Proposed Provision: Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2018, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2018, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2018 exclusion level until fully eliminated in 2028. Eliminate the excise tax on ESI premiums scheduled to begin in 2018.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2012340340
2013329329
2014315315
2015302302
2016290290
2017277277
2018265265
2019253254
2020240243
2021227232
2022212221
2023197210
2024181199
2025164188
2026147177
2027129167
2028110157
202990146
203070134
203149122
203227109
2033596
2034-1882
2035-4169
2036-6555
2037-8941
2038-11426
2039-13812
2040-163-3
2041-189-17
2042-215-32
2043-240-47
2044-266-61
2045-292-76
2046-319-91
2047-346-106
2048-373-121
2049-400-137
2050-428-152
2051-456-168
2052-484-184
2053-512-200
2054-540-216
2055-569-232
2056-598-249
2057-628-266
2058-657-283
2059-688-301
2060-719-319
2061-750-337
2062-782-356
2063-814-375
2064-847-394
2065-880-413
2066-913-433
2067-946-453
2068-980-473
2069-1014-494
2070-1049-515
2071-1084-536
2072-1120-558
2073-1156-580
2074-1193-602
2075-1230-625
2076-1268-648
2077-1307-672
2078-1346-696
2079-1385-720
2080-1425-745
2081-1465-769
2082-1505-794
2083-1547-820
2084-1588-846
2085-1631-872
2086-1673-898
2087-1717-925
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