Appendix Table 4: The Impact of Potential OASI Reforms on Lifetime Net Tax Rates Non-White (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules -3.8 6.4 5.2 5.7 1 38% Tax Hike Beginning in Year 2000 -3.6 6.7 5.5 6.0 2 25% Benefit Cut Beginning in Year 2000 -.3 7.3 5.6 6.4 3 Acclerated Increase in NRA -1.6 7.0 5.6 6.3 4 CPI Indexing of Covered Earnings -2.4 6.7 5.3 6.0 5 Indexing Benefits by CPI Minus 1% -2.2 6.8 5.4 6.0 6 Stabilize Real Per Capita Benefits -2.1 6.8 5.4 6.1 7 Freeze Bend Points in Real Terms -3.4 6.5 5.3 5.8 8 Eliminate Earnings Ceiling -3.8 6.4 5.4 5.8 9 Eliminate Earnings Ceiling w/o Benefit Change -3.8 6.4 5.5 5.9 10 Increase Computation Years from 35 to 40 -3.1 6.5 5.3 5.8 Birth Cohort 1970-74 0 Current Rules -1.7 6.1 5.0 5.4 1 38% Tax Hike Beginning in Year 2000 .5 8.8 6.8 7.6 2 25% Benefit Cut Beginning in Year 2000 1.3 7.2 5.4 6.1 3 Acclerated Increase in NRA -.3 6.8 5.3 5.9 4 CPI Indexing of Covered Earnings -.6 6.4 5.1 5.7 5 Indexing Benefits by CPI Minus 1% -.3 6.5 5.2 5.7 6 Stabilize Real Per Capita Benefits 2.8 7.7 5.6 6.5 7 Freeze Bend Points in Real Terms -.9 6.5 5.3 5.8 8 Eliminate Earnings Ceiling -2.0 6.0 7.6 6.9 9 Eliminate Earnings Ceiling w/o Benefit Change -1.7 6.1 8.1 7.3 10 Increase Computation Years from 35 to 40 -1.1 6.2 5.1 5.5 Birth Cohort 1995-00 0 Current Rules -1.4 6.2 5.9 5.9 1 38% Tax Hike Beginning in Year 2000 2.4 10.0 8.8 9.2 2 25% Benefit Cut Beginning in Year 2000 1.5 7.2 6.3 6.6 3 Acclerated Increase in NRA .0 6.8 6.2 6.4 4 CPI Indexing of Covered Earnings -.2 6.5 6.0 6.2 5 Indexing Benefits by CPI Minus 1% -.1 6.5 6.1 6.2 6 Stabilize Real Per Capita Benefits 6.8 9.2 7.1 8.0 7 Freeze Bend Points in Real Terms .2 6.9 6.3 6.5 8 Eliminate Earnings Ceiling -1.7 6.1 8.4 7.3 9 Eliminate Earnings Ceiling w/o Benefit Change -1.4 6.2 8.8 7.5 10 Increase Computation Years from 35 to 40 -.8 6.3 6.0 6.0 ____________________________________________________________________________ Source: Author's calculations.