Proposed Provision: E2.11. Eliminate the taxable maximum in years 2025 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 2.48 percent in 2021, 4.96 percent in 2022, and so on, up to 12.40 percent in 2025. 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 2020 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 Current Law Provision Current Law Provision
201912.812.813.913.9
202012.912.913.913.9
202112.913.414.114.1
202212.913.914.214.2
202312.914.414.414.4
202413.014.814.614.6
202513.015.314.814.8
202613.115.415.015.0
202713.115.415.215.2
202813.215.515.415.4
202913.215.515.615.6
203013.215.515.815.8
203113.215.516.016.0
203213.215.516.116.1
203313.215.616.216.3
203413.215.616.316.4
203513.315.616.416.4
203613.315.616.516.5
203713.315.616.516.6
203813.315.616.616.6
203913.315.616.616.7
204013.315.616.616.7
204113.315.616.616.7
204213.315.616.616.7
204313.315.616.616.6
204413.315.616.516.6
204513.315.616.516.6
204613.315.616.516.6
204713.315.616.416.5
204813.315.616.416.5
204913.315.616.416.5
205013.315.616.416.5
205113.315.616.416.5
205213.315.616.416.5
205313.315.616.416.5
205413.315.616.416.5
205513.315.616.416.6
205613.315.616.416.6
205713.315.616.516.7
205813.315.616.516.7
205913.315.616.616.8
206013.315.716.616.8
206113.315.716.716.9
206213.315.716.716.9
206313.315.716.817.0
206413.315.716.817.1
206513.315.716.917.1
206613.315.717.017.2
206713.315.717.017.2
206813.315.717.117.3
206913.315.717.117.4
207013.315.717.217.4
207113.315.717.317.5
207213.315.717.317.6
207313.315.717.317.6
207413.415.717.417.6
207513.415.717.417.7
207613.415.717.517.7
207713.415.717.517.7
207813.415.717.517.7
207913.415.717.517.7
208013.415.717.517.7
208113.415.717.417.7
208213.415.717.417.7
208313.415.717.417.7
208413.415.717.417.6
208513.415.717.417.6
208613.415.717.317.6
208713.415.717.317.6
208813.415.717.317.6
208913.415.717.317.6
209013.415.717.417.6
209113.415.817.417.7
209213.415.817.417.7
209313.415.817.517.8
209413.415.817.517.8
back