## Provisions Affecting Coverage of Employment or Earnings,         or Inclusion of Other Sources of Revenue

- Office of the Chief Actuary
- Individual Provisions

          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           2023 Trustees Report.         

          Choose the type of estimates (summary or detailed) from          the list of provisions.         

| Number | Table and graph selection                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| F1     | Starting in 2024, 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:- Fiscal Commission 2010
- Bipartisan Policy Center 2010
- Warshawsky 2008
- Social Security Advisory Board 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| F2     | Starting in 2024, 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:- Warshawsky 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| F3     | Expand covered earnings to include employer and employee premiums for employer-sponsored         group health insurance (ESI). Starting in 2027, phase out the OASDI payroll tax exclusion         for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution         in 2027, with amounts above that subject to the payroll tax. Reduce the exclusion level         each year by 10 percent of the 2027 exclusion level until fully eliminated in 2037.              Summary measures and graphs         (PDF version)       Detailed single year tables          (PDF version)       Memorandum containing this or a similar provision:- Bipartisan Policy Center 2010                                                                                                                                                            |
| F4     | Expand covered earnings to include contributions to voluntary salary reduction         plans (such as Cafeteria 125 plans and Flexible Spending Accounts). Starting in         2024, 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:- Bipartisan Policy Center 2010                                                                                                                                                                                                                                                                                                              |
| F6     | Apply a separate 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 2025. 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:- Sanders, DeFazio 2019
- Sanders, DeFazio 2017
- Sanders 2016
- Sanders 2015                                                                                                                                                                                                                                                                                                       |
| 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 2023 and gifts made after 2023, 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:- Van Hollen 2019                                                                                                                                                                                                          |
| F8     | For active S-corporation officers and limited partners, apply a 16.2 percent        tax on investment income as defined in the ACA, with unindexed thresholds as        in the ACA ($200,000 single filer, $250,000 for married filing joint), starting        in 2024. Proceeds go to the OASDI Trust Funds for tax attributable to 12.4 percent        of the total 16.2 percent tax rate.              Summary measures and graphs         (PDF version)       Detailed single year tables          (PDF version)       Memoranda containing this or a similar provision:- Sanders 2023
- Sanders, DeFazio 2022                                                                                                                                                                                                                                                |
| F9     | Apply a separate 12.4 percent tax on investment income as defined in the        Affordable Care Act (ACA), with unindexed thresholds as in the ACA ($200,000        single filer, $250,000 for married filing joint), starting in 2025. Proceeds        go to the OASDI Trust Funds.              Summary measures and graphs         (PDF version)       Detailed single year tables          (PDF version)       Memoranda containing this or a similar provision:- Sanders 2023
- Sanders, DeFazio 2022                                                                                                                                                                                                                                                                                                                                                         |
| F10    | Expand the tax on net investment income (NII) as defined in the Affordable        Care Act (ACA) to cover earnings from active S corporation holders and active        limited partners. Apply a 12.4-percent tax on this expanded definition of        NII, payable to the OASI and DI Trust Funds with specified thresholds, effective        for 2024 and later. The unindexed thresholds for this provision are $400,000        for a single filer and $500,000 for a married couple filing jointly. The NII        tax would apply to the lesser of NII and the excess of modified adjusted income        (MAGI) above the unindexed thresholds.              Summary measures and graphs         (PDF version)       Detailed single year tables          (PDF version)       Memorandum containing this or a similar provision:- Whitehouse, Boyle 2023 |
| F11    | Apply a separate 12.4-percent tax on net investment income (NII), as defined        in the Affordable Care Act (ACA), payable to the OASI and DI Trust Funds with        an unindexed threshold of $400,000, effective 2025 and later. The NII tax would        apply to the lesser of NII and the excess of modified adjusted income (MAGI)        above the unindexed threshold of $400,000. This single threshold would apply        regardless of tax filing status.              Summary measures and graphs         (PDF version)       Detailed single year tables          (PDF version)       Memorandum containing this or a similar provision:- Larson 2023                                                                                                                                                                                           |
|        | Summary list of all options in this category                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |