Proposed Provision: E2.16. Apply OASDI 12.4 percent payroll tax rate on earnings above $250,000 starting in 2024, 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 2023 by amounts ranging from 0.6 percent for 2024 to 0.9 percent for 2034 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 2023 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
2023204204
2024187187
2025168178
2026149170
2027131163
2028114157
202996150
203078144
203160138
203243133
203325128
20347123
2035-12119
2036-31115
2037-51111
2038-70107
2039-91102
2040-11297
2041-13392
2042-15487
2043-17681
2044-19876
2045-22071
2046-24365
2047-26559
2048-28853
2049-31147
2050-33340
2051-35734
2052-38027
2053-40320
2054-42712
2055-4505
2056-474-4
2057-498-12
2058-522-21
2059-547-30
2060-572-40
2061-597-50
2062-623-60
2063-650-71
2064-677-82
2065-705-94
2066-733-106
2067-762-118
2068-791-131
2069-820-144
2070-850-157
2071-880-170
2072-911-184
2073-942-199
2074-974-213
2075-1006-228
2076-1039-243
2077-1074-259
2078-1108-275
2079-1144-291
2080-1181-307
2081-1218-324
2082-1256-340
2083-1294-357
2084-1333-374
2085-1373-391
2086-1413-407
2087-1453-424
2088-1494-441
2089-1534-457
2090-1574-473
2091-1613-489
2092-1651-504
2093-1689-519
2094-1726-533
2095-1762-548
2096-1798-562
2097-1833-576
2098-1868-590
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