Proposed Provision: E3.16. Beginning in 2025, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015 (about $589,500 in 2025), with the threshold wage-indexed after 2025. Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings taxed only between 2015 wage-indexed equivalents of $400,000 and $500,000, or about $589,500 and $736,800 in 2025 (with thresholds wage-indexed after 2025); 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 |
2023 | 204 | 204 |
2024 | 187 | 187 |
2025 | 168 | 168 |
2026 | 149 | 151 |
2027 | 131 | 135 |
2028 | 114 | 119 |
2029 | 96 | 103 |
2030 | 78 | 87 |
2031 | 60 | 71 |
2032 | 43 | 56 |
2033 | 25 | 39 |
2034 | 7 | 23 |
2035 | -12 | 7 |
2036 | -31 | -11 |
2037 | -51 | -28 |
2038 | -70 | -46 |
2039 | -91 | -64 |
2040 | -112 | -83 |
2041 | -133 | -102 |
2042 | -154 | -121 |
2043 | -176 | -141 |
2044 | -198 | -161 |
2045 | -220 | -180 |
2046 | -243 | -201 |
2047 | -265 | -221 |
2048 | -288 | -241 |
2049 | -311 | -262 |
2050 | -333 | -282 |
2051 | -357 | -303 |
2052 | -380 | -324 |
2053 | -403 | -345 |
2054 | -427 | -367 |
2055 | -450 | -388 |
2056 | -474 | -410 |
2057 | -498 | -431 |
2058 | -522 | -453 |
2059 | -547 | -476 |
2060 | -572 | -499 |
2061 | -597 | -522 |
2062 | -623 | -546 |
2063 | -650 | -571 |
2064 | -677 | -596 |
2065 | -705 | -621 |
2066 | -733 | -647 |
2067 | -762 | -674 |
2068 | -791 | -700 |
2069 | -820 | -727 |
2070 | -850 | -755 |
2071 | -880 | -783 |
2072 | -911 | -811 |
2073 | -942 | -840 |
2074 | -974 | -869 |
2075 | -1006 | -899 |
2076 | -1039 | -930 |
2077 | -1074 | -961 |
2078 | -1108 | -994 |
2079 | -1144 | -1027 |
2080 | -1181 | -1061 |
2081 | -1218 | -1095 |
2082 | -1256 | -1130 |
2083 | -1294 | -1165 |
2084 | -1333 | -1201 |
2085 | -1373 | -1238 |
2086 | -1413 | -1274 |
2087 | -1453 | -1311 |
2088 | -1494 | -1348 |
2089 | -1534 | -1385 |
2090 | -1574 | -1422 |
2091 | -1613 | -1458 |
2092 | -1651 | -1493 |
2093 | -1689 | -1528 |
2094 | -1726 | -1562 |
2095 | -1762 | -1595 |
2096 | -1798 | -1628 |
2097 | -1833 | -1660 |
2098 | -1868 | -1692 |
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