Proposed Provision: Beginning in 2016, apply 4 percent payroll tax rate on earnings above the wage-indexed equivalent of $400,000 in 2015, with the threshold wage-indexed after 2016. Provide benefit credit for additional earnings taxed, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings taxed only between 2015 wage-indexed equivalents of $400,000 and $500,000; and (2) a formula factor of 2 percent on this newly computed "AIME+".
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Present Law |
Provision |
2014 | 320 | 320 |
2015 | 306 | 306 |
2016 | 292 | 292 |
2017 | 277 | 279 |
2018 | 262 | 267 |
2019 | 248 | 255 |
2020 | 233 | 242 |
2021 | 219 | 229 |
2022 | 203 | 216 |
2023 | 187 | 202 |
2024 | 171 | 188 |
2025 | 154 | 172 |
2026 | 137 | 157 |
2027 | 119 | 141 |
2028 | 101 | 125 |
2029 | 83 | 109 |
2030 | 64 | 91 |
2031 | 44 | 73 |
2032 | 23 | 55 |
2033 | 2 | 36 |
2034 | -20 | 16 |
2035 | -42 | -4 |
2036 | -65 | -24 |
2037 | -88 | -45 |
2038 | -112 | -67 |
2039 | -136 | -88 |
2040 | -160 | -110 |
2041 | -185 | -132 |
2042 | -210 | -154 |
2043 | -235 | -176 |
2044 | -260 | -199 |
2045 | -285 | -221 |
2046 | -310 | -244 |
2047 | -336 | -267 |
2048 | -362 | -290 |
2049 | -388 | -313 |
2050 | -415 | -337 |
2051 | -442 | -361 |
2052 | -468 | -385 |
2053 | -495 | -409 |
2054 | -523 | -433 |
2055 | -550 | -458 |
2056 | -578 | -483 |
2057 | -606 | -508 |
2058 | -635 | -534 |
2059 | -664 | -560 |
2060 | -694 | -587 |
2061 | -725 | -614 |
2062 | -756 | -642 |
2063 | -787 | -670 |
2064 | -819 | -699 |
2065 | -852 | -729 |
2066 | -885 | -758 |
2067 | -918 | -788 |
2068 | -952 | -819 |
2069 | -987 | -850 |
2070 | -1022 | -882 |
2071 | -1057 | -914 |
2072 | -1094 | -948 |
2073 | -1132 | -982 |
2074 | -1171 | -1017 |
2075 | -1210 | -1053 |
2076 | -1251 | -1090 |
2077 | -1293 | -1127 |
2078 | -1335 | -1166 |
2079 | -1378 | -1204 |
2080 | -1421 | -1243 |
2081 | -1464 | -1282 |
2082 | -1507 | -1321 |
2083 | -1550 | -1360 |
2084 | -1593 | -1399 |
2085 | -1636 | -1438 |
2086 | -1680 | -1478 |
2087 | -1724 | -1518 |
2088 | -1769 | -1559 |
2089 | -1814 | -1600 |
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