Proposed Provision: E3.16. Beginning in 2020, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015 (about $462,300 in 2020), with the threshold wage-indexed after 2020. 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, or about $462,300 and $578,100 in 2020 (with thresholds wage-indexed after 2020); 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 |
Current Law |
Provision |
| 2018 | 288 | 288 |
| 2019 | 272 | 272 |
| 2020 | 256 | 256 |
| 2021 | 239 | 241 |
| 2022 | 223 | 227 |
| 2023 | 206 | 212 |
| 2024 | 188 | 196 |
| 2025 | 171 | 181 |
| 2026 | 154 | 165 |
| 2027 | 137 | 150 |
| 2028 | 120 | 135 |
| 2029 | 104 | 120 |
| 2030 | 86 | 104 |
| 2031 | 69 | 89 |
| 2032 | 51 | 73 |
| 2033 | 33 | 56 |
| 2034 | 14 | 39 |
| 2035 | -5 | 22 |
| 2036 | -25 | 4 |
| 2037 | -46 | -14 |
| 2038 | -67 | -33 |
| 2039 | -88 | -52 |
| 2040 | -110 | -72 |
| 2041 | -132 | -92 |
| 2042 | -154 | -112 |
| 2043 | -176 | -132 |
| 2044 | -199 | -152 |
| 2045 | -221 | -172 |
| 2046 | -244 | -192 |
| 2047 | -267 | -212 |
| 2048 | -289 | -233 |
| 2049 | -312 | -253 |
| 2050 | -335 | -273 |
| 2051 | -358 | -293 |
| 2052 | -381 | -314 |
| 2053 | -403 | -334 |
| 2054 | -426 | -355 |
| 2055 | -450 | -375 |
| 2056 | -473 | -396 |
| 2057 | -496 | -417 |
| 2058 | -520 | -438 |
| 2059 | -544 | -460 |
| 2060 | -569 | -482 |
| 2061 | -594 | -504 |
| 2062 | -619 | -527 |
| 2063 | -645 | -551 |
| 2064 | -671 | -574 |
| 2065 | -698 | -598 |
| 2066 | -725 | -623 |
| 2067 | -752 | -648 |
| 2068 | -780 | -673 |
| 2069 | -808 | -698 |
| 2070 | -837 | -725 |
| 2071 | -866 | -751 |
| 2072 | -896 | -778 |
| 2073 | -927 | -806 |
| 2074 | -958 | -835 |
| 2075 | -990 | -864 |
| 2076 | -1023 | -894 |
| 2077 | -1057 | -925 |
| 2078 | -1092 | -956 |
| 2079 | -1128 | -989 |
| 2080 | -1165 | -1022 |
| 2081 | -1202 | -1056 |
| 2082 | -1240 | -1090 |
| 2083 | -1278 | -1125 |
| 2084 | -1316 | -1159 |
| 2085 | -1354 | -1194 |
| 2086 | -1392 | -1228 |
| 2087 | -1430 | -1263 |
| 2088 | -1468 | -1297 |
| 2089 | -1505 | -1331 |
| 2090 | -1543 | -1365 |
| 2091 | -1580 | -1399 |
| 2092 | -1618 | -1433 |
| 2093 | -1655 | -1467 |
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