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Solvency Provisions |
Provisions Affecting OASDI Contribution and Benefit Base |
Information on the contribution and benefit base (taxable maximum) |
These provisions modify the OASDI contribution and benefit base (taxable maximum). The OASDI contribution and benefit base serves the following two purposes:
All estimates are based on the intermediate assumptions described in the 2008 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions. |
Number | Table and graph selection |
---|---|
E1 | Beginning in 2009, make all earnings subject to the payroll tax
(but retain the current-law taxable maximum for benefit calculations).
Summary measures and graphs (PDF version) |
E2 | Beginning in 2009, make all earnings subject to the payroll tax and
credit them for benefit purposes.
Summary measures and graphs (PDF version) |
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
2009-2018). All earnings subject to the payroll tax would be used in
determining benefits.
Summary measures and graphs (PDF version) |
E4 | Make 90% of the earnings subject to the payroll tax (phased in
2009-2018), 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.
Summary measures and graphs (PDF version) |
E5 | Raise the taxable maximum amount (the contribution and benefit base)
to include 90 percent of total OASDI covered earnings. Phase in
this increase gradually between 2010 and 2015. Benefit
computations would reflect all earnings up to the new taxable
maximum.
Summary measures and graphs (PDF version) |
E6 | Impose a 3 percent payroll tax on OASDI covered earnings above
the current taxable maximum starting in 2009. Benefit
computations would not reflect any earnings above the taxable
maximum amount.
Summary measures and graphs (PDF version) |
E7 | In 2009 through 2011, raise the OASDI contribution and benefit
base from $102,000 to $110,000 (in 2008 AWI indexed dollars). For
years after 2011, the contribution and benefit base would be increased
based on changes in SSA's average wage index. Additional earnings
subject to the OASDI payroll tax would be credited for benefit
calculation purposes.
Summary measures and graphs (PDF version) |
Above provisions
Summary measures |
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