Proposed Provision: Eliminate the taxable maximum for years 2020 and later (phased in 2014-2019), 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 2013, using a secondary PIA formula. This secondary PIA formula uses: (1) an “AIME+” derived from annual earnings from each year after 2013 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 |
2013 | 330 | 330 |
2014 | 315 | 315 |
2015 | 301 | 303 |
2016 | 286 | 293 |
2017 | 271 | 285 |
2018 | 257 | 281 |
2019 | 244 | 279 |
2020 | 231 | 279 |
2021 | 218 | 280 |
2022 | 204 | 280 |
2023 | 189 | 280 |
2024 | 173 | 278 |
2025 | 158 | 276 |
2026 | 142 | 273 |
2027 | 125 | 271 |
2028 | 108 | 268 |
2029 | 90 | 264 |
2030 | 71 | 260 |
2031 | 52 | 255 |
2032 | 31 | 250 |
2033 | 11 | 244 |
2034 | -11 | 238 |
2035 | -32 | 232 |
2036 | -55 | 226 |
2037 | -78 | 220 |
2038 | -101 | 214 |
2039 | -124 | 208 |
2040 | -148 | 202 |
2041 | -172 | 196 |
2042 | -196 | 191 |
2043 | -220 | 185 |
2044 | -245 | 180 |
2045 | -269 | 174 |
2046 | -294 | 169 |
2047 | -319 | 163 |
2048 | -345 | 158 |
2049 | -371 | 153 |
2050 | -397 | 147 |
2051 | -423 | 142 |
2052 | -449 | 136 |
2053 | -476 | 130 |
2054 | -502 | 124 |
2055 | -530 | 117 |
2056 | -557 | 110 |
2057 | -585 | 103 |
2058 | -613 | 96 |
2059 | -642 | 88 |
2060 | -671 | 81 |
2061 | -701 | 72 |
2062 | -732 | 64 |
2063 | -763 | 55 |
2064 | -794 | 46 |
2065 | -826 | 36 |
2066 | -859 | 27 |
2067 | -892 | 17 |
2068 | -925 | 6 |
2069 | -959 | -4 |
2070 | -993 | -15 |
2071 | -1028 | -27 |
2072 | -1064 | -38 |
2073 | -1101 | -50 |
2074 | -1139 | -62 |
2075 | -1178 | -75 |
2076 | -1217 | -88 |
2077 | -1258 | -101 |
2078 | -1299 | -114 |
2079 | -1340 | -127 |
2080 | -1382 | -140 |
2081 | -1424 | -154 |
2082 | -1466 | -168 |
2083 | -1508 | -182 |
2084 | -1550 | -196 |
2085 | -1592 | -211 |
2086 | -1635 | -225 |
2087 | -1678 | -241 |
2088 | -1722 | -256 |
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