-1.84
----
0.072.352.29
207317.5815.70-1.88
----
0.072.362.29
207417.6215.71-1.92
----
0.072.362.29
207517.6615.71-1.95
----
0.072.362.29
207617.6815.71-1.97
----
0.072.362.29
207717.6915.72-1.98
----
0.072.362.29
207817.7015.72-1.98
----
0.072.362.29
207917.6915.72-1.97
----
0.072.362.29
208017.6815.72-1.96
----
0.072.362.29
208117.6615.72-1.94
----
0.072.372.29
208217.6415.72-1.92
----
0.072.372.29
208317.6315.72-1.91
----
0.072.372.30
208417.6115.72-1.89
----
0.072.372.30
208517.6015.72-1.88
----
0.072.372.30
208617.6015.72-1.88
----
0.072.372.30
208717.6115.72-1.88
----
0.072.372.30
208817.6215.73-1.89
----
0.082.382.30
208917.6415.73-1.91
----
0.082.382.30
209017.6715.73-1.94
----
0.082.382.30
209117.7115.74-1.98
----
0.082.382.30
209217.7615.74-2.01
----
0.082.382.30
209317.8015.75-2.06
----
0.082.382.30


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 16.72% 15.90% -0.82%
2057
0.03% 2.06% 2.03%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.