Detailed Single Year Tables
Description of 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.
Financial Estimates for the OASDI Trust Fund Program
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
2023 | 14.53 | 13.29 | -1.24 | 204 | 0.00 | 0.00 | 0.00 | ||
2024 | 14.87 | 13.22 | -1.65 | 187 | 0.00 | 0.33 | 0.33 | ||
2025 | 15.04 | 13.66 | -1.38 | 170 | -0.00 | 0.69 | 0.69 | ||
2026 | 15.23 | 14.13 | -1.10 | 156 | -0.00 | 1.05 | 1.05 | ||
2027 | 15.38 | 14.50 | -0.88 | 144 | -0.00 | 1.40 | 1.41 | ||
2028 | 15.55 | 14.89 | -0.66 | 135 | -0.00 | 1.76 | 1.76 | ||
2029 | 15.72 | 15.27 | -0.45 | 128 | -0.00 | 2.11 | 2.11 | ||
2030 | 15.87 | 15.65 | -0.22 | 122 | -0.00 | 2.46 | 2.47 | ||
2031 | 16.00 | 15.71 | -0.29 | 119 | -0.01 | 2.49 | 2.50 | ||
2032 | 16.14 | 15.74 | -0.40 | 115 | -0.01 | 2.50 | 2.51 | ||
2033 | 16.26 | 15.75 | -0.51 | 111 | -0.01 | 2.50 | 2.51 | ||
2034 | 16.37 | 15.76 | -0.61 | 107 | -0.01 | 2.50 | 2.52 | ||
2035 | 16.46 | 15.77 | -0.69 | 104 | -0.02 | 2.50 | 2.52 | ||
2036 | 16.54 | 15.78 | -0.76 | 100 | -0.02 | 2.50 | 2.52 | ||
2037 | 16.61 | 15.79 | -0.83 | 96 | -0.02 | 2.50 | 2.53 | ||
2038 | 16.67 | 15.79 | -0.88 | 92 | -0.03 | 2.50 | 2.53 | ||
2039 | 16.72 | 15.80 | -0.92 | 88 | -0.03 | 2.51 | 2.54 | ||
2040 | 16.75 | 15.80 | -0.95 | 83 | -0.03 | 2.51 | 2.54 | ||
2041 | 16.77 | 15.81 | -0.96 | 78 | -0.04 | 2.51 | 2.54 | ||
2042 | 16.78 | 15.81 | -0.97 | 73 | -0.04 | 2.51 | 2.54 | ||
2043 | 16.79 | 15.81 | -0.98 | 68 | -0.04 | 2.51 | 2.55 | ||
2044 | 16.81 | 15.81 | -0.99 | 63 | -0.04 | 2.51 | 2.55 | ||
2045 | 16.82 | 15.82 | -1.00 | 58 | -0.04 | 2.51 | 2.55 | ||
2046 | 16.84 | 15.82 | -1.02 | 52 | -0.04 | 2.51 | 2.55 | ||
2047 | 16.86 | 15.82 | -1.04 | 47 | -0.04 | 2.51 | 2.55 | ||
2048 | 16.88 | 15.83 | -1.06 | 41 | -0.04 | 2.51 | 2.55 | ||
2049 | 16.91 | 15.83 | -1.08 | 35 | -0.04 | 2.51 | 2.55 | ||
2050 | 16.95 | 15.83 | -1.11 | 29 | -0.04 | 2.51 | 2.55 | ||
2051 | 16.98 | 15.84 | -1.14 | 23 | -0.04 | 2.51 | 2.55 | ||
2052 | 17.02 | 15.84 | -1.18 | 17 | -0.04 | 2.51 | 2.55 | ||
2053 | 17.07 | 15.85 | -1.22 | 10 | -0.04 | 2.51 | 2.55 | ||
2054 | 17.13 | 15.85 | -1.28 | 3 | -0.04 | 2.52 | 2.55 | ||
2055 | 17.20 | 15.86 | -1.34 | ---- | -0.03 | 2.52 | 2.55 | ||
2056 | 17.27 | 15.86 | -1.41 | ---- | -0.03 | 2.52 | 2.55 | ||
2057 | 17.35 | 15.87 | -1.48 | ---- | -0.03 | 2.52 | 2.55 | ||
2058 | 17.43 | 15.88 | -1.55 | ---- | -0.03 | 2.52 | 2.55 | ||
2059 | 17.52 | 15.89 | -1.63 | ---- | -0.02 | 2.52 | 2.54 | ||
2060 | 17.60 | 15.89 | -1.70 | ---- | -0.02 | 2.52 | 2.54 | ||
2061 | 17.67 | 15.90 | -1.77 | ---- | -0.02 | 2.52 | 2.54 | ||
2062 | 17.75 | 15.91 | -1.84 | ---- | -0.01 | 2.52 | 2.54 | ||
2063 | 17.81 | 15.91 | -1.90 | ---- | -0.01 | 2.52 | 2.53 | ||
2064 | 17.88 | 15.92 | -1.96 | ---- | -0.01 | 2.52 | 2.53 | ||
2065 | 17.94 | 15.93 | -2.02 | ---- | -0.00 | 2.53 | 2.53 | ||
2066 | 18.01 | 15.93 | -2.07 | ---- | 0.00 | 2.53 | 2.52 | ||
2067 | 18.07 | 15.94 | -2.13 | ---- | 0.01 | 2.53 | 2.52 | ||
2068 | 18.13 | 15.94 | -2.18 | ---- | 0.01 | 2.53 | 2.52 | ||
2069 | 18.19 | 15.95 | -2.24 | ---- | 0.01 | 2.53 | 2.52 | ||
2070 | 18.25 | 15.95 | -2.29 | ---- | 0.02 | 2.53 | 2.51 | ||
2071 | 18.30 | 15.96 | -2.34 | ---- | 0.02 | 2.53 | 2.51 | ||
2072 | 18.36 | 15.96 | -2.39 | ---- | 0.02 | 2.53 | 2.51 | ||
2073 | 18.41 | 15.97 | -2.44 | ---- | 0.03 | 2.53 | 2.51 | ||
2074 | 18.46 | 15.97 | -2.48 | ---- | 0.03 | 2.53 | 2.50 | ||
2075 | 18.50 | 15.98 | -2.52 | ---- | 0.03 | 2.53 | 2.50 | ||
2076 | 18.52 | 15.98 | -2.54 | ---- | 0.03 | 2.54 | 2.50 | ||
2077 | 18.54 | 15.98 | -2.56 | ---- | 0.04 | 2.54 | 2.50 | ||
2078 | 18.54 | 15.98 | -2.56 | ---- | 0.04 | 2.54 | 2.50 | ||
2079 | 18.53 | 15.98 | -2.55 | ---- | 0.04 | 2.54 | 2.50 | ||
2080 | 18.51 | 15.98 | -2.52 | ---- | 0.04 | 2.54 | 2.50 | ||
2081 | 18.48 | 15.98 | -2.49 | ---- | 0.04 | 2.54 | 2.49 | ||
2082 | 18.44 | 15.98 | -2.46 | ---- | 0.05 | 2.54 | 2.49 | ||
2083 | 18.39 | 15.98 | -2.41 | ---- | 0.05 | 2.54 | 2.49 | ||
2084 | 18.34 | 15.98 | -2.36 | ---- | 0.05 | 2.54 | 2.49 | ||
2085 | 18.28 | 15.97 | -2.30 | ---- | 0.05 | 2.54 | 2.49 | ||
2086 | 18.21 | 15.97 | -2.24 | ---- | 0.05 | 2.54 | 2.49 | ||
2087 | 18.14 | 15.97 | -2.17 | ---- | 0.05 | 2.54 | 2.49 | ||
2088 | 18.07 | 15.96 | -2.11 | ---- | 0.05 | 2.54 | 2.49 | ||
2089 | 18.00 | 15.96 | -2.04 | ---- | 0.05 | 2.54 | 2.49 | ||
2090 | 17.94 | 15.96 | -1.99 | ---- | 0.05 | 2.54 | 2.49 | ||
2091 | 17.89 | 15.95 | -1.94 | ---- | 0.05 | 2.54 | 2.49 | ||
2092 | 17.85 | 15.95 | -1.90 | ---- | 0.05 | 2.54 | 2.49 | ||
2093 | 17.82 | 15.95 | -1.87 | ---- | 0.05 | 2.54 | 2.49 | ||
2094 | 17.80 | 15.95 | -1.86 | ---- | 0.05 | 2.55 | 2.49 | ||
2095 | 17.80 | 15.95 | -1.85 | ---- | 0.05 | 2.55 | 2.49 | ||
2096 | 17.80 | 15.95 | -1.85 | ---- | 0.05 | 2.55 | 2.49 | ||
2097 | 17.81 | 15.95 | -1.85 | ---- | 0.05 | 2.55 | 2.49 | ||
2098 | 17.82 | 15.95 | -1.87 | ---- | 0.05 | 2.55 | 2.50 |
Summarized Estimates
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
2023-2097 | 17.38% | 16.14% | -1.24% | 2054 | -0.00% | 2.37% | 2.37% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2023 Trustees Report.