Proposed Provision: Eliminate the taxable maximum in years 2023 and later and apply a portion of the payroll tax rate to earnings above the current-law taxable maximum: 1.24 percent in 2014, 2.48 percent in 2015, and so on, up to 11.16 percent in 2022. Provide benefit credit for earnings above the current-law taxable maximum, adding a bend point at the current-law taxable maximum and applying a formula factor of 5 percent for AIME above this new bend point.

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

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201212.912.913.813.8
201312.812.814.014.0
201412.913.214.014.0
201513.013.414.014.0
201613.013.713.913.9
201713.014.013.913.9
201813.014.314.014.0
201913.114.514.114.1
202013.114.714.414.4
202113.115.014.714.7
202213.115.215.015.0
202313.115.515.315.3
202413.215.515.615.6
202513.215.515.915.9
202613.215.516.216.2
202713.215.516.416.5
202813.215.616.616.7
202913.215.616.816.9
203013.215.617.017.1
203113.315.617.117.3
203213.315.617.217.4
203313.315.617.317.5
203413.315.617.417.5
203513.315.617.417.6
203613.315.617.417.6
203713.315.617.417.6
203813.315.617.417.6
203913.315.617.417.6
204013.315.617.417.6
204113.315.617.317.5
204213.315.617.317.5
204313.315.617.217.5
204413.315.617.217.5
204513.315.717.217.4
204613.315.717.217.4
204713.315.717.117.4
204813.315.717.117.4
204913.315.717.117.4
205013.315.717.117.4
205113.315.717.117.4
205213.315.717.117.4
205313.315.717.117.4
205413.315.717.117.4
205513.315.717.117.4
205613.315.717.117.4
205713.315.717.117.5
205813.315.717.117.5
205913.315.717.117.5
206013.315.717.217.5
206113.315.717.217.5
206213.315.717.217.5
206313.315.717.217.5
206413.315.717.217.5
206513.315.717.217.5
206613.315.717.217.6
206713.315.717.217.6
206813.315.717.317.6
206913.315.717.317.6
207013.315.717.317.7
207113.315.717.417.7
207213.315.717.417.7
207313.315.717.417.8
207413.315.717.417.8
207513.315.717.517.8
207613.315.717.517.8
207713.315.717.517.9
207813.315.717.517.9
207913.315.717.617.9
208013.315.717.618.0
208113.315.817.618.0
208213.315.817.718.0
208313.315.817.718.1
208413.315.817.818.1
208513.315.817.818.2
208613.315.817.818.2
208713.315.817.918.2
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