Proposed Provision: E2.4. Eliminate the taxable maximum for years 2030 and later (phased in 2024-2030), 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 2023 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $9,360 in 2024, indexed by wages after 2024; 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
2023204204
2024187187
2025168170
2026149156
2027131144
2028114135
202996128
203078122
203160119
203243115
203325111
20347107
2035-12104
2036-31100
2037-5196
2038-7092
2039-9188
2040-11283
2041-13378
2042-15473
2043-17668
2044-19863
2045-22058
2046-24352
2047-26547
2048-28841
2049-31135
2050-33329
2051-35723
2052-38017
2053-40310
2054-4273
2055-450-4
2056-474-11
2057-498-19
2058-522-28
2059-547-36
2060-572-45
2061-597-55
2062-623-65
2063-650-75
2064-677-86
2065-705-97
2066-733-108
2067-762-120
2068-791-132
2069-820-144
2070-850-157
2071-880-170
2072-911-183
2073-942-197
2074-974-211
2075-1006-225
2076-1039-240
2077-1074-255
2078-1108-271
2079-1144-286
2080-1181-302
2081-1218-318
2082-1256-334
2083-1294-350
2084-1333-367
2085-1373-383
2086-1413-399
2087-1453-415
2088-1494-431
2089-1534-447
2090-1574-462
2091-1613-478
2092-1651-492
2093-1689-507
2094-1726-521
2095-1762-535
2096-1798-548
2097-1833-562
2098-1868-575
back