Proposed Provision: Eliminate the taxable maximum for years 2019 and later (phased in 2013-2018), 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 2012, using a secondary PIA formula. This secondary PIA formula uses: (1) an “AIME+” derived from annual earnings from each year after 2012 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
2012340340
2013329329
2014315318
2015302309
2016290304
2017277301
2018265300
2019253302
2020240304
2021227305
2022212304
2023197302
2024181300
2025164296
2026147292
2027129288
2028110283
202990277
203070271
203149264
203227257
20335250
2034-18242
2035-41235
2036-65227
2037-89220
2038-114212
2039-138205
2040-163198
2041-189191
2042-215184
2043-240177
2044-266170
2045-292164
2046-319157
2047-346150
2048-373144
2049-400137
2050-428131
2051-456124
2052-484117
2053-512111
2054-540104
2055-56997
2056-59890
2057-62882
2058-65775
2059-68867
2060-71959
2061-75051
2062-78243
2063-81435
2064-84727
2065-88018
2066-91310
2067-9461
2068-980-8
2069-1014-17
2070-1049-27
2071-1084-36
2072-1120-46
2073-1156-57
2074-1193-67
2075-1230-78
2076-1268-89
2077-1307-100
2078-1346-111
2079-1385-123
2080-1425-135
2081-1465-147
2082-1505-159
2083-1547-172
2084-1588-185
2085-1631-198
2086-1673-212
2087-1717-226
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