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Summary of Provisions That Would Change the Social Security Program

Description of Proposed Provisions:
Provisions Affecting OASDI Contribution and Benefit Base

Estimates based on the intermediate assumptions of the 2005 Trustees Report

  Change from present law Results with this provision
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Present Law, Alternative II.
-1.92 -5.70
E1 Beginning in 2006, make all earnings subject to the payroll tax (but retain the current-law taxable maximum for benefit calculations).
graph | table | pdf-graph | pdf-table
2.21 2.89 0.28 -2.81
E2 Beginning in 2006, make all earnings subject to the payroll tax and credit them for benefit purposes.
graph | table | pdf-graph | pdf-table
1.82 2.06 -0.10 -3.64
E3 Determine the level of the contribution and benefit base such that 90 percent of the earnings would be subject to the payroll tax (phased in 2006-2015). All earnings subject to the payroll tax would be used in determining benefits.
graph | table | pdf-graph | pdf-table
0.83 0.96 -1.09 -4.74
E4 Make 90% of the earnings subject to the payroll tax (phased in 2008-2017), but retain the current-law taxable maximum for benefit purposes. This estimate considers all self-employed earnings in computing the percentage of earnings subject to the payroll tax.
graph | table | pdf-graph | pdf-table
1.00 1.47 -0.93 -4.23
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Last reviewed or modified Tuesday Dec 11, 2007