TABLE C-5 Annual Social Security Payroll Tax Projected to Be Paid, Selected Years Current Law and Options 1-4, Various Illustrative Earning Levels (in 2009 dollars except as noted)

Selected Years

Current Law

Option 1a

Option 2b

Option 3c

Option 4d

Memo: Earnings (Current Dollars)

Average Wage Worker (about $42,000 in 2009 dollars)

2010

5,295

5,295

5,295

5,295

5,295

42,702

2020

5,919

5,919

6,158

6,158

6,062

47,733

2035

6,923

6,923

7,314

7,426

7,258

55,832

2050

8,146

8,146

8,869

9,066

8,738

65,696

2065

9,557

9,557

10,251

11,099

10,790

77,073

2082

11,458

11,458

12,290

13,399

13,584

92,405

High-Wage Worker ($67,300 in 2009 dollars)

2010

8,481

8,481

8,481

8,481

8,481

68,391

2020

9,480

9,480

9,862

9,862

9,709

76,450

2035

11,088

11,088

11,714

11,893

11,625

89,420

2050

13,047

13,047

14,205

14,520

13,994

105,219

2065

15,307

15,307

16,418

17,775

17,282

123,440

2082

18,351

18,351

19,683

21,459

21,755

147,995

Tax Maximum Worker (max under current law, $106,800 in 2009 dollars)

2010

13,028

13,028

13,028

13,028

13,028

105,063

2020

14,522

14,522

15,107

15,107

14,873

117,110

2035

16,955

16,955

17,912

18,185

17,775

136,731

2050

19,960

19,960

21,730

22,213

21,408

160,964

2065

23,415

23,415

25,115

27,192

26,437

188,835

2082

28,073

28,073

30,110

32,827

33,280

226,392

Very High Wage Worker ($200,000 in 2009 dollars)

2010

13,028

13,028

13,028

13,028

13,028

203,343

2020

14,522

14,522

15,107

17,311

19,521

227,302

2035

16,955

16,955

17,912

20,768

29,965

265,867

2050

19,960

19,960

21,730

25,250

41,608

312,839

2065

23,415

23,415

25,115

32,538

51,382

367,015

2082

28,073

28,073

30,110

39,236

64,684

440,024

All estimates based on the intermediate assumptions of the 2009 Trustees Report.

aBenefit changes only.

b2/3 benefit growth reductions; 1/3 payroll tax increases.

c1/3 benefit growth reductions; 2/3 payroll tax increases.

dPayroll-tax increases only.

NOTES

  

1. “Present value” is a way to summarize various time paths of expected future cash flows into and out of the trust fund with a single number. The present value of these flows can be calculated by discounting those that are expected to occur in future years by the appropriate interest rate. For revenues, for example, this present value is in simple terms the sum that, invested at the stated interest rate, could generate that stream of future revenues.



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