Proposed Provision: E2.18. Apply the combined OASDI payroll tax rate on covered earnings above $400,000 paid in 2025 and later, and tax all covered earnings once the current-law taxable maximum exceeds $400,000. Increase the computed level of the AWI for years after 2024 by amounts ranging from 0.5 percent for 2025 to 0.9 percent for 2047 and later. Credit the additional earnings taxed for benefit purposes by: (a) calculating a second average indexed monthly earnings ("AIME+") reflecting only earnings taxed above the current-law taxable maximum, (b) applying a 1 percent factor on this newly computed "AIME+" to develop a second component of the PIA, and (c) adding this second component to the current-law PIA.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Current Law Provision
2023204204
2024187187
2025168168
2026149156
2027131146
2028114137
202996127
203078117
203160108
20324399
20332590
2034781
2035-1272
2036-3164
2037-5155
2038-7047
2039-9138
2040-11230
2041-13321
2042-15413
2043-1765
2044-198-3
2045-220-10
2046-243-17
2047-265-24
2048-288-31
2049-311-38
2050-333-44
2051-357-51
2052-380-58
2053-403-66
2054-427-73
2055-450-81
2056-474-89
2057-498-98
2058-522-107
2059-547-116
2060-572-126
2061-597-136
2062-623-146
2063-650-157
2064-677-169
2065-705-180
2066-733-192
2067-762-205
2068-791-218
2069-820-231
2070-850-244
2071-880-258
2072-911-272
2073-942-286
2074-974-301
2075-1006-316
2076-1039-331
2077-1074-347
2078-1108-363
2079-1144-380
2080-1181-397
2081-1218-414
2082-1256-431
2083-1294-448
2084-1333-466
2085-1373-483
2086-1413-500
2087-1453-518
2088-1494-535
2089-1534-552
2090-1574-568
2091-1613-585
2092-1651-601
2093-1689-616
2094-1726-631
2095-1762-646
2096-1798-660
2097-1833-675
2098-1868-689
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