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 2021 Trustees Report.
Choose the type of estimates (summary or detailed) from the list of provisions.
| Number | Table and graph selection |
|---|---|
| F1 |
Starting in 2022, 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 2022, 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 2025, phase out the OASDI payroll tax exclusion
for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution
in 2025, with amounts above that subject to the payroll tax. Reduce the exclusion level
each year by 10 percent of the 2025 exclusion level until fully eliminated in 2035.
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
2022, 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 2023 and 6.5 percent for 2024 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 2023. 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
2021 and gifts made after 2021, 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) Memorandum containing this or a similar provision: |