Proposed Provision: E2.4. Eliminate the taxable maximum for years 2032 and later (phased in 2026-2032), and apply full 12.4 percent payroll tax rate to all earnings. 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 2025 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $10,245 in 2026, indexed by wages after 2026; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Current Law |
Provision |
2025 | 169 | 169 |
2026 | 149 | 149 |
2027 | 131 | 133 |
2028 | 113 | 120 |
2029 | 95 | 109 |
2030 | 78 | 100 |
2031 | 60 | 93 |
2032 | 43 | 88 |
2033 | 26 | 86 |
2034 | 9 | 84 |
2035 | -9 | 82 |
2036 | -27 | 79 |
2037 | -45 | 76 |
2038 | -63 | 73 |
2039 | -83 | 69 |
2040 | -102 | 65 |
2041 | -122 | 61 |
2042 | -143 | 57 |
2043 | -164 | 53 |
2044 | -185 | 48 |
2045 | -206 | 43 |
2046 | -228 | 38 |
2047 | -250 | 33 |
2048 | -272 | 28 |
2049 | -295 | 23 |
2050 | -317 | 17 |
2051 | -340 | 11 |
2052 | -363 | 5 |
2053 | -386 | -2 |
2054 | -409 | -9 |
2055 | -433 | -16 |
2056 | -457 | -24 |
2057 | -481 | -32 |
2058 | -505 | -41 |
2059 | -530 | -50 |
2060 | -556 | -59 |
2061 | -582 | -69 |
2062 | -609 | -79 |
2063 | -636 | -90 |
2064 | -664 | -101 |
2065 | -692 | -113 |
2066 | -721 | -125 |
2067 | -750 | -137 |
2068 | -780 | -150 |
2069 | -810 | -163 |
2070 | -840 | -176 |
2071 | -871 | -190 |
2072 | -903 | -204 |
2073 | -935 | -219 |
2074 | -967 | -234 |
2075 | -1000 | -250 |
2076 | -1035 | -266 |
2077 | -1070 | -282 |
2078 | -1106 | -299 |
2079 | -1142 | -317 |
2080 | -1180 | -334 |
2081 | -1219 | -352 |
2082 | -1258 | -371 |
2083 | -1298 | -389 |
2084 | -1338 | -408 |
2085 | -1380 | -427 |
2086 | -1423 | -446 |
2087 | -1466 | -466 |
2088 | -1510 | -485 |
2089 | -1554 | -505 |
2090 | -1599 | -524 |
2091 | -1643 | -544 |
2092 | -1687 | -563 |
2093 | -1731 | -581 |
2094 | -1774 | -600 |
2095 | -1816 | -618 |
2096 | -1858 | -636 |
2097 | -1900 | -654 |
2098 | -1941 | -672 |
2099 | -1982 | -689 |
2100 | -2022 | -707 |
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