Provisions Affecting Coverage of Employment or Earnings, or Inclusion of Other Sources of Revenue
These provisions expand or reduce the categories of workers or the amount of earnings covered under the Social Security system, or add other sources of revenue that would be dedicated to OASDI. We provide a summary list of all options (printer-friendly PDF version) in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2020 Trustees Report.
Choose the type of estimates (summary or detailed) from the list of provisions.
| Number | Table and graph selection |
|---|---|
| F1 |
Starting in 2021, cover newly hired State and local government employees.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: |
| F2 |
Starting in 2021, 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
| F3 |
Expand covered earnings to include employer and employee premiums for
employer-sponsored group health insurance (ESI). Starting in 2024, phase
out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion
level at the 75th percentile of premium distribution in 2024, with amounts
above that subject to the payroll tax. Reduce the exclusion level each
year by 10 percent of the 2024 exclusion level until fully eliminated
in 2033.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
| F4 |
Expand covered earnings to include contributions to voluntary salary
reduction plans (such as Cafeteria 125 plans and Flexible Spending
Accounts). Starting in 2021, subject these contributions to the OASDI
payroll tax, making the payroll tax treatment of these contributions
like 401(k) contributions.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
| F5 |
Tax Reform for Business: Establish a value added tax (VAT) of 3.0
percent for 2022 and 6.5 percent for 2023 and later. Assume about 75% of
personal consumption expenditures is subject to the VAT.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
| 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 2022. Proceeds go
to the OASI and DI Trust Funds.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: |
| F7 |
For the estate tax, gift tax, and generation skipping transfer (GST) tax,
return the respective exemption thresholds and tax rates to 2009 levels
($3.5 million threshold for estate tax with a top 45% tax rate) for deaths
after 2020 and gifts made after 2020, with those levels not indexed in future
years. All proceeds from the estate tax, gift tax, and GST tax would go
to the OASI and DI Trust Funds.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: |