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
2023204204
2024187187
2025168168
2026149151
2027131135
2028114119
202996103
20307887
20316071
20324356
20332539
2034723
2035-127
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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