Appendix Table 21: The Impact of Potential OASI Reforms on Implicit Wealth Tax Rates College (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules -51.2 56.0 76.2 67.5 1 38% Tax Hike Beginning in Year 2000 -47.8 57.5 77.3 68.8 2 25% Benefit Cut Beginning in Year 2000 -12.8 67.2 82.2 75.7 3 Acclerated Increase in NRA -26.9 64.4 82.2 74.7 4 CPI Indexing of Covered Earnings -40.0 59.4 77.7 69.8 5 Indexing Benefits by CPI Minus 1% -34.6 60.6 78.5 70.7 6 Stabilize Real Per Capita Benefits -33.4 61.3 79.0 71.4 7 Freeze Bend Points in Real Terms -46.5 57.6 77.3 68.7 8 Eliminate Earnings Ceiling -55.2 55.8 75.8 67.5 9 Eliminate Earnings Ceiling w/o Benefit Change -51.2 56.1 78.0 69.0 10 Increase Computation Years from 35 to 40 -44.7 57.8 76.9 68.7 Birth Cohort 1970-74 0 Current Rules -42.2 52.6 78.6 68.5 1 38% Tax Hike Beginning in Year 2000 -16.7 62.3 83.2 75.2 2 25% Benefit Cut Beginning in Year 2000 -6.5 64.7 84.0 76.5 3 Acclerated Increase in NRA -23.7 60.6 82.4 73.9 4 CPI Indexing of Covered Earnings -30.0 56.6 80.0 71.1 5 Indexing Benefits by CPI Minus 1% -25.9 57.5 80.7 71.8 6 Stabilize Real Per Capita Benefits 13.1 71.5 87.0 81.0 7 Freeze Bend Points in Real Terms -29.4 58.3 81.5 72.5 8 Eliminate Earnings Ceiling -53.1 51.7 80.2 71.6 9 Eliminate Earnings Ceiling w/o Benefit Change -42.2 52.7 85.9 75.8 10 Increase Computation Years from 35 to 40 -32.9 54.4 79.0 69.6 Birth Cohort 1995-00 0 Current Rules -49.5 53.4 77.0 66.4 1 38% Tax Hike Beginning in Year 2000 -8.4 66.2 83.3 75.6 2 25% Benefit Cut Beginning in Year 2000 -11.9 65.4 82.8 74.9 3 Acclerated Increase in NRA -31.2 60.5 80.6 71.5 4 CPI Indexing of Covered Earnings -35.8 57.3 78.5 69.1 5 Indexing Benefits by CPI Minus 1% -33.4 57.8 79.2 69.7 6 Stabilize Real Per Capita Benefits 61.9 88.7 94.3 91.7 7 Freeze Bend Points in Real Terms -25.5 62.2 82.0 73.4 8 Eliminate Earnings Ceiling -54.7 53.2 79.8 70.8 9 Eliminate Earnings Ceiling w/o Benefit Change -49.3 53.6 85.5 75.0 10 Increase Computation Years from 35 to 40 -41.4 55.3 77.4 67.5 ____________________________________________________________________________ Source: Author's calculations.