Proposed Provision: E2.16. Apply OASDI 12.4 percent payroll tax rate on earnings above $250,000 starting in 2024, and tax all earnings once the current-law taxable maximum exceeds $250,000. Increase the computed level of the SSA average wage index for years after 2023 by amounts ranging from 0.6 percent for 2024 to 0.9 percent for 2034 and later. 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 2023 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 Cost Rates and Income Rates
(as a percentage of taxable payroll)
| |
Income Rates |
Cost Rates |
| Year |
Current Law |
Provision |
Current Law |
Provision |
| 2023 | 13.3 | 13.3 | 14.5 | 14.5 |
| 2024 | 12.9 | 14.5 | 14.9 | 14.9 |
| 2025 | 13.0 | 14.7 | 15.0 | 15.0 |
| 2026 | 13.1 | 14.9 | 15.2 | 15.2 |
| 2027 | 13.1 | 15.0 | 15.4 | 15.4 |
| 2028 | 13.1 | 15.1 | 15.6 | 15.6 |
| 2029 | 13.2 | 15.2 | 15.7 | 15.7 |
| 2030 | 13.2 | 15.3 | 15.9 | 15.9 |
| 2031 | 13.2 | 15.5 | 16.0 | 16.0 |
| 2032 | 13.2 | 15.6 | 16.1 | 16.1 |
| 2033 | 13.2 | 15.7 | 16.3 | 16.3 |
| 2034 | 13.3 | 15.7 | 16.4 | 16.4 |
| 2035 | 13.3 | 15.8 | 16.5 | 16.5 |
| 2036 | 13.3 | 15.8 | 16.6 | 16.6 |
| 2037 | 13.3 | 15.8 | 16.6 | 16.7 |
| 2038 | 13.3 | 15.8 | 16.7 | 16.7 |
| 2039 | 13.3 | 15.8 | 16.7 | 16.8 |
| 2040 | 13.3 | 15.8 | 16.8 | 16.8 |
| 2041 | 13.3 | 15.8 | 16.8 | 16.8 |
| 2042 | 13.3 | 15.8 | 16.8 | 16.9 |
| 2043 | 13.3 | 15.8 | 16.8 | 16.9 |
| 2044 | 13.3 | 15.8 | 16.8 | 16.9 |
| 2045 | 13.3 | 15.8 | 16.9 | 16.9 |
| 2046 | 13.3 | 15.8 | 16.9 | 16.9 |
| 2047 | 13.3 | 15.8 | 16.9 | 17.0 |
| 2048 | 13.3 | 15.8 | 16.9 | 17.0 |
| 2049 | 13.3 | 15.8 | 17.0 | 17.0 |
| 2050 | 13.3 | 15.8 | 17.0 | 17.1 |
| 2051 | 13.3 | 15.8 | 17.0 | 17.1 |
| 2052 | 13.3 | 15.8 | 17.1 | 17.1 |
| 2053 | 13.3 | 15.9 | 17.1 | 17.2 |
| 2054 | 13.3 | 15.9 | 17.2 | 17.2 |
| 2055 | 13.3 | 15.9 | 17.2 | 17.3 |
| 2056 | 13.3 | 15.9 | 17.3 | 17.4 |
| 2057 | 13.4 | 15.9 | 17.4 | 17.5 |
| 2058 | 13.4 | 15.9 | 17.5 | 17.6 |
| 2059 | 13.4 | 15.9 | 17.5 | 17.6 |
| 2060 | 13.4 | 15.9 | 17.6 | 17.7 |
| 2061 | 13.4 | 15.9 | 17.7 | 17.8 |
| 2062 | 13.4 | 15.9 | 17.8 | 17.9 |
| 2063 | 13.4 | 15.9 | 17.8 | 17.9 |
| 2064 | 13.4 | 15.9 | 17.9 | 18.0 |
| 2065 | 13.4 | 15.9 | 17.9 | 18.1 |
| 2066 | 13.4 | 15.9 | 18.0 | 18.1 |
| 2067 | 13.4 | 15.9 | 18.1 | 18.2 |
| 2068 | 13.4 | 16.0 | 18.1 | 18.2 |
| 2069 | 13.4 | 16.0 | 18.2 | 18.3 |
| 2070 | 13.4 | 16.0 | 18.2 | 18.4 |
| 2071 | 13.4 | 16.0 | 18.3 | 18.4 |
| 2072 | 13.4 | 16.0 | 18.3 | 18.5 |
| 2073 | 13.4 | 16.0 | 18.4 | 18.5 |
| 2074 | 13.4 | 16.0 | 18.4 | 18.6 |
| 2075 | 13.4 | 16.0 | 18.5 | 18.6 |
| 2076 | 13.4 | 16.0 | 18.5 | 18.6 |
| 2077 | 13.4 | 16.0 | 18.5 | 18.7 |
| 2078 | 13.4 | 16.0 | 18.5 | 18.7 |
| 2079 | 13.4 | 16.0 | 18.5 | 18.6 |
| 2080 | 13.4 | 16.0 | 18.5 | 18.6 |
| 2081 | 13.4 | 16.0 | 18.4 | 18.6 |
| 2082 | 13.4 | 16.0 | 18.4 | 18.5 |
| 2083 | 13.4 | 16.0 | 18.3 | 18.5 |
| 2084 | 13.4 | 16.0 | 18.3 | 18.4 |
| 2085 | 13.4 | 16.0 | 18.2 | 18.4 |
| 2086 | 13.4 | 16.0 | 18.2 | 18.3 |
| 2087 | 13.4 | 16.0 | 18.1 | 18.2 |
| 2088 | 13.4 | 16.0 | 18.0 | 18.2 |
| 2089 | 13.4 | 16.0 | 18.0 | 18.1 |
| 2090 | 13.4 | 16.0 | 17.9 | 18.0 |
| 2091 | 13.4 | 16.0 | 17.8 | 18.0 |
| 2092 | 13.4 | 16.0 | 17.8 | 18.0 |
| 2093 | 13.4 | 16.0 | 17.8 | 17.9 |
| 2094 | 13.4 | 16.0 | 17.8 | 17.9 |
| 2095 | 13.4 | 16.0 | 17.7 | 17.9 |
| 2096 | 13.4 | 16.0 | 17.7 | 17.9 |
| 2097 | 13.4 | 16.0 | 17.8 | 17.9 |
| 2098 | 13.4 | 16.0 | 17.8 | 17.9 |
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