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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 2008 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. |
-1.70 | -4.20 | ||||
E1 | Beginning in 2009, make
all earnings subject to the payroll tax (but retain the current-law
taxable maximum for benefit calculations). graph | table | pdf-graph | pdf-table |
2.19 | 2.67 | 0.50 | -1.53 | |
E2 | Beginning in 2009, make all earnings
subject to the payroll tax and credit them for benefit purposes. graph | table | pdf-graph | pdf-table |
1.84 | 1.96 | 0.14 | -2.24 | |
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. graph | table | pdf-graph | pdf-table |
0.83 | 0.93 | -0.87 | -3.27 | |
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. graph | table | pdf-graph | pdf-table | memo |
1.01 | 1.36 | -0.69 | -2.84 | |
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.
graph | table | pdf-graph | pdf-table |
0.84 | 0.93 | -0.86 | -3.27 | |
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.
graph | table | pdf-graph | pdf-table |
0.64 | 0.78 | -1.06 | -3.42 | |
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.
graph | table | pdf-graph | pdf-table | memo |
0.15 | 0.13 | -1.55 | -4.07 |
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