Proposed Provision: Eliminate the taxable maximum for years 2022 and later (phased in 2016-2021), 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 2015 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to 134 percent of the monthly current-law taxable maximum; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.

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

Year Present Law Provision
2015308308
2016298298
2017280283
2018264271
2019248263
2020233257
2021219254
2022204252
2023189251
2024173249
2025157248
2026142246
2027126244
2028110242
202994239
203077237
203160235
203242231
203323228
20344224
2035-16220
2036-36215
2037-57211
2038-78206
2039-100202
2040-122197
2041-144193
2042-166189
2043-189185
2044-211180
2045-234176
2046-257173
2047-280169
2048-303165
2049-327161
2050-351157
2051-375153
2052-398149
2053-423144
2054-447140
2055-472135
2056-496130
2057-522124
2058-548118
2059-574112
2060-601106
2061-62999
2062-65792
2063-68584
2064-71476
2065-74468
2066-77460
2067-80451
2068-83542
2069-86732
2070-89922
2071-93212
2072-9652
2073-1000-9
2074-1035-20
2075-1072-32
2076-1110-44
2077-1148-55
2078-1188-68
2079-1228-80
2080-1268-92
2081-1309-105
2082-1350-118
2083-1391-130
2084-1432-143
2085-1472-157
2086-1514-170
2087-1555-184
2088-1597-198
2089-1640-213
2090-1683-228
back