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Summary Measures and Graphs
Payroll Taxes (including maximum taxable)

Description of Proposed Provision:
Increase contribution and benefit base (taxable maximum) by an additional 2 percent per year beginning in 2012 until taxable earnings are equal to 90 percent of covered earnings (estimated to occur in 2049). Additional taxable earnings would be credited for the purpose of computing benefits. Create a new bend point equal to the current-law taxable maximum and provide a 5 percent PIA formula factor for AIME above the new bend point.

Estimates based on the intermediate assumptions of the 2010 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law 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		 Long-range
actuarial
balance		 Annual
balance in
75th year
-1.92 -4.12 0.67 0.90 -1.25 -3.21


graph of OASDI cost rates and income rates by year, under present law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under present law and provision. click on graph to view underlying data.
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Last reviewed or modified March 2, 2011