Proposed Provision: E2.18. Apply the combined OASDI payroll tax rate on covered earnings above $400,000 paid in 2027 and later, and tax all covered earnings once the current-law taxable maximum exceeds $400,000. Increase the computed level of the AWI for years after 2026 by amounts ranging from 0.5 percent for 2027 to 0.9 percent for 2048 and later. Credit the additional earnings taxed for benefit purposes by: (a) calculating a second average indexed monthly earnings ("AIME+") reflecting only earnings taxed above the current-law taxable maximum, (b) applying a 1 percent factor on this newly computed "AIME+" to develop a second component of the PIA, and (c) adding this second component to the current-law PIA.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2025169169
2026149149
2027131131
2028113121
202995112
203078104
20316095
20324387
20332679
2034972
2035-965
2036-2757
2037-4550
2038-6343
2039-8335
2040-10228
2041-12220
2042-14313
2043-1646
2044-185-1
2045-206-7
2046-228-14
2047-250-20
2048-272-26
2049-295-32
2050-317-38
2051-340-45
2052-363-52
2053-386-59
2054-409-67
2055-433-75
2056-457-83
2057-481-92
2058-505-101
2059-530-110
2060-556-121
2061-582-131
2062-609-142
2063-636-154
2064-664-165
2065-692-178
2066-721-190
2067-750-203
2068-780-217
2069-810-230
2070-840-244
2071-871-259
2072-903-274
2073-935-289
2074-967-305
2075-1000-321
2076-1035-338
2077-1070-355
2078-1106-373
2079-1142-391
2080-1180-410
2081-1219-429
2082-1258-448
2083-1298-467
2084-1338-487
2085-1380-507
2086-1423-527
2087-1466-548
2088-1510-569
2089-1554-589
2090-1599-610
2091-1643-630
2092-1687-650
2093-1731-670
2094-1774-690
2095-1816-709
2096-1858-728
2097-1900-747
2098-1941-766
2099-1982-784
2100-2022-802
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