Proposed Provision: E2.4. Eliminate the taxable maximum for years 2026 and later (phased in 2020-2026), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2019 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to 134 percent of the monthly current-law taxable maximum; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Current Law |
Provision |
2019 | 273 | 273 |
2020 | 260 | 260 |
2021 | 245 | 247 |
2022 | 229 | 236 |
2023 | 213 | 227 |
2024 | 197 | 219 |
2025 | 180 | 213 |
2026 | 163 | 208 |
2027 | 147 | 205 |
2028 | 130 | 202 |
2029 | 114 | 199 |
2030 | 97 | 195 |
2031 | 80 | 192 |
2032 | 63 | 188 |
2033 | 46 | 184 |
2034 | 28 | 181 |
2035 | 10 | 178 |
2036 | -9 | 174 |
2037 | -28 | 170 |
2038 | -47 | 165 |
2039 | -67 | 161 |
2040 | -87 | 156 |
2041 | -108 | 152 |
2042 | -129 | 147 |
2043 | -150 | 143 |
2044 | -171 | 139 |
2045 | -192 | 135 |
2046 | -213 | 131 |
2047 | -234 | 127 |
2048 | -255 | 123 |
2049 | -276 | 119 |
2050 | -297 | 115 |
2051 | -318 | 112 |
2052 | -338 | 108 |
2053 | -359 | 104 |
2054 | -380 | 100 |
2055 | -401 | 96 |
2056 | -422 | 92 |
2057 | -444 | 87 |
2058 | -465 | 83 |
2059 | -487 | 78 |
2060 | -509 | 72 |
2061 | -531 | 67 |
2062 | -554 | 61 |
2063 | -577 | 55 |
2064 | -601 | 48 |
2065 | -625 | 42 |
2066 | -649 | 35 |
2067 | -674 | 27 |
2068 | -699 | 19 |
2069 | -724 | 11 |
2070 | -749 | 3 |
2071 | -776 | -6 |
2072 | -802 | -15 |
2073 | -830 | -24 |
2074 | -857 | -34 |
2075 | -885 | -44 |
2076 | -914 | -54 |
2077 | -944 | -64 |
2078 | -975 | -75 |
2079 | -1007 | -85 |
2080 | -1039 | -96 |
2081 | -1072 | -107 |
2082 | -1106 | -118 |
2083 | -1139 | -129 |
2084 | -1173 | -140 |
2085 | -1207 | -151 |
2086 | -1242 | -162 |
2087 | -1275 | -172 |
2088 | -1309 | -183 |
2089 | -1342 | -194 |
2090 | -1375 | -205 |
2091 | -1407 | -216 |
2092 | -1439 | -227 |
2093 | -1471 | -238 |
2094 | -1503 | -249 |
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