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 |
2012 | 340 | 340 |
2013 | 329 | 329 |
2014 | 315 | 318 |
2015 | 302 | 309 |
2016 | 290 | 304 |
2017 | 277 | 301 |
2018 | 265 | 300 |
2019 | 253 | 302 |
2020 | 240 | 304 |
2021 | 227 | 305 |
2022 | 212 | 304 |
2023 | 197 | 302 |
2024 | 181 | 300 |
2025 | 164 | 296 |
2026 | 147 | 292 |
2027 | 129 | 288 |
2028 | 110 | 283 |
2029 | 90 | 277 |
2030 | 70 | 271 |
2031 | 49 | 264 |
2032 | 27 | 257 |
2033 | 5 | 250 |
2034 | -18 | 242 |
2035 | -41 | 235 |
2036 | -65 | 227 |
2037 | -89 | 220 |
2038 | -114 | 212 |
2039 | -138 | 205 |
2040 | -163 | 198 |
2041 | -189 | 191 |
2042 | -215 | 184 |
2043 | -240 | 177 |
2044 | -266 | 170 |
2045 | -292 | 164 |
2046 | -319 | 157 |
2047 | -346 | 150 |
2048 | -373 | 144 |
2049 | -400 | 137 |
2050 | -428 | 131 |
2051 | -456 | 124 |
2052 | -484 | 117 |
2053 | -512 | 111 |
2054 | -540 | 104 |
2055 | -569 | 97 |
2056 | -598 | 90 |
2057 | -628 | 82 |
2058 | -657 | 75 |
2059 | -688 | 67 |
2060 | -719 | 59 |
2061 | -750 | 51 |
2062 | -782 | 43 |
2063 | -814 | 35 |
2064 | -847 | 27 |
2065 | -880 | 18 |
2066 | -913 | 10 |
2067 | -946 | 1 |
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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