Proposed Provision: E2.4. Eliminate the taxable maximum for years 2029 and later (phased in 2023-2029), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2022 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $8,933 in 2023, indexed by wages after 2023; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.

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

  Income Rates Cost Rates
Year Current Law Provision Current Law Provision
202212.812.814.114.1
202313.013.414.314.3
202413.013.714.414.4
202513.014.114.714.7
202613.114.614.914.9
202713.115.015.115.1
202813.115.415.315.3
202913.215.715.515.5
203013.215.715.715.7
203113.215.715.915.9
203213.215.716.116.1
203313.315.816.216.2
203413.315.816.316.3
203513.315.816.416.4
203613.315.816.516.5
203713.315.816.616.5
203813.315.816.616.6
203913.315.816.716.7
204013.315.816.716.7
204113.315.816.716.7
204213.315.816.816.7
204313.315.816.816.7
204413.315.816.816.8
204513.315.816.816.8
204613.315.816.816.8
204713.315.816.916.8
204813.315.816.916.8
204913.315.816.916.9
205013.315.816.916.9
205113.315.817.016.9
205213.315.817.017.0
205313.315.817.117.0
205413.315.917.117.1
205513.315.917.117.1
205613.315.917.217.2
205713.315.917.317.2
205813.415.917.317.3
205913.415.917.417.4
206013.415.917.517.4
206113.415.917.517.5
206213.415.917.617.6
206313.415.917.617.6
206413.415.917.717.7
206513.415.917.717.7
206613.415.917.817.8
206713.415.917.817.8
206813.415.917.917.9
206913.415.917.918.0
207013.415.918.018.0
207113.415.918.118.1
207213.416.018.118.1
207313.416.018.218.2
207413.416.018.218.2
207513.416.018.318.3
207613.416.018.318.3
207713.416.018.318.4
207813.416.018.318.4
207913.416.018.318.4
208013.416.018.318.4
208113.416.018.318.3
208213.416.018.218.3
208313.416.018.218.3
208413.416.018.218.2
208513.416.018.118.2
208613.416.018.018.1
208713.416.018.018.0
208813.416.017.918.0
208913.416.017.917.9
209013.416.017.817.8
209113.415.917.717.8
209213.415.917.717.8
209313.415.917.717.7
209413.415.917.717.7
209513.415.917.617.7
209613.415.917.617.7
209713.415.917.617.7
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