Proposed Provision: E2.13. Apply OASDI 12.4 percent payroll tax rate on earnings above $400,000 starting in 2023, and tax all earnings once the current-law taxable maximum exceeds $400,000. 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 2022 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 2 percent on this newly computed "AIME+".
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Current Law |
Provision |
2021 | 253 | 253 |
2022 | 231 | 231 |
2023 | 214 | 214 |
2024 | 196 | 203 |
2025 | 178 | 193 |
2026 | 159 | 181 |
2027 | 141 | 170 |
2028 | 122 | 159 |
2029 | 104 | 147 |
2030 | 85 | 135 |
2031 | 66 | 123 |
2032 | 46 | 111 |
2033 | 27 | 99 |
2034 | 7 | 88 |
2035 | -13 | 77 |
2036 | -33 | 66 |
2037 | -54 | 55 |
2038 | -76 | 44 |
2039 | -97 | 33 |
2040 | -119 | 23 |
2041 | -142 | 12 |
2042 | -165 | 2 |
2043 | -188 | -8 |
2044 | -211 | -18 |
2045 | -235 | -28 |
2046 | -258 | -38 |
2047 | -282 | -47 |
2048 | -306 | -55 |
2049 | -330 | -64 |
2050 | -354 | -72 |
2051 | -378 | -80 |
2052 | -403 | -88 |
2053 | -427 | -97 |
2054 | -452 | -105 |
2055 | -477 | -114 |
2056 | -502 | -122 |
2057 | -527 | -131 |
2058 | -552 | -141 |
2059 | -578 | -150 |
2060 | -604 | -159 |
2061 | -630 | -169 |
2062 | -657 | -180 |
2063 | -684 | -190 |
2064 | -712 | -201 |
2065 | -740 | -212 |
2066 | -768 | -224 |
2067 | -796 | -235 |
2068 | -825 | -247 |
2069 | -855 | -259 |
2070 | -884 | -272 |
2071 | -914 | -285 |
2072 | -945 | -298 |
2073 | -976 | -311 |
2074 | -1007 | -325 |
2075 | -1039 | -339 |
2076 | -1071 | -354 |
2077 | -1105 | -369 |
2078 | -1139 | -384 |
2079 | -1175 | -400 |
2080 | -1211 | -416 |
2081 | -1248 | -432 |
2082 | -1286 | -449 |
2083 | -1324 | -465 |
2084 | -1363 | -482 |
2085 | -1403 | -499 |
2086 | -1443 | -516 |
2087 | -1483 | -532 |
2088 | -1524 | -549 |
2089 | -1564 | -565 |
2090 | -1604 | -581 |
2091 | -1643 | -597 |
2092 | -1681 | -612 |
2093 | -1718 | -626 |
2094 | -1754 | -640 |
2095 | -1789 | -654 |
2096 | -1825 | -668 |
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