Proposed Provision: Eliminate the taxable maximum in years 2020 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 2.48 percent in 2016, 4.96 percent in 2017, and so on, up to 12.40 percent in 2020. 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 2014 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 5 percent on this newly computed "AIME+".

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
201512.912.914.014.0
201612.913.414.014.0
201712.913.914.014.0
201812.914.414.014.0
201912.914.914.114.1
202013.015.314.314.3
202113.015.314.514.5
202213.015.314.714.7
202313.015.315.015.0
202413.115.415.315.3
202513.115.415.515.6
202613.115.415.815.8
202713.115.416.016.0
202813.115.416.216.3
202913.115.516.416.5
203013.115.516.616.6
203113.215.516.716.8
203213.215.516.916.9
203313.215.517.017.0
203413.215.517.017.1
203513.215.517.117.1
203613.215.517.117.2
203713.215.517.117.2
203813.215.517.117.2
203913.215.517.117.2
204013.215.517.117.2
204113.215.517.017.1
204213.215.517.017.1
204313.215.517.017.1
204413.215.517.017.1
204513.215.516.917.1
204613.215.516.917.1
204713.215.516.917.0
204813.215.516.917.0
204913.215.516.917.0
205013.215.616.917.0
205113.215.616.917.0
205213.215.616.917.1
205313.215.616.917.1
205413.215.617.017.1
205513.215.617.017.2
205613.215.617.117.2
205713.215.617.117.3
205813.215.617.217.3
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
207213.315.717.818.0
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
208013.315.717.918.1
208113.315.717.918.2
208213.315.717.918.2
208313.315.718.018.2
208413.315.718.018.2
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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