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Summary of Provisions That Would Change the Social Security Program 
Description of Proposed Provisions:


Estimates based on the intermediate assumptions of the 2015 Trustees Report
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Change from present law [percent of payroll] 
Shortfall eliminated  

Longrange actuarial balance 
Annual balance in 75th year 
Longrange actuarial balance 
Annual balance in 75th year 

Present law shortfall in longrange actuarial balance is 2.68 percent of payroll and in annual balance for the 75th year is 4.65 percent of payroll.  
E1.1 
Increase the payroll tax rate (currently 12.4 percent) to 15.3 percent in 2016 and later.
graph  table  pdfgraph  pdftable  memo (Social Security Advisory Board) 
2.76  2.87  103%  62%  
E1.2 
Increase the payroll tax rate (currently 12.4 percent) to 15.2 percent in
20282057, and to 18.0 percent in years 2058 and later.
graph  table  pdfgraph  pdftable  memo (Social Security Advisory Board) 
2.95  5.43  110%  117%  
E1.3 
Reduce the payroll tax rate (currently 12.4 percent) to 11.4 percent in 2016 and later.
graph  table  pdfgraph  pdftable  memo (Warshawsky) 
0.97  1.01  36%  22%  
E1.4 
Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point
each year from 20212040, until the rate reaches 14.4 percent in 2040 and later.
graph  table  pdfgraph  pdftable  memo (Larson 2014)  memo (National Academy of Social Insurance) 
1.43  1.99  53%  43%  
E1.5 
Increase the payroll tax rate (currently 12.4 percent) to 12.6 percent in 2018,
12.9 percent in 2026, 13.1 in percent in 2036, 13.9 percent in 2046, 13.5 percent
in 2056, and 13.3 percent in 2066 and later.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
0.75  0.91  28%  20%  
E1.6 
Increase the payroll tax rate (currently 12.4 percent) to 12.6 percent in 2018,
12.9 percent in 2026, 13.3 in percent in 2036, 13.8 percent in 2046, 14.4 percent
in 2066, and 14.5 percent in 2081 and later.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
1.05  2.07  39%  44%  
E1.7 
Increase the payroll tax rate (currently 12.4 percent) to 12.7 percent in 2018,
13.0 percent in 2031, 13.3 in percent in 2046, 14.0 percent in 2066, 14.5 percent
in 2076, and 14.7 percent in 2086 and later.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
0.85  2.25  32%  48%  
E1.8 
Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point
each year from 20182023, until the rate reaches 13.0 percent for 2023 and later.
graph  table  pdfgraph  pdftable  memo (Moore) 
0.54  0.60  20%  13%  
E1.9 
Increase the payroll tax rate (currently 12.4 percent) by 0.1 percentage point each
year from 20192042, until the rate reaches 14.8 percent in 2042. Then increase the
payroll tax rate an additional 0.1 percentage point in each year from 20812085,
until the rate reaches 15.3 percent for 2085 and later.
graph  table  pdfgraph  pdftable  memo (Larson 2015) 
1.74  2.85  65%  61%  
E2.1 
Eliminate the taxable maximum in years 2016 and later, and apply full 12.4 percent
payroll tax rate to all earnings. Do not provide benefit credit for earnings above
the currentlaw taxable maximum.
graph  table  pdfgraph  pdftable  memo (DeFazio 2015)  memo (Social Security Advisory Board) 
2.36  2.47  88%  53%  
E2.2 
Eliminate the taxable maximum in years 2016 and later, and apply full 12.4 percent
payroll tax rate to all earnings. Provide benefit credit for earnings above the
currentlaw taxable maximum.
graph  table  pdfgraph  pdftable  memo (Social Security Advisory Board) 
1.91  1.60  71%  34%  
E2.3 
Eliminate the taxable maximum in years 2016 and later, and apply full 12.4 percent
payroll tax rate to all earnings. Provide benefit credit for earnings above the
currentlaw taxable maximum, adding a bend point at the currentlaw taxable maximum
and applying a formula factor of 3 percent for AIME above this new bend point.
graph  table  pdfgraph  pdftable  memo (National Academy of Social Insurance) 
2.16  2.15  81%  46%  
E2.4 
Eliminate the taxable maximum for years 2022 and later (phased in 20162021), and
apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit
for earnings above the currentlaw 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 2015 that were in excess of that year's
currentlaw taxable maximum; (2) a new bend point equal to 134 percent of the monthly
currentlaw taxable maximum; and (3) formula factors of 3 percent and 0.25 percent below
and above the new bend point, respectively.
graph  table  pdfgraph  pdftable  memo (Deutch 2015)  memo (Deutch 2010) 
2.18  2.34  81%  50%  
E2.5 
Apply 12.4 percent payroll tax rate on earnings above $250,000 starting in 2016,
and tax all earnings once the currentlaw taxable maximum exceeds $250,000. Do
not provide benefit credit for additional earnings taxed.
graph  table  pdfgraph  pdftable  memo (Sanders 2015)  memo (Sanders 2013)  memo (DeFazio 2011) 
2.18  2.46  81%  53%  
E2.6 
Apply a 3 percent payroll tax on earnings above the currentlaw taxable maximum
starting in 2016. Do not provide benefit credit for earnings above the currentlaw
taxable maximum.
graph  table  pdfgraph  pdftable  memo (AARP) 
0.61  0.64  23%  14%  
E2.7 
Apply a 6 percent payroll tax on earnings above the currentlaw taxable maximum
starting in 2016. Do not provide benefit credit for earnings above the currentlaw
taxable maximum.
graph  table  pdfgraph  pdftable  memo (Wexler) 
1.19  1.25  44%  27%  
E2.8 
Apply a 2 percent payroll tax on earnings above the currentlaw taxable maximum
for years 20182065, and a 3 percent rate for years 2066 and later. Do not provide
benefit credit for earnings above the currentlaw taxable maximum.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
0.44  0.63  16%  14%  
E2.9 
Apply the following payroll tax rates above the currentlaw taxable maximum:
2.0 percent in 2018, 3.0 percent in 2031, 3.5 percent in 2046, 4.5 percent in
2056, and 5.5 percent in 2066 and later. Do not provide benefit credit for
earnings above the currentlaw taxable maximum.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
0.70  1.14  26%  24%  
E2.10 
Eliminate the taxable maximum in years 2026 and later. Phase in elimination by
taxing all earnings above the currentlaw taxable maximum at: 1.24 percent in
2017, 2.48 percent in 2018, and so on, up to 11.16 percent in 2025. Provide
benefit credit for earnings above the currentlaw taxable maximum, adding a bend
point at the currentlaw taxable maximum and applying a formula factor of 5
percent for AIME above this new bend point.
graph  table  pdfgraph  pdftable  memo (Harkin 2012) 
1.92  2.05  72%  44%  
E2.11 
Eliminate the taxable maximum in years 2021 and later. Phase in elimination by
taxing all earnings above the currentlaw taxable maximum at: 2.48 percent in
2017, 4.96 percent in 2018, and so on, up to 12.40 percent in 2021. Provide benefit
credit for earnings above the currentlaw 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 2016 that were in excess
of that year's currentlaw taxable maximum; and (2) a formula factor of 5 percent on
this newly computed "AIME+".
graph  table  pdfgraph  pdftable  memo (Schatz)  memo (Harkin 2013) 
2.09  2.16  78%  46%  
E2.12 
Eliminate the taxable maximum in years 2027 and later. Phase in elimination by
taxing all earnings above the currentlaw taxable maximum at: 1.24 percent in
2018, 2.48 percent in 2019, and so on, up to 11.16 percent in 2026. Provide
benefit credit for earnings above the currentlaw taxable maximum. Create a new
bend point at the currentlaw taxable maximum with a 3 percent formula factor
applying above the new bend point.
graph  table  pdfgraph  pdftable  memo (Moore) 
1.92  2.15  72%  46%  
E2.13 
Apply OASDI payroll tax rate on earnings above $400,000 starting in 2017, and
tax all earnings once the currentlaw taxable maximum exceeds $400,000. Provide
benefit credit for earnings above the currentlaw 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 2016
that were in excess of that year's currentlaw taxable maximum; and (2) a formula
factor of 2 percent on this newly computed "AIME+".
graph  table  pdfgraph  pdftable  memo (Larson 2015)  memo (Larson 2014) 
1.86  2.34  69%  50%  
E3.1 
Increase the taxable maximum such that 90 percent of earnings would be subject to
the payroll tax (phased in 20162025). Provide benefit credit for earnings up to
the revised taxable maximum.
graph  table  pdfgraph  pdftable  memo (Social Security Advisory Board) 
0.77  0.63  29%  14%  
E3.2 
Increase the taxable maximum such that 90 percent of earnings would be subject to the
payroll tax (phased in 20162025). Do not provide benefit credit for additional earnings
taxed.
graph  table  pdfgraph  pdftable  memo (Liebman, MacGuineas, Samwick) 
0.98  1.10  37%  24%  
E3.3 
Increase the taxable maximum such that 90 percent of earnings would be subject to the
payroll tax (phased in 20172022). Provide benefit credit for earnings up to the revised
taxable maximum.
graph  table  pdfgraph  pdftable  memo (AARP) 
0.79  0.63  29%  14%  
E3.4 
Increase the taxable maximum from $106,800 to $115,200 (in 2009 AWIindexed dollars),
phased in 20162018. Provide benefit credit for earnings up to the revised taxable
maximum.
graph  table  pdfgraph  pdftable  memo (Warshawsky) 
0.12  0.08  4%  2%  
E3.5 
Increase the taxable maximum each year by an additional 2 percent beginning in
2016 until taxable earnings equal 90 percent of covered earnings. Provide benefit
credit for earnings up to the revised taxable maximum.
graph  table  pdfgraph  pdftable  memo (Bipartisan Policy Center)  memo (National Academy of Social Insurance) 
0.62  0.66  23%  14%  
E3.6 
Increase the taxable maximum each year by an additional 2 percent beginning in
2018 until taxable earnings equal 90 percent of covered earnings. Do not provide
benefit credit for additional earnings taxed.
graph  table  pdfgraph  pdftable  memo (NRC/NAPA) 
0.73  1.10  27%  24%  
E3.7 
Increase the taxable maximum by an additional 2 percent per year beginning in 2017
until taxable earnings equal 90 percent of covered earnings. Provide benefit credit
for earnings up to the revised taxable maximum. Create a new bend point equal to
the currentlaw taxable maximum with a 5 percent formula factor applying above the
new bend point.
graph  table  pdfgraph  pdftable  memo (Fiscal Commission) 
0.63  0.77  24%  16%  
E3.8 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $200,000 in 2017, with the threshold wageindexed
after 2023. Provide proportional benefit credit for additional earnings taxed,
based on the payroll tax rate applied to the additional earnings divided by
the full 12.4 percent payroll tax rate.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.19  0.16  7%  3%  
E3.9 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $200,000 in 2017, with the threshold wageindexed
after 2023. Do not provide benefit credit for additional earnings taxed.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.25  0.30  9%  6%  
E3.10 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $300,000 in 2017, with the threshold wageindexed
after 2023. Provide proportional benefit credit for additional earnings
taxed, based on the payroll tax rate applied to the additional earnings
divided by the full 12.4 percent payroll tax rate.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.14  0.12  5%  2%  
E3.11 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $300,000 in 2017, with the threshold wageindexed
after 2023. Do not provide benefit credit for additional earnings taxed.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.19  0.22  7%  5%  
E3.12 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $400,000 in 2017, with the threshold wageindexed
after 2023. Provide proportional benefit credit for additional earnings taxed,
based on the payroll tax rate applied to the additional earnings divided by the
full 12.4 percent payroll tax rate.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.12  0.09  4%  2%  
E3.13 
Beginning in 2023, apply 2 percent payroll tax rate on earnings over the
wageindexed equivalent of $400,000 in 2017, with the threshold wageindexed
after 2023. Do not provide benefit credit for additional earnings taxed.
graph  table  pdfgraph  pdftable  memo (Johnson, Brady, Ryan) (includes similar provisions with 3 percent and 4 percent payroll tax rates) 
0.15  0.18  6%  4%  
E3.14 
Eliminate the taxable maximum for the employer payroll tax (6.2 percent)
beginning in 2016. For the employee payroll tax (6.2 percent) and for
benefit credit purposes, beginning in 2016, increase the taxable maximum
by an additional 2 percent per year until taxable earnings equal 90 percent
of covered earnings.
graph  table  pdfgraph  pdftable  memo (National Academy of Social Insurance) 
1.44  1.38  54%  30%  
E3.15 
Increase the taxable maximum such that 90 percent of earnings are subject
to the payroll tax (phased in 20162025). In addition, apply a tax rate of
6.2 percent for earnings above the revised taxable maximum (phased in from
20162025). Provide benefit credit for earnings taxed up to the revised
taxable maximum.
graph  table  pdfgraph  pdftable  memo (Senate Special Committee on Aging) 
1.40  1.34  52%  29%  
E3.16 
Beginning in 2017, apply 4 percent payroll tax rate on earnings above the
wageindexed equivalent of $400,000 in 2015, with the threshold wageindexed
after 2017. 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 wageindexed equivalents
of $400,000 and $500,000 (with thresholds wageindexed after 2017); and (2) a
formula factor of 2 percent on this newly computed "AIME+".
graph  table  pdfgraph  pdftable  memo (Begich, Murray) 
0.32  0.34  12%  7% 
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