Description of Proposed Provision:
F6: Apply a 6.2 percent tax on investment income as defined in the Affordable Care Act (ACA), with unindexed thresholds as in the ACA ($200,000 for single filer, $250,000 for married filing jointly), starting in 2020. Proceeds go to the OASI and DI Trust Funds.
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 | 13.64 | -0.49 | 256 | 0.00 | 0.75 | 0.75 | ||
| 2021 | 14.27 | 13.67 | -0.60 | 245 | -0.00 | 0.75 | 0.75 | ||
| 2022 | 14.44 | 13.71 | -0.73 | 233 | -0.00 | 0.76 | 0.76 | ||
| 2023 | 14.62 | 13.73 | -0.89 | 220 | -0.00 | 0.77 | 0.77 | ||
| 2024 | 14.80 | 13.77 | -1.04 | 208 | -0.00 | 0.77 | 0.77 | ||
| 2025 | 14.98 | 13.79 | -1.19 | 195 | -0.00 | 0.78 | 0.78 | ||
| 2026 | 15.16 | 13.92 | -1.24 | 182 | -0.00 | 0.79 | 0.79 | ||
| 2027 | 15.36 | 13.95 | -1.42 | 170 | -0.00 | 0.79 | 0.79 | ||
| 2028 | 15.58 | 13.97 | -1.61 | 157 | -0.00 | 0.80 | 0.80 | ||
| 2029 | 15.79 | 14.00 | -1.79 | 145 | -0.00 | 0.81 | 0.81 | ||
| 2030 | 15.98 | 14.02 | -1.96 | 132 | -0.00 | 0.82 | 0.82 | ||
| 2031 | 16.16 | 14.04 | -2.12 | 119 | -0.00 | 0.83 | 0.83 | ||
| 2032 | 16.32 | 14.06 | -2.25 | 106 | -0.00 | 0.84 | 0.84 | ||
| 2033 | 16.45 | 14.08 | -2.37 | 93 | -0.00 | 0.84 | 0.84 | ||
| 2034 | 16.56 | 14.10 | -2.47 | 80 | -0.00 | 0.85 | 0.85 | ||
| 2035 | 16.65 | 14.11 | -2.54 | 66 | -0.00 | 0.86 | 0.86 | ||
| 2036 | 16.72 | 14.13 | -2.59 | 51 | -0.00 | 0.87 | 0.87 | ||
| 2037 | 16.78 | 14.14 | -2.64 | 37 | -0.00 | 0.88 | 0.88 | ||
| 2038 | 16.82 | 14.16 | -2.66 | 21 | -0.00 | 0.89 | 0.89 | ||
| 2039 | 16.83 | 14.17 | -2.66 | 6 | -0.00 | 0.90 | 0.90 | ||
| 2040 | 16.83 | 14.18 | -2.65 | ---- | -0.00 | 0.90 | 0.91 | ||
| 2041 | 16.81 | 14.19 | -2.62 | ---- | -0.00 | 0.91 | 0.91 | ||
| 2042 | 16.77 | 14.19 | -2.58 | ---- | -0.00 | 0.92 | 0.92 | ||
| 2043 | 16.73 | 14.20 | -2.53 | ---- | -0.00 | 0.93 | 0.93 | ||
| 2044 | 16.69 | 14.21 | -2.49 | ---- | -0.00 | 0.94 | 0.94 | ||
| 2045 | 16.66 | 14.21 | -2.45 | ---- | -0.00 | 0.94 | 0.95 | ||
| 2046 | 16.63 | 14.22 | -2.41 | ---- | -0.00 | 0.95 | 0.95 | ||
| 2047 | 16.60 | 14.23 | -2.37 | ---- | -0.00 | 0.96 | 0.96 | ||
| 2048 | 16.57 | 14.23 | -2.34 | ---- | -0.00 | 0.97 | 0.97 | ||
| 2049 | 16.55 | 14.24 | -2.31 | ---- | -0.00 | 0.97 | 0.98 | ||
| 2050 | 16.54 | 14.25 | -2.29 | ---- | -0.00 | 0.98 | 0.98 | ||
| 2051 | 16.53 | 14.26 | -2.28 | ---- | -0.00 | 0.99 | 0.99 | ||
| 2052 | 16.53 | 14.26 | -2.27 | ---- | -0.00 | 0.99 | 0.99 | ||
| 2053 | 16.54 | 14.27 | -2.27 | ---- | -0.00 | 1.00 | 1.00 | ||
| 2054 | 16.56 | 14.28 | -2.28 | ---- | -0.00 | 1.00 | 1.01 | ||
| 2055 | 16.59 | 14.29 | -2.30 | ---- | -0.00 | 1.01 | 1.01 | ||
| 2056 | 16.62 | 14.29 | -2.33 | ---- | -0.00 | 1.02 | 1.02 | ||
| 2057 | 16.66 | 14.30 | -2.36 | ---- | -0.00 | 1.02 | 1.02 | ||
| 2058 | 16.71 | 14.31 | -2.40 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2059 | 16.76 | 14.32 | -2.44 | ---- | -0.00 | 1.03 | 1.03 | ||
| 2060 | 16.81 | 14.33 | -2.48 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2061 | 16.86 | 14.34 | -2.52 | ---- | -0.00 | 1.04 | 1.04 | ||
| 2062 | 16.91 | 14.35 | -2.56 | ---- | -0.00 | 1.05 | 1.05 | ||
| 2063 | 16.96 | 14.36 | -2.60 | ---- | -0.00 | 1.05 | 1.05 | ||
| 2064 | 17.01 | 14.37 | -2.65 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2065 | 17.07 | 14.38 | -2.69 | ---- | -0.00 | 1.06 | 1.06 | ||
| 2066 | 17.12 | 14.38 | -2.74 | ---- | -0.00 | 1.07 | 1.07 | ||
| 2067 | 17.18 | 14.39 | -2.79 | ---- | -0.00 | 1.07 | 1.07 | ||
| 2068 | 17.24 | 14.40 | -2.84 | ---- | -0.00 | 1.07 | 1.08 | ||
| 2069 | 17.30 | 14.41 | -2.89 | ---- | -0.00 | 1.08 | 1.08 | ||
| 2070 | 17.36 | 14.42 | -2.95 | ---- | -0.00 | 1.08 | 1.08 | ||
| 2071 | 17.42 | 14.43 | -2.99 | ---- | -0.00 | 1.09 | 1.09 | ||
| 2072 | 17.47 | 14.43 | -3.04 | ---- | -0.00 | 1.09 | 1.09 | ||
| 2073 | 17.51 | 14.44 | -3.07 | ---- | -0.00 | 1.09 | 1.09 | ||
| 2074 | 17.55 | 14.45 | -3.11 | ---- | -0.00 | 1.10 | 1.10 | ||
| 2075 | 17.59 | 14.45 | -3.13 | ---- | -0.00 | 1.10 | 1.10 | ||
| 2076 | 17.61 | 14.46 | -3.15 | ---- | -0.00 | 1.10 | 1.11 | ||
| 2077 | 17.62 | 14.46 | -3.16 | ---- | -0.00 | 1.11 | 1.11 | ||
| 2078 | 17.62 | 14.47 | -3.16 | ---- | -0.00 | 1.11 | 1.11 | ||
| 2079 | 17.62 | 14.47 | -3.15 | ---- | -0.00 | 1.12 | 1.12 | ||
| 2080 | 17.60 | 14.47 | -3.13 | ---- | -0.00 | 1.12 | 1.12 | ||
| 2081 | 17.59 | 14.48 | -3.11 | ---- | -0.00 | 1.12 | 1.12 | ||
| 2082 | 17.57 | 14.48 | -3.09 | ---- | -0.00 | 1.13 | 1.13 | ||
| 2083 | 17.55 | 14.48 | -3.07 | ---- | -0.00 | 1.13 | 1.13 | ||
| 2084 | 17.54 | 14.48 | -3.05 | ---- | -0.00 | 1.13 | 1.13 | ||
| 2085 | 17.53 | 14.49 | -3.04 | ---- | -0.00 | 1.14 | 1.14 | ||
| 2086 | 17.53 | 14.49 | -3.04 | ---- | -0.00 | 1.14 | 1.14 | ||
| 2087 | 17.53 | 14.49 | -3.04 | ---- | -0.00 | 1.14 | 1.14 | ||
| 2088 | 17.54 | 14.50 | -3.05 | ---- | -0.00 | 1.14 | 1.15 | ||
| 2089 | 17.57 | 14.50 | -3.07 | ---- | -0.00 | 1.15 | 1.15 | ||
| 2090 | 17.60 | 14.50 | -3.09 | ---- | -0.00 | 1.15 | 1.15 | ||
| 2091 | 17.63 | 14.51 | -3.13 | ---- | -0.00 | 1.15 | 1.15 | ||
| 2092 | 17.68 | 14.51 | -3.16 | ---- | -0.00 | 1.15 | 1.16 | ||
| 2093 | 17.72 | 14.52 | -3.20 | ---- | -0.00 | 1.16 | 1.16 | ||
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 | 16.68% | 14.78% | -1.90% | 2039 | -0.00% | 0.94% | 0.94% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.