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: 03/30/2015 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% 46%
White 0% 0% 3% 0% 0% 43%
Black 0% 0% 1% 0% 0% 48%
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% 2% 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% 73%
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% 94%
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: 03/30/2015 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: 03/30/2015 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 4,543 100.0 3 100.0 4,540 100.0
Sex
Female 39,993 54.2 1,905 41.9 3 100.0 1,901 41.9
Male 33,817 45.8 2,638 58.1 . . . . . . 2,638 58.1
Ethnicity/Race
Hispanic 7,865 10.7 202 4.5 . . . . . . 202 4.5
White 54,004 73.2 3,794 83.5 3 100.0 3,790 83.5
Black 7,559 10.2 149 3.3 . . . . . . 149 3.3
Other 4,382 5.9 398 8.8 . . . . . . 398 8.8
Country of Birth
U.S. 62,372 84.5 3,790 83.4 3 100.0 3,786 83.4
Foreign 11,438 15.5 754 16.6 . . . . . . 754 16.6
Age
60-69 24,505 33.2 2,440 53.7 3 100.0 2,437 53.7
70-79 31,533 42.7 2,038 44.8 . . . . . . 2,038 44.9
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 72.0 . . . . . . 3,271 72.0
Divorced 13,632 18.5 640 14.1 . . . . . . 640 14.1
Widowed 12,828 17.4 414 9.1 3 100.0 410 9.0
Never Married 5,566 7.5 218 4.8 . . . . . . 218 4.8
Education
Graduate 8,636 11.7 1,412 31.1 . . . . . . 1,412 31.1
Bachelor 13,936 18.9 1,805 39.7 . . . . . . 1,805 39.8
Associate 16,752 22.7 670 14.8 3 100.0 667 14.7
High School 28,256 38.3 576 12.7 . . . . . . 576 12.7
Less than 12 Yrs 6,230 8.4 81 1.8 . . . . . . 81 1.8
Official Poverty
Above poverty 70,205 95.1 4,542 100.0 3 100.0 4,538 100.0
In poverty 3,604 4.9 2 0.0 . . . . . . 2 0.0
Household Income Quintile
$175,526+ 14,762 20.0 2,578 56.7 3 100.0 2,575 56.7
$97,521 - $175,526 14,762 20.0 1,097 24.1 . . . . . . 1,097 24.2
$57,224 - $97,521 14,763 20.0 557 12.3 . . . . . . 557 12.3
$30,478 - $57,224 14,759 20.0 244 5.4 . . . . . . 244 5.4
$0-$30,478 14,763 20.0 68 1.5 . . . . . . 68 1.5
Current Law Benefit Type
Retired worker 51,869 70.3 3,355 73.8 . . . . . . 3,355 73.9
Widow(er) 12,154 16.5 296 6.5 3 100.0 293 6.5
Spouse 6,571 8.9 819 18.0 . . . . . . 819 18.0
Disabled worker 3,215 4.4 74 1.6 . . . . . . 74 1.6
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/30/2015 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: 03/30/2015 Ref #: SSAB0331v1
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.