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Summary of Provisions That Would Change the Social Security Program |
Description of Proposed Provisions:
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Estimates based on the intermediate assumptions of the 2011 Trustees Report
Printer-friendly Version (PDF) |
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. |
  |   | -2.22 | -4.24 | |
H1 |
Starting in 2012, tax Social Security benefits in a manner similar to private pension income.
Phase out the lower-income thresholds during 2012-2021. graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.28 | 0.17 | -1.94 | -4.07 | |
H2 |
Starting in 2012, tax Social Security benefits in a manner similar to private pension income.
Phase out the lower-income thresholds during 2012-2031. graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
0.25 | 0.17 | -1.97 | -4.07 | |
H3 |
Tax Reform for Individuals: Starting in 2013, modify personal income tax by: (a) establishing
two-brackets with marginal rates of 15 and 27 percent separated at $51,000 (CPI indexed); (b) creating
a non-refundable credit for low-income tax filers age 65 and older; and (c) treating capital gains as
regular income. Tax all Social Security benefits at the applicable marginal rate (15 or 27 percent)
less a non-refundable credit of 7.5 percent. Base revenue to OASDHI on the net marginal rates of 7.5
and 19.5 percent, with 40 percent of revenue dedicated to HI. graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center) |
-0.02 | -0.06 | -2.24 | -4.30 |
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