[20040120]97-116_社会保障：提高或消除应税收入基数.pdf

1 This report was written by former CRS staffer Geoffrey Kollmann.Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code 97-116 EPWUpdated January 20, 2004Social Security: Raising or Eliminatingthe Taxable Earnings BaseLaura HaltzelSpecialist in Social LegislationDomestic Social Policy DivisionSummarySocial Security taxes are levied on earnings up to a maximum level set each year.In 2004, this maximum or what is referred to as the taxable earnings base is$87,900. There is no similar base for the Medicare Hospital Insurance (HI) portion ofthe tax; all earnings are taxable for HI purposes. Elimination of the HI base wasproposed by President Clinton and enacted in 1993, effectively beginning in 1994.Recently others have proposed that the base for Social Security be raised or eliminatedas well. They complain that taxing earnings only up to a certain level creates aregressive tax. They point out that the 94% of all workers whose earnings fall belowthis level have a greater proportion of earnings taxed than the 6% whose earnings exceedit. They contend that the revenues generated by raising the level estimated at almost$100 bill