Proposed Provision: Eliminate the taxable maximum for years 2018 and later (phased in 2012-2017), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum, using a secondary PIA formula with two new bend points (one at the current-law taxable maximum and one 134 percent higher than the current-law taxable maximum), and apply formula factors of 3 percent and 0.25 percent, respectively.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201112.512.513.313.3
201212.913.213.213.2
201312.913.513.213.2
201412.913.913.213.2
201512.914.213.213.2
201613.014.613.313.3
201713.015.013.513.5
201813.015.313.613.6
201913.015.413.913.9
202013.115.414.214.2
202113.115.414.514.5
202213.115.414.814.8
202313.115.415.115.1
202413.115.415.415.4
202513.115.515.715.7
202613.215.515.915.9
202713.215.516.116.1
202813.215.516.316.3
202913.215.516.516.5
203013.215.516.716.7
203113.215.516.816.8
203213.215.616.916.9
203313.215.616.916.9
203413.215.617.017.0
203513.215.617.017.0
203613.215.617.017.0
203713.215.617.017.1
203813.215.617.017.0
203913.215.617.017.0
204013.215.617.017.0
204113.215.616.916.9
204213.215.616.916.9
204313.215.616.816.9
204413.215.616.816.8
204513.215.616.816.8
204613.215.616.816.8
204713.215.616.716.8
204813.215.616.716.7
204913.215.616.716.7
205013.215.616.716.7
205113.215.616.716.7
205213.215.616.716.7
205313.215.616.716.7
205413.215.616.716.7
205513.315.616.716.7
205613.315.616.716.8
205713.315.616.816.8
205813.315.616.816.8
205913.315.616.816.8
206013.315.616.816.8
206113.315.616.816.8
206213.315.616.816.8
206313.315.616.816.9
206413.315.616.816.9
206513.315.616.916.9
206613.315.616.916.9
206713.315.616.916.9
206813.315.616.917.0
206913.315.617.017.0
207013.315.617.017.0
207113.315.617.017.1
207213.315.717.117.1
207313.315.717.117.1
207413.315.717.117.2
207513.315.717.217.2
207613.315.717.217.2
207713.315.717.217.3
207813.315.717.317.3
207913.315.717.317.3
208013.315.717.417.4
208113.315.717.417.4
208213.315.717.417.5
208313.315.717.517.5
208413.315.717.517.5
208513.315.717.617.6
208613.315.717.617.6
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