Skip to content
Social Security Online 		Actuarial Publications
www.socialsecurity.gov Home   FAQs   Contact Us   Search
 
Actuarial Publications SSA logo: link to Social Security Online home

Summary of Provisions That Would Change the Social Security Program
Solvency Provisions

Description of Proposed Provisions:
Provisions Affecting Coverage of Employment or Earnings

Estimates based on the intermediate assumptions of the 2010 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 -4.12
F1 (2011) Cover newly hired State and local government employees beginning in 2011.
graph | table | pdf-graph | pdf-table | memo 		0.17 -0.16 -1.75 -4.28
F1 (2020) Cover newly hired State and local government employees beginning in 2020.
graph | table | pdf-graph | pdf-table | memo 		0.16 -0.12 -1.76 -4.24
F1 (2021) Cover newly hired State and local government employees beginning in 2021.
graph | table | pdf-graph | pdf-table | memo 		0.16 -0.11 -1.76 -4.23
F2 Provide for OASDI payroll tax coverage of employer provided group health insurance cost, starting in 2012. Specifically, any cost toward such group health insurance borne by employees would cease to be deductible, and the cost borne by employers would now be allocated to employees as if it had been wages, for the purpose of payroll tax (and later, benefit) calculations. Both employee and employer OASDI payroll taxes would be affected by this proposal.
graph | table | pdf-graph | pdf-table | memo 		0.96 0.77 -0.96 -3.35
F3 Phase out the income and payroll tax exclusion for employer-sponsored group health insurance (ESI) beginning in 2018. Set the exclusion at the 75th percentile of premium distribution in 2018, with amounts above that subject to tax. Reduce the exclusion level by 10 percent annually, with exclusion fully eliminated in 2028. Eliminate the excise tax on ESI.
graph | table | pdf-graph | pdf-table | memo 		0.93 1.06 -0.99 -3.06
F4 Beginning in 2011, exempt individuals with more than 180 quarters of coverage from the OASDI payroll tax.
graph | table | pdf-graph | pdf-table | memo 		-0.22 -0.31 -2.14 -4.43
F5 Tax all voluntary salary reduction plan contributions (such as Cafeteria 125 plans and FSAs) like 401(k)s for OASDI payroll tax purposes, effective 2012.
graph | table | pdf-graph | pdf-table | memo 		0.22 0.13 -1.70 -3.99
F6 Tax Reform for Business: Establish a value added tax (VAT) of 3.0 percent for 2012 and 6.5 percent for 2013 and later. Lower the corporate income tax rate from 35 to 27 percent starting 2012.
graph | table | pdf-graph | pdf-table | memo 		-0.03 0.16 -1.95 -3.95
 Link to USA.gov: U.S. Government portal Privacy Policy  | Website Policies & Other Important Information  | Site Map
Last reviewed or modified February 28, 2011