Proposed Provision: E2.4. Eliminate the taxable maximum for years 2028 and later (phased in 2022-2028), 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 2021 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 |
Current Law |
Provision |
2021 | 253 | 253 |
2022 | 231 | 231 |
2023 | 214 | 216 |
2024 | 196 | 203 |
2025 | 178 | 192 |
2026 | 159 | 182 |
2027 | 141 | 174 |
2028 | 122 | 167 |
2029 | 104 | 161 |
2030 | 85 | 155 |
2031 | 66 | 149 |
2032 | 46 | 142 |
2033 | 27 | 136 |
2034 | 7 | 129 |
2035 | -13 | 123 |
2036 | -33 | 118 |
2037 | -54 | 112 |
2038 | -76 | 106 |
2039 | -97 | 99 |
2040 | -119 | 93 |
2041 | -142 | 87 |
2042 | -165 | 80 |
2043 | -188 | 74 |
2044 | -211 | 67 |
2045 | -235 | 60 |
2046 | -258 | 54 |
2047 | -282 | 47 |
2048 | -306 | 40 |
2049 | -330 | 33 |
2050 | -354 | 26 |
2051 | -378 | 19 |
2052 | -403 | 12 |
2053 | -427 | 4 |
2054 | -452 | -3 |
2055 | -477 | -11 |
2056 | -502 | -19 |
2057 | -527 | -28 |
2058 | -552 | -36 |
2059 | -578 | -45 |
2060 | -604 | -54 |
2061 | -630 | -63 |
2062 | -657 | -73 |
2063 | -684 | -83 |
2064 | -712 | -93 |
2065 | -740 | -103 |
2066 | -768 | -114 |
2067 | -796 | -125 |
2068 | -825 | -137 |
2069 | -855 | -148 |
2070 | -884 | -160 |
2071 | -914 | -173 |
2072 | -945 | -185 |
2073 | -976 | -198 |
2074 | -1007 | -211 |
2075 | -1039 | -225 |
2076 | -1071 | -239 |
2077 | -1105 | -253 |
2078 | -1139 | -268 |
2079 | -1175 | -283 |
2080 | -1211 | -298 |
2081 | -1248 | -313 |
2082 | -1286 | -328 |
2083 | -1324 | -344 |
2084 | -1363 | -360 |
2085 | -1403 | -375 |
2086 | -1443 | -391 |
2087 | -1483 | -406 |
2088 | -1524 | -422 |
2089 | -1564 | -437 |
2090 | -1604 | -452 |
2091 | -1643 | -466 |
2092 | -1681 | -480 |
2093 | -1718 | -493 |
2094 | -1754 | -507 |
2095 | -1789 | -520 |
2096 | -1825 | -533 |
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