Proposed Provision: Apply OASDI payroll tax rate on earnings above $400,000 starting in 2017, and tax all earnings once the current-law taxable maximum exceeds $400,000. 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 2016 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 Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201512.812.814.114.1
201612.912.913.913.9
201712.913.913.913.9
201812.914.014.014.0
201913.014.014.114.1
202013.014.114.214.2
202113.014.114.314.3
202213.014.214.514.5
202313.014.214.714.7
202413.114.315.015.0
202513.114.315.215.2
202613.114.415.415.4
202713.114.415.615.6
202813.114.515.715.8
202913.114.515.915.9
203013.214.616.116.1
203113.214.616.216.2
203213.214.716.416.4
203313.214.716.516.5
203413.214.816.616.6
203513.214.916.616.6
203613.214.916.716.7
203713.215.016.716.7
203813.215.016.716.7
203913.215.116.716.7
204013.215.116.716.7
204113.215.216.716.7
204213.215.316.716.7
204313.215.316.616.7
204413.215.416.616.6
204513.215.516.616.6
204613.215.516.616.6
204713.215.516.616.6
204813.215.516.516.6
204913.215.616.516.6
205013.215.616.516.6
205113.215.616.616.6
205213.215.616.616.6
205313.215.616.616.6
205413.215.616.616.7
205513.215.616.716.7
205613.215.616.716.8
205713.215.616.816.8
205813.215.616.816.9
205913.215.616.916.9
206013.315.617.017.0
206113.315.617.017.0
206213.315.617.117.1
206313.315.617.117.1
206413.315.617.217.2
206513.315.617.217.2
206613.315.617.317.3
206713.315.617.317.4
206813.315.617.417.4
206913.315.617.417.5
207013.315.617.517.5
207113.315.617.617.6
207213.315.717.617.6
207313.315.717.617.7
207413.315.717.717.7
207513.315.717.717.7
207613.315.717.717.7
207713.315.717.717.7
207813.315.717.717.7
207913.315.717.717.7
208013.315.717.717.7
208113.315.717.717.8
208213.315.717.717.8
208313.315.717.717.8
208413.315.717.817.8
208513.315.717.817.8
208613.315.717.817.9
208713.315.717.917.9
208813.315.717.918.0
208913.315.718.018.0
209013.315.718.018.1
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