Proposed Provision: E2.16. Apply OASDI 12.4 percent payroll tax rate on earnings above $250,000 starting in 2023, and tax all earnings once the current-law taxable maximum exceeds $250,000. Increase the computed level of the SSA average wage index for years after 2022 by amounts ranging from 0.7 percent for 2023 to 0.9 percent for 2035 and later. 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 2022 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
2022230230
2023211211
2024194207
2025177202
2026160197
2027143192
2028126187
2029109181
203091176
203174170
203257165
203339160
203421156
20353152
2036-16149
2037-35145
2038-54141
2039-74137
2040-95133
2041-116128
2042-137124
2043-158119
2044-180114
2045-202109
2046-224104
2047-24699
2048-26893
2049-29188
2050-31382
2051-33676
2052-35969
2053-38362
2054-40656
2055-43048
2056-45341
2057-47733
2058-50125
2059-52517
2060-5508
2061-575-1
2062-601-11
2063-627-21
2064-654-31
2065-681-41
2066-708-52
2067-736-63
2068-764-74
2069-792-86
2070-821-98
2071-850-110
2072-880-123
2073-910-136
2074-940-149
2075-971-162
2076-1003-176
2077-1036-190
2078-1069-205
2079-1104-219
2080-1139-234
2081-1175-250
2082-1212-265
2083-1249-280
2084-1286-295
2085-1324-311
2086-1363-326
2087-1402-341
2088-1442-357
2089-1481-372
2090-1520-386
2091-1558-401
2092-1595-415
2093-1632-428
2094-1668-442
2095-1703-455
2096-1738-468
2097-1773-481
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