Skip to content Social Security Online |
Actuarial Publications |
www.socialsecurity.gov | Home FAQs Contact Us Search |
Actuarial Publications |
Summary of Provisions That Would Change the Social Security Program |
Description of Proposed Provisions:
|
|
Estimates based on the intermediate assumptions of the 2016 Trustees Report
Printer-friendly Version (PDF) |
Change from present law [percent of payroll] |
Shortfall eliminated | |||||
---|---|---|---|---|---|---|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
|||
Present law shortfall in long-range actuarial balance is 2.66 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll. | ||||||
F1 |
Starting in 2017, cover newly hired State and local government employees.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) | memo (Bipartisan Policy Center 2010) | memo (Warshawsky) | memo (Social Security Advisory Board) |
0.15 | -0.15 | 6% | -3% | |
F2 |
Starting in 2017, exempt individuals with more than 180 quarters of
coverage from the OASDI payroll tax. Earnings exempted from OASDI
payroll tax would not be used in computing benefits.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
-0.48 | -0.65 | -18% | -15% | |
F3 |
Expand covered earnings to include employer and employee premiums for
employer-sponsored group health insurance (ESI). Starting in 2020,
phase out the OASDI payroll tax exclusion for ESI premiums. Set an
exclusion level at the 75th percentile of premium distribution in 2020,
with amounts above that subject to the payroll tax. Reduce the exclusion
level each year by 10 percent of the 2020 exclusion level until fully
eliminated in 2030. Eliminate the excise tax on ESI premiums scheduled
to begin in 2020.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
0.87 | 0.61 | 33% | 14% | |
F4 |
Expand covered earnings to include contributions to voluntary salary
reduction plans (such as Cafeteria 125 plans and Flexible Spending
Accounts). Starting in 2017, subject these contributions to the OASDI
payroll tax, making the payroll tax treatment of these contributions
like 401(k) contributions.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
0.26 | 0.16 | 10% | 4% | |
F5 |
Tax Reform for Business: Establish a value added tax of 3.0 percent
for 2018 and 6.5 percent for 2019 and later. Starting in 2018, reduce the
corporate income tax rate from 35 to 27 percent.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
-0.02 | 0.17 | -1% | 4% | |
F6 |
Apply a 6.2 percent tax on investment income as defined in the Affordable
Care Act (ACA), with unindexed thresholds as in the ACA ($200,000 for single
filer, $250,000 for married filing jointly), starting in 2018. Proceeds go to
the OASDI Trust Fund.
graph | table | pdf-graph | pdf-table | memo (Sanders, DeFazio) | memo (Sanders 2016) | memo (Sanders 2015) |
0.93 | 1.15 | 35% | 26% |
Privacy Policy
| Website Policies
& Other Important Information
| Site Map Last reviewed or modified February 22, 2017 |