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
2021253253
2022231231
2023214216
2024196203
2025178192
2026159182
2027141174
2028122167
2029104161
203085155
203166149
203246142
203327136
20347129
2035-13123
2036-33118
2037-54112
2038-76106
2039-9799
2040-11993
2041-14287
2042-16580
2043-18874
2044-21167
2045-23560
2046-25854
2047-28247
2048-30640
2049-33033
2050-35426
2051-37819
2052-40312
2053-4274
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
back