Proposed Provision: Eliminate the taxable maximum in years 2022 and later (phase in by applying a portion of the payroll tax rate to earnings above the current-law taxable maximum: 1.24 percent in 2013; 2.48 percent in 2014; ; 11.16 percent in 2021). Provide benefit credit for earnings above the current-law taxable maximum (phased in at the same proportion as the payroll tax rate during 2013-2021). Revise the benefit formula by adding a bend point at the current-law taxable maximum and applying a formula factor of 5 percent for AIME above this new bend point.

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

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201112.512.513.313.3
201212.912.913.213.2
201312.913.113.213.2
201412.913.413.213.2
201512.913.613.213.2
201613.013.913.313.3
201713.014.113.513.5
201813.014.413.613.6
201913.014.713.913.9
202013.114.914.214.2
202113.115.114.514.5
202213.115.414.814.9
202313.115.415.115.2
202413.115.515.415.4
202513.115.515.715.7
202613.215.515.916.0
202713.215.516.116.2
202813.215.516.316.4
202913.215.516.516.6
203013.215.516.716.8
203113.215.616.816.9
203213.215.616.917.0
203313.215.616.917.1
203413.215.617.017.1
203513.215.617.017.2
203613.215.617.017.2
203713.215.617.017.2
203813.215.617.017.2
203913.215.617.017.2
204013.215.617.017.2
204113.215.616.917.1
204213.215.616.917.1
204313.215.616.817.1
204413.215.616.817.1
204513.215.616.817.1
204613.215.616.817.0
204713.215.616.717.0
204813.215.616.717.0
204913.215.616.717.0
205013.215.616.717.0
205113.215.616.717.0
205213.215.616.717.0
205313.215.616.717.0
205413.215.616.717.0
205513.315.616.717.0
205613.315.616.717.0
205713.315.616.817.1
205813.315.616.817.1
205913.315.616.817.1
206013.315.716.817.1
206113.315.716.817.1
206213.315.716.817.1
206313.315.716.817.1
206413.315.716.817.2
206513.315.716.917.2
206613.315.716.917.2
206713.315.716.917.2
206813.315.716.917.3
206913.315.717.017.3
207013.315.717.017.3
207113.315.717.017.3
207213.315.717.117.4
207313.315.717.117.4
207413.315.717.117.5
207513.315.717.217.5
207613.315.717.217.5
207713.315.717.217.6
207813.315.717.317.6
207913.315.717.317.6
208013.315.717.417.7
208113.315.717.417.7
208213.315.717.417.8
208313.315.717.517.8
208413.315.717.517.8
208513.315.717.617.9
208613.315.717.617.9
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