Proposed Provision: E3.16. Beginning in 2018, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015, with the threshold wage-indexed after 2018. Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings taxed only between 2015 wage-indexed equivalents of $400,000 and $500,000 (with thresholds wage-indexed after 2018); and (2) a formula factor of 2 percent on this newly computed "AIME+".

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

Year Present Law Provision
2016303303
2017293293
2018277277
2019262264
2020246251
2021231238
2022216225
2023200210
2024183195
2025165180
2026149165
2027132150
2028115135
202998119
203081104
20316489
20324673
20332757
2034840
2035-1123
2036-305
2037-50-12
2038-71-30
2039-91-49
2040-112-67
2041-133-86
2042-154-105
2043-176-123
2044-197-142
2045-218-161
2046-240-180
2047-262-199
2048-283-218
2049-305-238
2050-327-257
2051-349-276
2052-371-295
2053-393-315
2054-415-334
2055-437-354
2056-460-374
2057-482-394
2058-506-415
2059-529-436
2060-553-457
2061-578-479
2062-603-501
2063-628-524
2064-654-547
2065-680-570
2066-706-594
2067-733-618
2068-760-642
2069-788-667
2070-816-693
2071-845-718
2072-874-745
2073-905-772
2074-935-800
2075-967-829
2076-1000-858
2077-1033-888
2078-1068-919
2079-1102-950
2080-1138-982
2081-1173-1014
2082-1208-1045
2083-1243-1077
2084-1279-1109
2085-1314-1140
2086-1349-1172
2087-1384-1204
2088-1419-1236
2089-1455-1268
2090-1491-1301
2091-1528-1334
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