Proposed Provision: Eliminate the taxable maximum in years 2015 and later, and apply full 12.4 percent payroll tax rate to all earnings. 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 3 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
201412.712.714.014.0
201512.915.214.014.0
201612.915.314.014.0
201712.915.314.014.0
201812.915.314.014.0
201912.915.314.114.2
202013.015.314.314.3
202113.015.314.514.5
202213.015.314.714.8
202313.015.315.015.1
202413.115.415.315.3
202513.115.415.515.6
202613.115.415.815.9
202713.115.416.016.1
202813.115.416.216.4
202913.115.516.416.6
203013.115.516.616.7
203113.215.516.716.9
203213.215.516.917.0
203313.215.517.017.1
203413.215.517.017.2
203513.215.517.117.3
203613.215.517.117.3
203713.215.517.117.3
203813.215.517.117.3
203913.215.517.117.3
204013.215.517.117.3
204113.215.517.017.3
204213.215.517.017.2
204313.215.517.017.2
204413.215.617.017.2
204513.215.616.917.2
204613.215.616.917.2
204713.215.616.917.1
204813.215.616.917.1
204913.215.616.917.1
205013.215.616.917.1
205113.215.616.917.1
205213.215.616.917.1
205313.215.616.917.2
205413.215.617.017.2
205513.215.617.017.2
205613.215.617.117.3
205713.215.617.117.3
205813.215.617.217.4
205913.215.617.217.4
206013.215.617.317.5
206113.215.617.317.5
206213.215.617.417.6
206313.215.617.417.6
206413.215.617.417.7
206513.215.617.517.7
206613.215.617.517.8
206713.315.617.617.8
206813.315.617.617.9
206913.315.617.717.9
207013.315.617.718.0
207113.315.717.818.0
207213.315.717.818.1
207313.315.717.818.1
207413.315.717.918.1
207513.315.717.918.1
207613.315.717.918.1
207713.315.717.918.1
207813.315.717.918.1
207913.315.717.918.1
208013.315.717.918.2
208113.315.717.918.2
208213.315.717.918.2
208313.315.718.018.2
208413.315.718.018.3
208513.315.718.018.3
208613.315.718.118.3
208713.315.718.118.4
208813.315.718.218.4
208913.315.718.218.5
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