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Summary Measures and Graphs

Description of Proposed Provision:
Make 90% of the earnings subject to the payroll tax (phased in 2010-2019). In addition, apply a tax rate of 6.2 percent for earnings above the revised taxable maximum, phased in from 2010-2019. This additional tax rate would be paid by employers on wages of their employees, and by self-employed workers on their earnings. Benefit computations for workers would only reflect earnings below the revised taxable maximum.

Estimates based on the intermediate assumptions of the 2009 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law 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
Long-range
actuarial
balance
Annual
balance in
75th year
-2.00 -4.34 1.37 1.36 -0.63 -2.98


graph of OASDI cost rates and income rates by year, under
                 present law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under present law
                 and provision. click on graph to view underlying data.
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Last reviewed or modified June 11, 2010