Proposed Provision: E2.15. Apply OASDI 12.4 percent payroll tax rate on earnings above $300,000 starting in 2021, and tax all earnings once the current-law taxable maximum exceeds $300,000. 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 2020 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 3 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
202112.914.114.114.1
202212.914.214.214.2
202312.914.314.414.4
202413.014.414.614.6
202513.014.414.814.8
202613.114.615.015.0
202713.114.615.215.2
202813.214.715.415.4
202913.214.815.615.6
203013.214.915.815.8
203113.214.916.016.0
203213.215.016.116.1
203313.215.116.216.2
203413.215.116.316.3
203513.315.216.416.4
203613.315.316.516.5
203713.315.416.516.5
203813.315.516.616.6
203913.315.516.616.6
204013.315.616.616.6
204113.315.616.616.6
204213.315.616.616.6
204313.315.616.616.6
204413.315.616.516.6
204513.315.616.516.5
204613.315.616.516.5
204713.315.616.416.5
204813.315.616.416.5
204913.315.616.416.4
205013.315.616.416.4
205113.315.616.416.4
205213.315.616.416.4
205313.315.616.416.4
205413.315.616.416.5
205513.315.616.416.5
205613.315.616.416.5
205713.315.616.516.6
205813.315.616.516.6
205913.315.616.616.7
206013.315.616.616.7
206113.315.616.716.8
206213.315.716.716.8
206313.315.716.816.9
206413.315.716.816.9
206513.315.716.917.0
206613.315.717.017.1
206713.315.717.017.1
206813.315.717.117.2
206913.315.717.117.2
207013.315.717.217.3
207113.315.717.317.4
207213.315.717.317.4
207313.315.717.317.5
207413.415.717.417.5
207513.415.717.417.5
207613.415.717.517.6
207713.415.717.517.6
207813.415.717.517.6
207913.415.717.517.6
208013.415.717.517.6
208113.415.717.417.6
208213.415.717.417.5
208313.415.717.417.5
208413.415.717.417.5
208513.415.717.417.5
208613.415.717.317.5
208713.415.717.317.5
208813.415.717.317.5
208913.415.717.317.5
209013.415.717.417.5
209113.415.717.417.5
209213.415.717.417.6
209313.415.717.517.6
209413.415.717.517.7
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