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Summary Measures and Graphs
Payroll Taxes (including maximum taxable)

Description of Proposed Provision:
Beginning in 2017, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015, with the threshold wage-indexed after 2017. 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 2015 wage-indexed equivalents of $400,000 and $500,000 (with thresholds wage-indexed after 2017); and (2) a formula factor of 2 percent on this newly computed "AIME+".

Estimates based on the intermediate assumptions of the 2015 Trustees Report

Summary Measures
Present Law
[percent of payroll]		 Change from present law
[percent of payroll]		 Shortfall Eliminated
Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year
-2.68 -4.65 0.32 0.34 12% 7%


graph of OASDI cost rates and income rates by year, under present law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under present law and provision. click on graph to view underlying data.
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Last reviewed or modified September 1, 2015