Proposed Provision: E2.4. Eliminate the taxable maximum for years 2029 and later (phased in 2023-2029), 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 2022 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $8,933 in 2023, indexed by wages after 2023; 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
2022230230
2023211211
2024194197
2025177185
2026160175
2027143167
2028126161
2029109157
203091155
203174152
203257149
203339145
203421142
20353139
2036-16136
2037-35132
2038-54129
2039-74125
2040-95121
2041-116117
2042-137113
2043-158108
2044-180104
2045-20299
2046-22494
2047-24690
2048-26884
2049-29179
2050-31374
2051-33668
2052-35962
2053-38356
2054-40650
2055-43043
2056-45336
2057-47729
2058-50121
2059-52513
2060-5505
2061-575-3
2062-601-12
2063-627-22
2064-654-31
2065-681-41
2066-708-51
2067-736-62
2068-764-72
2069-792-84
2070-821-95
2071-850-107
2072-880-119
2073-910-131
2074-940-144
2075-971-157
2076-1003-170
2077-1036-184
2078-1069-198
2079-1104-212
2080-1139-226
2081-1175-241
2082-1212-256
2083-1249-270
2084-1286-285
2085-1324-300
2086-1363-315
2087-1402-330
2088-1442-344
2089-1481-359
2090-1520-373
2091-1558-387
2092-1595-400
2093-1632-413
2094-1668-426
2095-1703-439
2096-1738-451
2097-1773-464
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