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Summary Measures and Graphs

Description of Proposed Provision:
Eliminate the taxable maximum for the employer payroll tax (6.2 percent) beginning in 2012. For the employee payroll tax (6.2 percent) and for benefit calculation purposes, beginning in 2012, increase the taxable maximum by an additional 2 percent per year until taxable earnings equal 90 percent of covered earnings.

Estimates based on the intermediate assumptions of the 2011 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law 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
Long-range
actuarial
balance
Annual
balance in
75th year
-2.22 -4.24 1.44 1.43 -0.78 -2.82


graph of OASDI cost rates and income rates by year, under
                 present law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under present law
                 and provision. click on graph to view underlying data.
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Last reviewed or modified December 21, 2011