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
2025169169
2026149149
2027131133
2028113120
202995109
203078100
20316093
20324388
20332686
2034984
2035-982
2036-2779
2037-4576
2038-6373
2039-8369
2040-10265
2041-12261
2042-14357
2043-16453
2044-18548
2045-20643
2046-22838
2047-25033
2048-27228
2049-29523
2050-31717
2051-34011
2052-3635
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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