Number: RL33943
Title: Increasing the Social Security Payroll Tax Base: Options and Effects on Tax Burdens
Authors: Thomas L. Hungerford, Government and Finance Division 
Abstract: Although most analysts advocate raising the maximum taxable limit to increase revenues for the Social Security program, some would use the increased revenues for other purposes. For example, one analyst suggested reducing the payroll tax rate and keeping it revenue-neutral by raising the maximum taxable limit. This change would provide payroll tax relief to low- and middle-income workers. This report examines changes in the distribution of the tax burden of three policies involving raising the Social Security maximum taxable limit.
Pages: 10
Date: April 6, 2007