CATEGORY: TAXATION CHANGES
PROPOSAL:Increase the earnings subject to taxation: Make all earnings subject to the Social Security payroll tax, and include these earnings in benefit computations

Projected effects on beneficiaries in 2030

Table 1. Individual benefit changes, 2030: Remove Taxable Maximum vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Benefits Higher Benefits Lower Benefits Higher Benefits
Total 0% 0% 6% 0% 100%
Sex
Female 0% 0% 5% 0% 100%
Male 0% 0% 8% 0% 100%
Ethnicity/Race
Hispanic 0% 0% 3% 0% 100%
White 0% 0% 7% 0% 100%
Black 0% 0% 2% 0% 100%
Other 0% 0% 9% 0% 100%
Country of Birth
U.S. 0% 0% 6% 0% 100%
Foreign 0% 0% 7% 0% 100%
Age
60-69 0% 0% 10% 0% 100%
70-79 0% 0% 6% 0% 100%
80-89 0% 0% 0% 0% 100%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 8% 0% 100%
Divorced 0% 0% 5% 0% 100%
Widowed 0% 0% 3% 1% 99%
Never Married 0% 0% 4% 0% 100%
Education
Graduate 0% 0% 16% 0% 100%
Bachelor 0% 0% 13% 0% 100%
Associate 0% 0% 4% 1% 99%
High School 0% 0% 2% 0% 100%
Less than 12 Yrs 0% 0% 1% 0% 100%
Official Poverty
Above poverty 0% 0% 6%
In poverty 0% 0% 0%
Household Income Quintile
$175,526+ 0% 0% 17% 0% 100%
$97,521 - $175,526 0% 0% 7% 0% 100%
$57,224 - $97,521 0% 0% 4% 0% 100%
$30,478 - $57,224 0% 0% 2% 0% 100%
$0-$30,478 0% 0% 0% 0% 100%
Current Law Benefit Type
Retired worker 0% 0% 6% 0% 100%
Widow(er) 0% 0% 2% 1% 99%
Spouse 0% 0% 12% 0% 100%
Disabled worker 0% 0% 2% 0% 100%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v1
Notes: . . . = not applicable; — = sample size is too small.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 2. Household income changes, 2030: Remove Taxable Maximum vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Income Higher Income Lower Income Higher Income
Total 0% 0% 3% 0% 0% 44%
Sex
Female 0% 0% 3% 0% 0% 46%
Male 0% 0% 3% 0% 0% 42%
Ethnicity/Race
Hispanic 0% 0% 1% 0% 0% 45%
White 0% 0% 3% 0% 0% 43%
Black 0% 0% 1% 0% 0% 47%
Other 0% 0% 5% 0% 0% 50%
Country of Birth
U.S. 0% 0% 3% 0% 0% 42%
Foreign 0% 0% 4% 0% 52%
Age
60-69 0% 0% 5% 0% 0% 46%
70-79 0% 0% 3% 0% 0% 41%
80-89 0% 0% 0% 0% 0% 41%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 4% 0% 0% 42%
Divorced 0% 0% 2% 0% 0% 48%
Widowed 0% 0% 1% 0% 0% 47%
Never Married 0% 0% 2% 0% 51%
Education
Graduate 0% 0% 8% 0% 0% 44%
Bachelor 0% 0% 6% 0% 0% 43%
Associate 0% 0% 2% 0% 0% 42%
High School 0% 0% 1% 0% 0% 42%
Less than 12 Yrs 0% 0% 1% 0% 72%
Official Poverty
Above poverty 0% 0% 3%
In poverty 0% 0% 0%
Household Income Quintile
$175,526+ 0% 0% 7% 0% 0% 34%
$97,521 - $175,526 0% 0% 4% 0% 0% 47%
$57,224 - $97,521 0% 0% 2% 0% 61%
$30,478 - $57,224 0% 0% 1% 0% 76%
$0-$30,478 0% 0% 0% 0% 93%
Current Law Benefit Type
Retired worker 0% 0% 3% 0% 0% 40%
Widow(er) 0% 0% 1% 0% 52%
Spouse 0% 0% 6% 0% 52%
Disabled worker 0% 0% 2% 0% 64%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v1
Notes: . . . = not applicable; — = sample size is too small.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 3. Poverty, 2030: Remove Taxable Maximum vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic Poverty Rate Population Change (thousands)
Scheduled Option Change
Total 4.9% 4.9% 0.0% 0
Sex
Female 5.3% 5.3% 0.0% 0
Male 4.3% 4.3% 0.0% 0
Ethnicity/Race
Hispanic 8.8% 8.8% 0.0% 0
White 3.5% 3.5% 0.0% 0
Black 9.0% 9.0% 0.0% 0
Other 7.7% 7.7% 0.0% 0
Country of Birth
U.S. 4.2% 4.2% 0.0% 0
Foreign 8.8% 8.8% 0.0% 0
Age
60-69 5.7% 5.7% 0.0% 0
70-79 4.9% 4.9% 0.0% 0
80-89 3.8% 3.8% 0.0% 0
90+ 2.5% 2.5% 0.0% 0
Marital Status
Married 1.9% 1.9% 0.0% 0
Divorced 8.3% 8.3% 0.0% 0
Widowed 5.8% 5.8% 0.0% 0
Never Married 17.0% 17.0% 0.0% 0
Education
Graduate 1.4% 1.4% 0.0% 0
Bachelor 2.2% 2.2% 0.0% 0
Associate 3.6% 3.6% 0.0% 0
High School 6.1% 6.1% 0.0% 0
Less than 12 Yrs 13.9% 13.9% 0.0% 0
Official Poverty
Above poverty 0.0% 0.0% 0.0% 0
In poverty 100.0% 100.0% 0.0% 0
Household Income Quintile
$175,526+ 0.1% 0.1% 0.0% 0
$97,521 - $175,526 0.1% 0.1% 0.0% 0
$57,224 - $97,521 0.3% 0.3% 0.0% 0
$30,478 - $57,224 0.8% 0.8% 0.0% 0
$0-$30,478 23.0% 23.0% 0.0% 0
Current Law Benefit Type
Retired worker 4.6% 4.6% 0.0% 0
Widow(er) 5.0% 5.0% 0.0% 0
Spouse 5.5% 5.5% 0.0% 0
Disabled worker 8.5% 8.5% 0.0% 0
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v1
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 4. Beneficiary characteristics, 2030: Remove Taxable Maximum vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All beneficiaries Affected beneficiaries Beneficiaries with lower benefits Beneficiaries with higher benefits
Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent
Total 73,810 100.0 4,523 100.0 3 100.0 4,519 100.0
Sex
Female 39,993 54.2 1,884 41.7 3 100.0 1,881 41.6
Male 33,817 45.8 2,638 58.3 . . . . . . 2,638 58.4
Ethnicity/Race
Hispanic 7,865 10.7 198 4.4 . . . . . . 198 4.4
White 54,004 73.2 3,780 83.6 3 100.0 3,777 83.6
Black 7,559 10.2 146 3.2 . . . . . . 146 3.2
Other 4,382 5.9 398 8.8 . . . . . . 398 8.8
Country of Birth
U.S. 62,372 84.5 3,772 83.4 3 100.0 3,769 83.4
Foreign 11,438 15.5 751 16.6 . . . . . . 751 16.6
Age
60-69 24,505 33.2 2,420 53.5 3 100.0 2,416 53.5
70-79 31,533 42.7 2,038 45.1 . . . . . . 2,038 45.1
80-89 14,979 20.3 65 1.4 . . . . . . 65 1.4
90+ 2,793 3.8 . . . . . . . . . . . . . . . . . .
Marital Status
Married 41,785 56.6 3,271 72.3 . . . . . . 3,271 72.4
Divorced 13,632 18.5 640 14.2 . . . . . . 640 14.2
Widowed 12,828 17.4 393 8.7 3 100.0 390 8.6
Never Married 5,566 7.5 218 4.8 . . . . . . 218 4.8
Education
Graduate 8,636 11.7 1,408 31.1 . . . . . . 1,408 31.2
Bachelor 13,936 18.9 1,801 39.8 . . . . . . 1,801 39.9
Associate 16,752 22.7 661 14.6 3 100.0 658 14.5
High School 28,256 38.3 574 12.7 . . . . . . 574 12.7
Less than 12 Yrs 6,230 8.4 78 1.7 . . . . . . 78 1.7
Official Poverty
Above poverty 70,205 95.1 4,521 100.0 3 100.0 4,518 100.0
In poverty 3,604 4.9 2 0.0 . . . . . . 2 0.0
Household Income Quintile
$175,526+ 14,762 20.0 2,574 56.9 3 100.0 2,571 56.9
$97,521 - $175,526 14,762 20.0 1,092 24.1 . . . . . . 1,092 24.2
$57,224 - $97,521 14,763 20.0 553 12.2 . . . . . . 553 12.2
$30,478 - $57,224 14,759 20.0 241 5.3 . . . . . . 241 5.3
$0-$30,478 14,763 20.0 62 1.4 . . . . . . 62 1.4
Current Law Benefit Type
Retired worker 51,869 70.3 3,355 74.2 . . . . . . 3,355 74.2
Widow(er) 12,154 16.5 276 6.1 3 100.0 273 6.0
Spouse 6,571 8.9 819 18.1 . . . . . . 819 18.1
Disabled worker 3,215 4.4 74 1.6 . . . . . . 74 1.6
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v1
Note: . . . = not applicable.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 5. Beneficiary Status, 2030: Remove Taxable Maximum vs. Scheduled (in thousands)
POPULATION: current law or option beneficiaries aged 60+
Characteristic Current Law Beneficiaries Changes in beneficiary status under proposed option Policy Option Beneficiaries
Added Removed Net Change
Total 73,810 0 73,819
Sex
Female 39,993 0 39,998
Male 33,817 0 33,821
Ethnicity/Race
Hispanic 7,865 0 0 7,866
White 54,004 0 54,012
Black 7,559 0 0 7,559
Other 4,382 0 0 4,382
Country of Birth
U.S. 62,372 0 62,376
Foreign 11,438 0 11,443
Age
60-69 24,505 0 24,514
70-79 31,533 0 0 31,533
80-89 14,979 0 0 14,979
90+ 2,793 0 0 2,793
Marital Status
Married 41,785 0 41,792
Divorced 13,632 0 0 13,632
Widowed 12,828 0 12,829
Never Married 5,566 0 0 5,566
Education
Graduate 8,636 0 8,642
Bachelor 13,936 0 13,938
Associate 16,752 0 0 16,753
High School 28,256 0 0 28,256
Less than 12 Yrs 6,230 0 0 6,230
Official Poverty
Above poverty 70,205 0 70,214
In poverty 3,604 0 0 3,604
Household Income Quintile
$175,526+ 14,762 0 14,766
$97,521 - $175,526 14,762 0 14,768
$57,224 - $97,521 14,763 0 0 14,763
$30,478 - $57,224 14,759 0 0 14,759
$0-$30,478 14,763 0 0 14,763
Current Law Benefit Type
Retired worker 51,869 0 0 51,869
Widow(er) 12,154 0 0 12,154
Spouse 6,571 0 0 6,571
Disabled worker 3,215 0 0 3,215
None 0 0 9
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v1
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.