Detailed Single Year Tables
Description of Proposed Provision:
E2.4: Eliminate the taxable maximum for years 2029 and later (phased in 2023-2029), 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 2022 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $8,933 in 2023, indexed by wages after 2023; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.
Financial Estimates for the OASDI Trust Fund Program
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
2022 | 14.05 | 12.79 | -1.26 | 230 | 0.00 | 0.00 | 0.00 | ||
2023 | 14.31 | 13.44 | -0.87 | 211 | 0.00 | 0.40 | 0.40 | ||
2024 | 14.45 | 13.75 | -0.70 | 197 | -0.00 | 0.79 | 0.79 | ||
2025 | 14.66 | 14.13 | -0.52 | 185 | -0.00 | 1.17 | 1.17 | ||
2026 | 14.88 | 14.61 | -0.27 | 175 | -0.00 | 1.53 | 1.53 | ||
2027 | 15.10 | 14.98 | -0.12 | 167 | -0.00 | 1.88 | 1.88 | ||
2028 | 15.32 | 15.36 | 0.03 | 161 | -0.01 | 2.22 | 2.22 | ||
2029 | 15.52 | 15.72 | 0.20 | 157 | -0.01 | 2.54 | 2.55 | ||
2030 | 15.71 | 15.73 | 0.02 | 155 | -0.01 | 2.53 | 2.54 | ||
2031 | 15.89 | 15.74 | -0.16 | 152 | -0.01 | 2.50 | 2.52 | ||
2032 | 16.05 | 15.75 | -0.30 | 149 | -0.01 | 2.50 | 2.52 | ||
2033 | 16.19 | 15.76 | -0.43 | 145 | -0.02 | 2.51 | 2.52 | ||
2034 | 16.30 | 15.77 | -0.53 | 142 | -0.02 | 2.51 | 2.52 | ||
2035 | 16.40 | 15.78 | -0.62 | 139 | -0.02 | 2.51 | 2.53 | ||
2036 | 16.47 | 15.79 | -0.69 | 136 | -0.03 | 2.51 | 2.53 | ||
2037 | 16.55 | 15.79 | -0.75 | 132 | -0.03 | 2.51 | 2.54 | ||
2038 | 16.61 | 15.80 | -0.81 | 129 | -0.03 | 2.51 | 2.54 | ||
2039 | 16.65 | 15.81 | -0.85 | 125 | -0.03 | 2.51 | 2.54 | ||
2040 | 16.68 | 15.81 | -0.87 | 121 | -0.04 | 2.51 | 2.55 | ||
2041 | 16.70 | 15.81 | -0.89 | 117 | -0.04 | 2.51 | 2.55 | ||
2042 | 16.73 | 15.81 | -0.91 | 113 | -0.04 | 2.51 | 2.55 | ||
2043 | 16.74 | 15.82 | -0.93 | 108 | -0.04 | 2.51 | 2.55 | ||
2044 | 16.76 | 15.82 | -0.94 | 104 | -0.04 | 2.51 | 2.55 | ||
2045 | 16.78 | 15.82 | -0.96 | 99 | -0.04 | 2.51 | 2.56 | ||
2046 | 16.80 | 15.82 | -0.97 | 94 | -0.04 | 2.51 | 2.56 | ||
2047 | 16.82 | 15.83 | -0.99 | 90 | -0.04 | 2.52 | 2.56 | ||
2048 | 16.85 | 15.83 | -1.02 | 84 | -0.04 | 2.52 | 2.56 | ||
2049 | 16.88 | 15.83 | -1.04 | 79 | -0.04 | 2.52 | 2.56 | ||
2050 | 16.91 | 15.84 | -1.07 | 74 | -0.04 | 2.52 | 2.56 | ||
2051 | 16.94 | 15.84 | -1.10 | 68 | -0.04 | 2.52 | 2.56 | ||
2052 | 16.98 | 15.85 | -1.13 | 62 | -0.04 | 2.52 | 2.56 | ||
2053 | 17.02 | 15.85 | -1.17 | 56 | -0.03 | 2.52 | 2.56 | ||
2054 | 17.07 | 15.85 | -1.21 | 50 | -0.03 | 2.52 | 2.55 | ||
2055 | 17.12 | 15.86 | -1.26 | 43 | -0.03 | 2.52 | 2.55 | ||
2056 | 17.18 | 15.86 | -1.31 | 36 | -0.03 | 2.52 | 2.55 | ||
2057 | 17.24 | 15.87 | -1.37 | 29 | -0.02 | 2.53 | 2.55 | ||
2058 | 17.30 | 15.88 | -1.43 | 21 | -0.02 | 2.53 | 2.55 | ||
2059 | 17.37 | 15.88 | -1.49 | 13 | -0.02 | 2.53 | 2.54 | ||
2060 | 17.44 | 15.89 | -1.55 | 5 | -0.01 | 2.53 | 2.54 | ||
2061 | 17.50 | 15.89 | -1.61 | ---- | -0.01 | 2.53 | 2.54 | ||
2062 | 17.57 | 15.90 | -1.67 | ---- | -0.00 | 2.53 | 2.53 | ||
2063 | 17.63 | 15.91 | -1.72 | ---- | -0.00 | 2.53 | 2.53 | ||
2064 | 17.68 | 15.91 | -1.77 | ---- | 0.00 | 2.53 | 2.53 | ||
2065 | 17.74 | 15.92 | -1.82 | ---- | 0.01 | 2.53 | 2.53 | ||
2066 | 17.79 | 15.92 | -1.87 | ---- | 0.01 | 2.53 | 2.52 | ||
2067 | 17.85 | 15.93 | -1.92 | ---- | 0.02 | 2.54 | 2.52 | ||
2068 | 17.91 | 15.93 | -1.98 | ---- | 0.02 | 2.54 | 2.52 | ||
2069 | 17.97 | 15.94 | -2.03 | ---- | 0.02 | 2.54 | 2.51 | ||
2070 | 18.03 | 15.94 | -2.09 | ---- | 0.03 | 2.54 | 2.51 | ||
2071 | 18.09 | 15.95 | -2.14 | ---- | 0.03 | 2.54 | 2.51 | ||
2072 | 18.14 | 15.95 | -2.19 | ---- | 0.03 | 2.54 | 2.51 | ||
2073 | 18.20 | 15.96 | -2.24 | ---- | 0.04 | 2.54 | 2.51 | ||
2074 | 18.25 | 15.96 | -2.29 | ---- | 0.04 | 2.54 | 2.50 | ||
2075 | 18.29 | 15.96 | -2.33 | ---- | 0.04 | 2.54 | 2.50 | ||
2076 | 18.33 | 15.97 | -2.36 | ---- | 0.04 | 2.54 | 2.50 | ||
2077 | 18.36 | 15.97 | -2.38 | ---- | 0.05 | 2.54 | 2.50 | ||
2078 | 18.37 | 15.97 | -2.39 | ---- | 0.05 | 2.54 | 2.50 | ||
2079 | 18.36 | 15.97 | -2.39 | ---- | 0.05 | 2.55 | 2.50 | ||
2080 | 18.35 | 15.97 | -2.38 | ---- | 0.05 | 2.55 | 2.50 | ||
2081 | 18.33 | 15.97 | -2.35 | ---- | 0.05 | 2.55 | 2.50 | ||
2082 | 18.30 | 15.97 | -2.32 | ---- | 0.05 | 2.55 | 2.49 | ||
2083 | 18.26 | 15.97 | -2.29 | ---- | 0.05 | 2.55 | 2.49 | ||
2084 | 18.21 | 15.97 | -2.24 | ---- | 0.06 | 2.55 | 2.49 | ||
2085 | 18.16 | 15.97 | -2.19 | ---- | 0.06 | 2.55 | 2.49 | ||
2086 | 18.10 | 15.96 | -2.14 | ---- | 0.06 | 2.55 | 2.49 | ||
2087 | 18.04 | 15.96 | -2.08 | ---- | 0.06 | 2.55 | 2.49 | ||
2088 | 17.97 | 15.96 | -2.01 | ---- | 0.06 | 2.55 | 2.49 | ||
2089 | 17.91 | 15.95 | -1.95 | ---- | 0.06 | 2.55 | 2.49 | ||
2090 | 17.85 | 15.95 | -1.90 | ---- | 0.06 | 2.55 | 2.50 | ||
2091 | 17.80 | 15.95 | -1.85 | ---- | 0.06 | 2.55 | 2.50 | ||
2092 | 17.76 | 15.95 | -1.81 | ---- | 0.06 | 2.55 | 2.50 | ||
2093 | 17.73 | 15.94 | -1.79 | ---- | 0.06 | 2.55 | 2.50 | ||
2094 | 17.71 | 15.94 | -1.77 | ---- | 0.06 | 2.56 | 2.50 | ||
2095 | 17.70 | 15.94 | -1.76 | ---- | 0.06 | 2.56 | 2.50 | ||
2096 | 17.70 | 15.94 | -1.76 | ---- | 0.06 | 2.56 | 2.50 | ||
2097 | 17.71 | 15.95 | -1.76 | ---- | 0.06 | 2.56 | 2.50 |
Summarized Estimates
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
2022-2096 | 17.20% | 16.17% | -1.03% | 2060 | 0.00% | 2.39% | 2.39% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
Based on Intermediate Assumptions of the 2022 Trustees Report.