Appendix Table 3: The Impact of Potential OASI Reforms on Lifetime Net Tax Rates White (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules -4.3 6.1 4.9 5.3 1 38% Tax Hike Beginning in Year 2000 -3.9 6.4 5.3 5.6 2 25% Benefit Cut Beginning in Year 2000 -.2 7.1 5.3 6.0 3 Acclerated Increase in NRA -1.7 6.9 5.3 5.9 4 CPI Indexing of Covered Earnings -3.0 6.4 5.0 5.5 5 Indexing Benefits by CPI Minus 1% -2.5 6.5 5.1 5.6 6 Stabilize Real Per Capita Benefits -2.3 6.5 5.1 5.6 7 Freeze Bend Points in Real Terms -3.8 6.2 5.0 5.4 8 Eliminate Earnings Ceiling -4.5 6.1 5.3 5.5 9 Eliminate Earnings Ceiling w/o Benefit Change -4.3 6.1 5.4 5.6 10 Increase Computation Years from 35 to 40 -3.5 6.2 5.0 5.4 Birth Cohort 1970-74 0 Current Rules -3.8 5.7 5.3 5.4 1 38% Tax Hike Beginning in Year 2000 -1.4 8.3 7.2 7.6 2 25% Benefit Cut Beginning in Year 2000 -.3 6.8 5.7 6.1 3 Acclerated Increase in NRA -1.9 6.4 5.6 5.9 4 CPI Indexing of Covered Earnings -2.5 6.0 5.4 5.6 5 Indexing Benefits by CPI Minus 1% -2.2 6.1 5.5 5.7 6 Stabilize Real Per Capita Benefits 1.7 7.5 5.9 6.5 7 Freeze Bend Points in Real Terms -2.5 6.2 5.5 5.8 8 Eliminate Earnings Ceiling -4.5 5.6 7.7 6.9 9 Eliminate Earnings Ceiling w/o Benefit Change -3.8 5.7 8.2 7.3 10 Increase Computation Years from 35 to 40 -2.9 5.8 5.4 5.5 Birth Cohort 1995-00 0 Current Rules -3.3 5.3 5.3 5.2 1 38% Tax Hike Beginning in Year 2000 .5 9.1 7.9 8.3 2 25% Benefit Cut Beginning in Year 2000 .1 6.5 5.7 5.9 3 Acclerated Increase in NRA -1.6 6.0 5.5 5.7 4 CPI Indexing of Covered Earnings -2.1 5.7 5.4 5.5 5 Indexing Benefits by CPI Minus 1% -1.9 5.7 5.4 5.5 6 Stabilize Real Per Capita Benefits 6.8 9.0 6.5 7.3 7 Freeze Bend Points in Real Terms -1.2 6.2 5.6 5.8 8 Eliminate Earnings Ceiling -3.7 5.3 8.2 7.1 9 Eliminate Earnings Ceiling w/o Benefit Change -3.3 5.3 8.7 7.4 10 Increase Computation Years from 35 to 40 -2.5 5.5 5.3 5.3 ____________________________________________________________________________ Source: Author's calculations.