Jump to content

File:CBO - Effect of Policy options on Social Security.png

Page contents not supported in other languages.
This is a file from the Wikimedia Commons
From Wikipedia, the free encyclopedia

Original file (960 × 720 pixels, file size: 316 KB, MIME type: image/png)

Summary

Description
English: CBO Report - Effect of Policy Options on Social Security - July 2010

Understanding the Chart

The CBO reported in July 2010 the effects of a series of policy options on the "actuarial balance" shortfall, which over the 75 year horizon is approximately 0.6% of GDP. This is slightly different from the 0.7% estimated by the Social Security Trustees. For example, CBO estimates that raising the payroll tax by two percentage points (from 12.4% to 14.4%) would increase program revenues by 0.6% of GDP, solving the 75-year shortfall. The various impacts are summarized in the chart, taken from page XI of its report (PDF page 13). The following text is also from page XI of the report, to explain acronyms in the chart: "The actuarial balance is the present value of revenues plus the OASDI trust fund balance at the beginning of 2010, minus the present value of outlays from 2010 to 2084, minus a year’s worth of benefits as a reserve at the end of the period, expressed as a percentage of the present value of GDP over the period. The AIME for a retired worker who reaches age 62 after 1990 is calculated on the highest 35 years of earnings on which that worker paid Social Security taxes (up to the taxable maximum, $106,800 in 2010). Earnings before age 60 are indexed to compensate for inflation and for real (inflation-adjusted) growth in wages; earnings after age 59 enter the computations at nominal values. Dividing total earnings by 420 (35 years times 12 months) yields the AIME. The PIA is the monthly payment to a worker who begins receiving retirement benefits at the full retirement age or to a disabled worker who has never received a retirement benefit reduced for age. For workers who turn 62, become disabled, or die in 2010 (for calculation of survivor benefits), the PIA formula is 90 percent of the first $761 of the AIME plus 32 percent of the AIME between $761 and $4,586 plus 15 percent of the AIME over $4,586. Those percentages constitute the PIA factors. A COLA is an annual increase in benefits indexed to consumer prices. Under current law, the COLA equals the percentage increase in the CPI-W; the chained CPI-U is an alternative measure of inflation. OASDI = Old-Age, Survivors, and Disability Insurance; GDP = gross domestic product; AIME = average indexed monthly earnings; PIA = primary insurance amount; FRA = full retirement age; COLA = cost-of-living adjustment; CPI-W = consumer price index for all urban wage earners and clerical workers; chained CPI-U = chained CPI for all urban consumers; * = between -0.05 percentage points and zero."

Sources

Source http://www.cbo.gov/ftpdocs/115xx/doc11580/07-01-SSOptions_forWeb.pdf
Author Congressional Budget Office
This graph image could be re-created using vector graphics as an SVG file. This has several advantages; see Commons:Media for cleanup for more information. If an SVG form of this image is available, please upload it and afterwards replace this template with {{vector version available|new image name}}.


It is recommended to name the SVG file “CBO - Effect of Policy options on Social Security.svg”—then the template Vector version available (or Vva) does not need the new image name parameter.

Licensing

Public domain
This United States Congress image is in the public domain. This may be because it was taken by an employee of the Congress as part of that person’s official duties, or because it has been released into the public domain and posted on the official websites of a member of Congress. As a work of the U.S. federal government, the image is in the public domain.

English  Nederlands  русский  македонски  español  українська  日本語  中文  中文(简体)  中文(繁體)  العربية  +/−


Original upload log

The original description page was here. All following user names refer to en.wikipedia.
Date/Time Dimensions User Comment
2010-07-29 03:44 960×720× (323864 bytes) Farcaster {{Information |Description = CBO Report - Effect of Policy Options on Social Security - July 2010 |Source = http://www.cbo.gov/ftpdocs/115xx/doc11580/07-01-SSOptions_forWeb.pdf |Date = ~~~~~ |Author = [[Congressional Budge

Captions

Add a one-line explanation of what this file represents

Items portrayed in this file

depicts

image/png

3753a485ac59cbc7111a2bf61f9addee27766c59

323,864 byte

720 pixel

960 pixel

File history

Click on a date/time to view the file as it appeared at that time.

Date/TimeThumbnailDimensionsUserComment
current23:22, 29 March 2016Thumbnail for version as of 23:22, 29 March 2016960 × 720 (316 KB)FastilyCloneTransferred from enwp

Metadata