Proposed Provision: E2.15. Apply OASDI 12.4 percent payroll tax rate on earnings above $300,000 starting in 2025, and tax all earnings once the current-law taxable maximum exceeds $300,000. 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 3 percent on this newly computed "AIME+".
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Current Law |
Provision |
2023 | 204 | 204 |
2024 | 187 | 187 |
2025 | 168 | 168 |
2026 | 149 | 158 |
2027 | 131 | 150 |
2028 | 114 | 142 |
2029 | 96 | 135 |
2030 | 78 | 127 |
2031 | 60 | 120 |
2032 | 43 | 113 |
2033 | 25 | 106 |
2034 | 7 | 99 |
2035 | -12 | 94 |
2036 | -31 | 88 |
2037 | -51 | 83 |
2038 | -70 | 77 |
2039 | -91 | 72 |
2040 | -112 | 67 |
2041 | -133 | 62 |
2042 | -154 | 56 |
2043 | -176 | 51 |
2044 | -198 | 46 |
2045 | -220 | 40 |
2046 | -243 | 35 |
2047 | -265 | 29 |
2048 | -288 | 23 |
2049 | -311 | 17 |
2050 | -333 | 11 |
2051 | -357 | 4 |
2052 | -380 | -2 |
2053 | -403 | -9 |
2054 | -427 | -17 |
2055 | -450 | -24 |
2056 | -474 | -32 |
2057 | -498 | -40 |
2058 | -522 | -49 |
2059 | -547 | -58 |
2060 | -572 | -67 |
2061 | -597 | -77 |
2062 | -623 | -87 |
2063 | -650 | -98 |
2064 | -677 | -109 |
2065 | -705 | -121 |
2066 | -733 | -132 |
2067 | -762 | -144 |
2068 | -791 | -157 |
2069 | -820 | -170 |
2070 | -850 | -183 |
2071 | -880 | -196 |
2072 | -911 | -210 |
2073 | -942 | -224 |
2074 | -974 | -239 |
2075 | -1006 | -254 |
2076 | -1039 | -269 |
2077 | -1074 | -285 |
2078 | -1108 | -301 |
2079 | -1144 | -317 |
2080 | -1181 | -333 |
2081 | -1218 | -350 |
2082 | -1256 | -367 |
2083 | -1294 | -384 |
2084 | -1333 | -401 |
2085 | -1373 | -418 |
2086 | -1413 | -435 |
2087 | -1453 | -452 |
2088 | -1494 | -468 |
2089 | -1534 | -485 |
2090 | -1574 | -501 |
2091 | -1613 | -517 |
2092 | -1651 | -533 |
2093 | -1689 | -548 |
2094 | -1726 | -563 |
2095 | -1762 | -577 |
2096 | -1798 | -592 |
2097 | -1833 | -606 |
2098 | -1868 | -620 |
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