Restructure Social Security: Policy Options #1 —
Combining Raising Retirement Age + Reducing Benefits + Raising Tax Rates
Consider:
1) Increase retirement age by 0-9% and/or
2) Reduce social security benefits by 0-12%? and/or
3) Increase social security tax rate from 12.4% to 14.2%? and/or
4) Combination of some / all of the above & more?
KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 261
Restructure Social Security: Policy Options From the Congressional Budget Office (CBO) to Reduce Social Security Future Deficits By
1) Changing Tax Codes"
Future Deficit
Policy Options Reduction? (%)
2% gradually over a 20-year period 100% Increase Payroll Tax 3% gradually over a 60-year period 83 Rate by ... 1% in 2012 50 No limit, without Increasing benefits 150% No limit 100 Raise the Taxable Earnings Limit’ to ... $250,000, without Increasing benefits 83 90% of earnings 33 $106,800, without Increasing benefits 50% Impose 4% Tax on Earnings Above ... $250,000, without Increasing benefits 17
Note: 1) Benefits are adjusted as taxation is changed, unless specified otherwise 2) As % of the estimated present value of Social Security trust fund cumulative deficit in future 75 years. 3) Currently at $106,800
KP Source: CBO, “Social Security Options 2010.” (@E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 262
HOUSE_OVERSIGHT_020972