Proposed Provision: E2.14. Apply OASDI 12.4 percent payroll tax rate on earnings above $250,000 starting in 2025, and tax all earnings once the current-law taxable maximum exceeds $250,000. 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 2024 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
2023204204
2024187187
2025168168
2026149160
2027131153
2028114147
202996141
203078135
203160129
203243124
203325119
20347115
2035-12111
2036-31107
2037-51103
2038-7099
2039-9195
2040-11290
2041-13385
2042-15480
2043-17675
2044-19870
2045-22065
2046-24360
2047-26554
2048-28849
2049-31143
2050-33337
2051-35731
2052-38024
2053-40318
2054-42711
2055-4504
2056-474-4
2057-498-12
2058-522-20
2059-547-29
2060-572-38
2061-597-48
2062-623-58
2063-650-68
2064-677-79
2065-705-90
2066-733-101
2067-762-113
2068-791-125
2069-820-138
2070-850-150
2071-880-164
2072-911-177
2073-942-191
2074-974-205
2075-1006-219
2076-1039-234
2077-1074-249
2078-1108-265
2079-1144-280
2080-1181-296
2081-1218-312
2082-1256-328
2083-1294-345
2084-1333-361
2085-1373-377
2086-1413-394
2087-1453-410
2088-1494-426
2089-1534-442
2090-1574-457
2091-1613-472
2092-1651-487
2093-1689-502
2094-1726-516
2095-1762-530
2096-1798-543
2097-1833-557
2098-1868-571
back