Proposed Provision: Eliminate the taxable maximum for years 2018 and later (phased in 2012-2017), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that were taxed after 2011, using a secondary PIA formula. This secondary PIA formula uses: (1) an “AIME+” derived from annual earnings from each year after 2011 that were in excess of that year’s current-law taxable maximum; (2) a bend point equal to 134 percent higher of the monthly current-law taxable maximum; and (3) formula factors of 3 percent and 0.25 percent, respectively.
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Present Law |
Provision |
2011 | 353 | 353 |
2012 | 347 | 347 |
2013 | 341 | 343 |
2014 | 334 | 341 |
2015 | 328 | 341 |
2016 | 321 | 344 |
2017 | 314 | 348 |
2018 | 306 | 354 |
2019 | 296 | 359 |
2020 | 284 | 362 |
2021 | 272 | 364 |
2022 | 259 | 365 |
2023 | 245 | 365 |
2024 | 230 | 364 |
2025 | 214 | 363 |
2026 | 198 | 361 |
2027 | 181 | 358 |
2028 | 164 | 354 |
2029 | 145 | 350 |
2030 | 127 | 346 |
2031 | 107 | 341 |
2032 | 87 | 336 |
2033 | 67 | 331 |
2034 | 46 | 326 |
2035 | 25 | 321 |
2036 | 4 | 316 |
2037 | -18 | 311 |
2038 | -40 | 307 |
2039 | -62 | 302 |
2040 | -85 | 298 |
2041 | -108 | 294 |
2042 | -130 | 291 |
2043 | -153 | 287 |
2044 | -176 | 284 |
2045 | -200 | 281 |
2046 | -223 | 278 |
2047 | -247 | 274 |
2048 | -271 | 271 |
2049 | -295 | 268 |
2050 | -319 | 266 |
2051 | -343 | 263 |
2052 | -368 | 259 |
2053 | -393 | 256 |
2054 | -418 | 253 |
2055 | -443 | 249 |
2056 | -468 | 246 |
2057 | -494 | 242 |
2058 | -521 | 238 |
2059 | -548 | 234 |
2060 | -575 | 230 |
2061 | -602 | 226 |
2062 | -630 | 222 |
2063 | -659 | 217 |
2064 | -687 | 213 |
2065 | -716 | 208 |
2066 | -746 | 203 |
2067 | -775 | 198 |
2068 | -805 | 193 |
2069 | -835 | 188 |
2070 | -866 | 182 |
2071 | -897 | 176 |
2072 | -928 | 170 |
2073 | -960 | 164 |
2074 | -992 | 157 |
2075 | -1025 | 151 |
2076 | -1058 | 144 |
2077 | -1092 | 136 |
2078 | -1126 | 129 |
2079 | -1161 | 121 |
2080 | -1196 | 113 |
2081 | -1232 | 105 |
2082 | -1268 | 96 |
2083 | -1305 | 87 |
2084 | -1342 | 78 |
2085 | -1380 | 69 |
2086 | -1419 | 59 |
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