Proposed Provision: Beginning in 2015, apply 4 percent payroll tax rate on earnings above $400,000 in 2015, with the threshold wage-indexed after 2015. Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an AIME+ derived from annual earnings taxed only between $400,000 and $500,000 (with thresholds wage-indexed after 2015); and (2) a formula factor of 2 percent on this newly computed AIME+.

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

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201312.712.713.913.9
201412.812.814.014.0
201512.913.214.014.0
201612.913.213.913.9
201712.913.213.913.9
201812.913.313.913.9
201912.913.314.114.1
202013.013.314.314.3
202113.013.314.414.4
202213.013.314.714.7
202313.013.415.015.0
202413.113.415.215.2
202513.113.415.515.5
202613.113.415.715.7
202713.113.415.915.9
202813.113.416.116.1
202913.113.416.316.3
203013.113.516.516.5
203113.113.516.616.6
203213.113.516.816.7
203313.213.516.916.9
203413.213.516.916.9
203513.213.517.017.0
203613.213.517.017.0
203713.213.517.017.0
203813.213.517.017.0
203913.213.517.017.0
204013.213.517.017.0
204113.213.516.916.9
204213.213.516.916.9
204313.213.516.916.9
204413.213.516.816.8
204513.213.516.816.8
204613.213.516.816.8
204713.213.516.816.8
204813.213.516.816.8
204913.213.516.816.8
205013.213.516.816.8
205113.213.516.816.8
205213.213.516.816.8
205313.213.516.816.8
205413.213.516.916.9
205513.213.516.916.9
205613.213.517.016.9
205713.213.517.017.0
205813.213.517.017.0
205913.213.517.117.1
206013.213.517.117.1
206113.213.517.217.2
206213.213.517.217.2
206313.213.517.317.3
206413.213.517.317.3
206513.213.517.417.3
206613.213.517.417.4
206713.213.517.417.4
206813.213.517.517.5
206913.213.517.517.5
207013.213.617.617.6
207113.213.617.617.6
207213.213.617.717.6
207313.213.617.717.7
207413.213.617.717.7
207513.213.617.717.7
207613.213.617.717.7
207713.213.617.717.7
207813.213.617.717.7
207913.213.617.717.7
208013.213.617.817.7
208113.213.617.817.8
208213.213.617.817.8
208313.213.617.817.8
208413.213.617.917.9
208513.213.617.917.9
208613.213.618.018.0
208713.213.618.018.0
208813.213.618.118.1
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