Summary of Provisions That Would Change the Social Security Program

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

Estimates based on the intermediate assumptions of the 2005 Trustees Report

		Long-range actuarial balance	Annual balance in 75th year	Long-range actuarial balance	Annual balance in 75th year
		Change from present law		Results with this provision
	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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