Proposed Provision: Eliminate the taxable maximum for years 2019 and later (phased in 2013-2018), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that were taxed after 2012, using a secondary PIA formula. This secondary PIA formula uses: (1) an “AIME+” derived from annual earnings from each year after 2012 that were in excess of that year’s current-law taxable maximum; (2) a bend point equal to 134 percent higher of the monthly current-law taxable maximum; and (3) formula factors of 3 percent and 0.25 percent, respectively.

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

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201212.912.913.813.8
201312.813.214.014.0
201412.913.614.014.0
201513.014.014.014.0
201613.014.413.913.9
201713.014.713.913.9
201813.015.114.014.0
201913.115.414.114.1
202013.115.414.414.4
202113.115.414.714.7
202213.115.415.015.0
202313.115.515.315.3
202413.215.515.615.6
202513.215.515.915.9
202613.215.516.216.2
202713.215.516.416.4
202813.215.616.616.6
202913.215.616.816.8
203013.215.617.017.0
203113.315.617.117.2
203213.315.617.217.3
203313.315.617.317.3
203413.315.617.417.4
203513.315.617.417.4
203613.315.617.417.4
203713.315.617.417.4
203813.315.617.417.4
203913.315.617.417.4
204013.315.617.417.4
204113.315.617.317.3
204213.315.617.317.3
204313.315.617.217.3
204413.315.617.217.2
204513.315.617.217.2
204613.315.617.217.2
204713.315.617.117.2
204813.315.617.117.1
204913.315.617.117.1
205013.315.617.117.1
205113.315.617.117.1
205213.315.617.117.1
205313.315.617.117.1
205413.315.617.117.1
205513.315.617.117.1
205613.315.617.117.1
205713.315.617.117.1
205813.315.617.117.2
205913.315.617.117.2
206013.315.617.217.2
206113.315.617.217.2
206213.315.717.217.2
206313.315.717.217.2
206413.315.717.217.2
206513.315.717.217.2
206613.315.717.217.2
206713.315.717.217.3
206813.315.717.317.3
206913.315.717.317.3
207013.315.717.317.4
207113.315.717.417.4
207213.315.717.417.4
207313.315.717.417.4
207413.315.717.417.5
207513.315.717.517.5
207613.315.717.517.5
207713.315.717.517.5
207813.315.717.517.6
207913.315.717.617.6
208013.315.717.617.6
208113.315.717.617.7
208213.315.717.717.7
208313.315.717.717.7
208413.315.717.817.8
208513.315.717.817.8
208613.315.717.817.9
208713.315.717.917.9
back