Proposed Provision: E3.16. Beginning in 2025, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015 (about $589,500 in 2025), with the threshold wage-indexed after 2025. Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings taxed only between 2015 wage-indexed equivalents of $400,000 and $500,000, or about $589,500 and $736,800 in 2025 (with thresholds wage-indexed after 2025); and (2) a formula factor of 2 percent on this newly computed "AIME+".

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Current Law Provision Current Law Provision
202313.313.314.514.5
202412.912.914.914.9
202513.013.315.015.0
202613.113.415.215.2
202713.113.415.415.4
202813.113.415.615.6
202913.213.515.715.7
203013.213.515.915.9
203113.213.516.016.0
203213.213.616.116.1
203313.213.616.316.3
203413.313.616.416.4
203513.313.616.516.5
203613.313.616.616.6
203713.313.616.616.6
203813.313.616.716.7
203913.313.616.716.7
204013.313.616.816.8
204113.313.616.816.8
204213.313.616.816.8
204313.313.616.816.8
204413.313.616.816.8
204513.313.616.916.9
204613.313.616.916.9
204713.313.616.916.9
204813.313.616.916.9
204913.313.617.016.9
205013.313.617.017.0
205113.313.717.017.0
205213.313.717.117.0
205313.313.717.117.1
205413.313.717.217.2
205513.313.717.217.2
205613.313.717.317.3
205713.413.717.417.4
205813.413.717.517.4
205913.413.717.517.5
206013.413.717.617.6
206113.413.717.717.7
206213.413.717.817.7
206313.413.717.817.8
206413.413.717.917.9
206513.413.717.917.9
206613.413.718.018.0
206713.413.718.118.0
206813.413.718.118.1
206913.413.718.218.2
207013.413.818.218.2
207113.413.818.318.3
207213.413.818.318.3
207313.413.818.418.4
207413.413.818.418.4
207513.413.818.518.5
207613.413.818.518.5
207713.413.818.518.5
207813.413.818.518.5
207913.413.818.518.5
208013.413.818.518.5
208113.413.818.418.4
208213.413.818.418.4
208313.413.818.318.3
208413.413.818.318.3
208513.413.818.218.2
208613.413.818.218.2
208713.413.818.118.1
208813.413.718.018.0
208913.413.718.017.9
209013.413.717.917.9
209113.413.717.817.8
209213.413.717.817.8
209313.413.717.817.8
209413.413.717.817.7
209513.413.717.717.7
209613.413.717.717.7
209713.413.717.817.7
209813.413.717.817.8
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