CATEGORY: TAXATION CHANGES
PROPOSAL:Increase the earnings subject to taxation: Make 90% of earnings subject to the Social Security payroll tax, include these earnings in benefit computations, and phase in from 2015 to 2024

Projected effects on beneficiaries in 2030

Table 1. Individual benefit changes, 2030: Increase Taxable Maximum to 90% vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Benefits Higher Benefits Lower Benefits Higher Benefits
Total 0% 0% 5% 0% 100%
Sex
Female 0% 0% 4% 0% 100%
Male 0% 0% 7% 0% 100%
Ethnicity/Race
Hispanic 0% 0% 2% 0% 100%
White 0% 0% 6% 0% 100%
Black 0% 0% 2% 0% 100%
Other 0% 0% 8% 0% 100%
Country of Birth
U.S. 0% 0% 5% 0% 100%
Foreign 0% 0% 6% 0% 100%
Age
60-69 0% 0% 9% 0% 100%
70-79 0% 0% 5% 0% 100%
80-89 0% 0% 0% 0% 100%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 7% 0% 100%
Divorced 0% 0% 4% 0% 100%
Widowed 0% 0% 3% 0% 100%
Never Married 0% 0% 4% 0% 100%
Education
Graduate 0% 0% 15% 0% 100%
Bachelor 0% 0% 12% 0% 100%
Associate 0% 0% 4% 0% 100%
High School 0% 0% 2% 0% 100%
Less than 12 Yrs 0% 0% 1% 0% 100%
Official Poverty
Above poverty 0% 0% 6%
In poverty 0% 0% 0%
Household Income Quintile
$175,526+ 0% 0% 16% 0% 100%
$97,521 - $175,526 0% 0% 7% 0% 100%
$57,224 - $97,521 0% 0% 3% 0% 100%
$30,478 - $57,224 0% 0% 2% 0% 100%
$0-$30,478 0% 0% 0% 0% 100%
Current Law Benefit Type
Retired worker 0% 0% 6% 0% 100%
Widow(er) 0% 0% 2% 0% 100%
Spouse 0% 0% 11% 0% 100%
Disabled worker 0% 0% 2% 0% 100%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 Ref #: SSAB0331v2
Notes: . . . = not applicable; — = sample size is too small.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 2. Household income changes, 2030: Increase Taxable Maximum to 90% vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Income Higher Income Lower Income Higher Income
Total 0% 0% 2% 0% 0% 27%
Sex
Female 0% 0% 1% 0% 0% 30%
Male 0% 0% 2% 0% 0% 26%
Ethnicity/Race
Hispanic 0% 0% 1% 0% 0% 36%
White 0% 0% 2% 0% 0% 26%
Black 0% 0% 1% 0% 0% 30%
Other 0% 0% 3% 0% 0% 35%
Country of Birth
U.S. 0% 0% 1% 0% 0% 25%
Foreign 0% 0% 2% 0% 0% 39%
Age
60-69 0% 0% 3% 0% 0% 32%
70-79 0% 0% 1% 0% 0% 22%
80-89 0% 0% 0% 0% 0% 11%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 2% 0% 0% 25%
Divorced 0% 0% 2% 0% 0% 35%
Widowed 0% 0% 1% 0% 0% 31%
Never Married 0% 0% 1% 0% 0% 29%
Education
Graduate 0% 0% 4% 0% 0% 24%
Bachelor 0% 0% 3% 0% 0% 26%
Associate 0% 0% 1% 0% 0% 30%
High School 0% 0% 1% 0% 0% 30%
Less than 12 Yrs 0% 0% 1% 0% 68%
Official Poverty
Above poverty 0% 0% 2%
In poverty 0% 0% 0%
Household Income Quintile
$175,526+ 0% 0% 3% 0% 0% 15%
$97,521 - $175,526 0% 0% 2% 0% 0% 33%
$57,224 - $97,521 0% 0% 2% 0% 51%
$30,478 - $57,224 0% 0% 1% 0% 64%
$0-$30,478 0% 0% 0% 0% 90%
Current Law Benefit Type
Retired worker 0% 0% 2% 0% 0% 23%
Widow(er) 0% 0% 1% 0% 0% 47%
Spouse 0% 0% 4% 0% 0% 36%
Disabled worker 0% 0% 1% 0% 0% 47%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 Ref #: SSAB0331v2
Notes: . . . = not applicable; — = sample size is too small.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 3. Poverty, 2030: Increase Taxable Maximum to 90% vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic Poverty Rate Population Change (thousands)
Scheduled Option Change
Total 4.9% 4.9% 0.0% 0
Sex
Female 5.3% 5.3% 0.0% 0
Male 4.3% 4.3% 0.0% 0
Ethnicity/Race
Hispanic 8.8% 8.8% 0.0% 0
White 3.5% 3.5% 0.0% 0
Black 9.0% 9.0% 0.0% 0
Other 7.7% 7.7% 0.0% 0
Country of Birth
U.S. 4.2% 4.2% 0.0% 0
Foreign 8.8% 8.8% 0.0% 0
Age
60-69 5.7% 5.7% 0.0% 0
70-79 4.9% 4.9% 0.0% 0
80-89 3.8% 3.8% 0.0% 0
90+ 2.5% 2.5% 0.0% 0
Marital Status
Married 1.9% 1.9% 0.0% 0
Divorced 8.3% 8.3% 0.0% 0
Widowed 5.8% 5.8% 0.0% 0
Never Married 17.0% 17.0% 0.0% 0
Education
Graduate 1.4% 1.4% 0.0% 0
Bachelor 2.2% 2.2% 0.0% 0
Associate 3.6% 3.6% 0.0% 0
High School 6.1% 6.1% 0.0% 0
Less than 12 Yrs 13.9% 13.9% 0.0% 0
Official Poverty
Above poverty 0.0% 0.0% 0.0% 0
In poverty 100.0% 100.0% 0.0% 0
Household Income Quintile
$175,526+ 0.1% 0.1% 0.0% 0
$97,521 - $175,526 0.1% 0.1% 0.0% 0
$57,224 - $97,521 0.3% 0.3% 0.0% 0
$30,478 - $57,224 0.8% 0.8% 0.0% 0
$0-$30,478 23.0% 23.0% 0.0% 0
Current Law Benefit Type
Retired worker 4.6% 4.6% 0.0% 0
Widow(er) 5.0% 5.0% 0.0% 0
Spouse 5.5% 5.5% 0.0% 0
Disabled worker 8.5% 8.5% 0.0% 0
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 Ref #: SSAB0331v2
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 4. Beneficiary characteristics, 2030: Increase Taxable Maximum to 90% vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All beneficiaries Affected beneficiaries Beneficiaries with lower benefits Beneficiaries with higher benefits
Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent
Total 73,810 100.0 4,040 100.0 . . . . . . 4,040 100.0
Sex
Female 39,993 54.2 1,671 41.4 . . . . . . 1,671 41.4
Male 33,817 45.8 2,369 58.6 . . . . . . 2,369 58.6
Ethnicity/Race
Hispanic 7,865 10.7 177 4.4 . . . . . . 177 4.4
White 54,004 73.2 3,366 83.3 . . . . . . 3,366 83.3
Black 7,559 10.2 138 3.4 . . . . . . 138 3.4
Other 4,382 5.9 359 8.9 . . . . . . 359 8.9
Country of Birth
U.S. 62,372 84.5 3,352 83.0 . . . . . . 3,352 83.0
Foreign 11,438 15.5 688 17.0 . . . . . . 688 17.0
Age
60-69 24,505 33.2 2,265 56.1 . . . . . . 2,265 56.1
70-79 31,533 42.7 1,726 42.7 . . . . . . 1,726 42.7
80-89 14,979 20.3 49 1.2 . . . . . . 49 1.2
90+ 2,793 3.8 . . . . . . . . . . . . . . . . . .
Marital Status
Married 41,785 56.6 2,868 71.0 . . . . . . 2,868 71.0
Divorced 13,632 18.5 589 14.6 . . . . . . 589 14.6
Widowed 12,828 17.4 368 9.1 . . . . . . 368 9.1
Never Married 5,566 7.5 214 5.3 . . . . . . 214 5.3
Education
Graduate 8,636 11.7 1,256 31.1 . . . . . . 1,256 31.1
Bachelor 13,936 18.9 1,612 39.9 . . . . . . 1,612 39.9
Associate 16,752 22.7 604 15.0 . . . . . . 604 15.0
High School 28,256 38.3 503 12.5 . . . . . . 503 12.5
Less than 12 Yrs 6,230 8.4 64 1.6 . . . . . . 64 1.6
Official Poverty
Above poverty 70,205 95.1 4,038 100.0 . . . . . . 4,038 100.0
In poverty 3,604 4.9 2 0.0 . . . . . . 2 0.0
Household Income Quintile
$175,526+ 14,762 20.0 2,325 57.6 . . . . . . 2,325 57.6
$97,521 - $175,526 14,762 20.0 960 23.8 . . . . . . 960 23.8
$57,224 - $97,521 14,763 20.0 468 11.6 . . . . . . 468 11.6
$30,478 - $57,224 14,759 20.0 222 5.5 . . . . . . 222 5.5
$0-$30,478 14,763 20.0 65 1.6 . . . . . . 65 1.6
Current Law Benefit Type
Retired worker 51,869 70.3 2,994 74.1 . . . . . . 2,994 74.1
Widow(er) 12,154 16.5 251 6.2 . . . . . . 251 6.2
Spouse 6,571 8.9 733 18.1 . . . . . . 733 18.1
Disabled worker 3,215 4.4 63 1.5 . . . . . . 63 1.5
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 Ref #: SSAB0331v2
Note: . . . = not applicable.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 5. Beneficiary Status, 2030: Increase Taxable Maximum to 90% vs. Scheduled (in thousands)
POPULATION: current law or option beneficiaries aged 60+
Characteristic Current Law Beneficiaries Changes in beneficiary status under proposed option Policy Option Beneficiaries
Added Removed Net Change
Total 73,810 0 73,818
Sex
Female 39,993 0 39,998
Male 33,817 0 33,820
Ethnicity/Race
Hispanic 7,865 0 0 7,866
White 54,004 0 54,011
Black 7,559 0 0 7,559
Other 4,382 0 0 4,382
Country of Birth
U.S. 62,372 0 62,376
Foreign 11,438 0 11,442
Age
60-69 24,505 0 24,513
70-79 31,533 0 0 31,533
80-89 14,979 0 0 14,979
90+ 2,793 0 0 2,793
Marital Status
Married 41,785 0 41,791
Divorced 13,632 0 0 13,632
Widowed 12,828 0 12,829
Never Married 5,566 0 0 5,566
Education
Graduate 8,636 0 8,642
Bachelor 13,936 0 0 13,937
Associate 16,752 0 0 16,753
High School 28,256 0 0 28,256
Less than 12 Yrs 6,230 0 0 6,230
Official Poverty
Above poverty 70,205 0 70,213
In poverty 3,604 0 0 3,604
Household Income Quintile
$175,526+ 14,762 0 14,765
$97,521 - $175,526 14,762 0 14,768
$57,224 - $97,521 14,763 0 0 14,763
$30,478 - $57,224 14,759 0 0 14,759
$0-$30,478 14,763 0 0 14,763
Current Law Benefit Type
Retired worker 51,869 0 0 51,869
Widow(er) 12,154 0 0 12,154
Spouse 6,571 0 0 6,571
Disabled worker 3,215 0 0 3,215
None 0 0 8
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 Ref #: SSAB0331v2
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.