CATEGORY: TAXATION CHANGES
PROPOSAL:Increase the earnings subject to taxation: Make 90% of earnings subject to the Social Security payroll tax, include these earnings in benefit computations, and phase in from 2014 to 2023

Projected effects on beneficiaries in 2030

Table 1. Individual benefit changes, 2030: Increase Taxable Maximum to 90% 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% 3% 0% 100%
Sex
Female 0% 0% 2% 0% 100%
Male 0% 0% 4% 0% 100%
Ethnicity/Race
Hispanic 0% 0% 1% 0% 100%
White 0% 0% 4% 0% 100%
Black 0% 0% 1% 0% 100%
Other 0% 0% 5% 0% 100%
Country of Birth
U.S. 0% 0% 3% 0% 100%
Foreign 0% 0% 4% 0% 100%
Age
60-69 0% 0% 5% 0% 100%
70-79 0% 0% 3% 0% 100%
80-89 0% 0% 0% 0% 100%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 4% 0% 100%
Divorced 0% 0% 2% 0% 100%
Widowed 0% 0% 2% 0% 100%
Never Married 0% 0% 2% 0% 100%
Education
Graduate 0% 0% 9%
Bachelor 0% 0% 7%
Associate 0% 0% 2%
High School 0% 0% 1%
Less than 12 Yrs 0% 0% 1%
Official Poverty
Above poverty 0% 0% 3% 0% 100%
In poverty 0% 0% 0% . . . . . .
Household Income Quintile
$175,526+ 0% 0% 10%
$97,521 - $175,526 0% 0% 3%
$57,224 - $97,521 0% 0% 2%
$30,478 - $57,224 0% 0% 1%
$0-$30,478 0% 0% 0%
Current Law Benefit Type
Retired worker 0% 0% 3%
Widow(er) 0% 0% 1%
Spouse 0% 0% 7%
Disabled worker 0% 0% 1%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v2
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: Increase Taxable Maximum to 90% 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% 1% 0% 0% 22%
Sex
Female 0% 0% 1% 0% 0% 24%
Male 0% 0% 1% 0% 0% 20%
Ethnicity/Race
Hispanic 0% 0% 0% 0% 0% 24%
White 0% 0% 1% 0% 0% 22%
Black 0% 0% 0% 0% 0% 21%
Other 0% 0% 1% 0% 0% 23%
Country of Birth
U.S. 0% 0% 1% 0% 0% 21%
Foreign 0% 0% 1% 0% 0% 25%
Age
60-69 0% 0% 1% 0% 0% 25%
70-79 0% 0% 1% 0% 0% 19%
80-89 0% 0% 0% 0% 0% 4%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 1% 0% 0% 20%
Divorced 0% 0% 1% 0% 0% 30%
Widowed 0% 0% 0% 0% 0% 25%
Never Married 0% 0% 1% 0% 0% 24%
Education
Graduate 0% 0% 2%
Bachelor 0% 0% 1%
Associate 0% 0% 1%
High School 0% 0% 0%
Less than 12 Yrs 0% 0% 0%
Official Poverty
Above poverty 0% 0% 1% 0% 0% 22%
In poverty 0% 0% 0% . . . . . .
Household Income Quintile
$175,526+ 0% 0% 1%
$97,521 - $175,526 0% 0% 1%
$57,224 - $97,521 0% 0% 1%
$30,478 - $57,224 0% 0% 0%
$0-$30,478 0% 0% 0%
Current Law Benefit Type
Retired worker 0% 0% 1%
Widow(er) 0% 0% 1%
Spouse 0% 0% 2%
Disabled worker 0% 0% 1%
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v2
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: Increase Taxable Maximum to 90% 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 #: SSAB0331v2
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: Increase Taxable Maximum to 90% 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 2,345 100.0 . . . . . . 2,345 100.0
Sex
Female 39,993 54.2 980 41.8 . . . . . . 980 41.8
Male 33,817 45.8 1,365 58.2 . . . . . . 1,365 58.2
Ethnicity/Race
Hispanic 7,865 10.7 93 4.0 . . . . . . 93 4.0
White 54,004 73.2 1,941 82.8 . . . . . . 1,941 82.8
Black 7,559 10.2 74 3.1 . . . . . . 74 3.1
Other 4,382 5.9 237 10.1 . . . . . . 237 10.1
Country of Birth
U.S. 62,372 84.5 1,888 80.5 . . . . . . 1,888 80.5
Foreign 11,438 15.5 457 19.5 . . . . . . 457 19.5
Age
60-69 24,505 33.2 1,232 52.6 . . . . . . 1,232 52.6
70-79 31,533 42.7 1,073 45.8 . . . . . . 1,073 45.8
80-89 14,979 20.3 39 1.7 . . . . . . 39 1.7
90+ 2,793 3.8 . . . . . . . . . . . . . . . . . .
Marital Status
Married 41,785 56.6 1,718 73.2 . . . . . . 1,718 73.2
Divorced 13,632 18.5 314 13.4 . . . . . . 314 13.4
Widowed 12,828 17.4 195 8.3 . . . . . . 195 8.3
Never Married 5,566 7.5 118 5.1 . . . . . . 118 5.1
Education
Graduate 8,636 11.7 796 33.9 . . . . . . 796 33.9
Bachelor 13,936 18.9 939 40.0 . . . . . . 939 40.0
Associate 16,752 22.7 326 13.9 . . . . . . 326 13.9
High School 28,256 38.3 248 10.6 . . . . . . 248 10.6
Less than 12 Yrs 6,230 8.4 36 1.5 . . . . . . 36 1.5
Official Poverty
Above poverty 70,205 95.1 2,345 100.0 . . . . . . 2,345 100.0
In poverty 3,604 4.9 . . . . . . . . . . . . . . . . . .
Household Income Quintile
$175,526+ 14,762 20.0 1,500 64.0 . . . . . . 1,500 64.0
$97,521 - $175,526 14,762 20.0 475 20.2 . . . . . . 475 20.2
$57,224 - $97,521 14,763 20.0 248 10.6 . . . . . . 248 10.6
$30,478 - $57,224 14,759 20.0 91 3.9 . . . . . . 91 3.9
$0-$30,478 14,763 20.0 31 1.3 . . . . . . 31 1.3
Current Law Benefit Type
Retired worker 51,869 70.3 1,692 72.1 . . . . . . 1,692 72.1
Widow(er) 12,154 16.5 148 6.3 . . . . . . 148 6.3
Spouse 6,571 8.9 464 19.8 . . . . . . 464 19.8
Disabled worker 3,215 4.4 42 1.8 . . . . . . 42 1.8
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v2
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: Increase Taxable Maximum to 90% 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 73,813
Sex
Female 39,993 0 39,995
Male 33,817 0 0 33,818
Ethnicity/Race
Hispanic 7,865 0 0 7,866
White 54,004 0 54,006
Black 7,559 0 0 7,559
Other 4,382 0 0 4,382
Country of Birth
U.S. 62,372 0 62,373
Foreign 11,438 0 11,439
Age
60-69 24,505 0 24,508
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 41,786
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 8,637
Bachelor 13,936 0 0 13,937
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 70,208
In poverty 3,604 0 0 3,604
Household Income Quintile
$175,526+ 14,762 0 14,765
$97,521 - $175,526 14,762 0 0 14,763
$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 3
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0331v2
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.