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Restructure Social Security: Policy Options #1 — Combining Raising Retirement Age + Reducing Benefits + Raising Tax Rates Consider: 1) Increase retirement age by 0-9% and/or 2) Reduce social security benefits by 0-12%? and/or 3) Increase social security tax rate from 12.4% to 14.2%? and/or 4) Combination of some / all of the above & more? KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 261 Restructure Social Security: Policy Options From the Congressional Budget Office (CBO) to Reduce Social Security Future Deficits By 1) Changing Tax Codes’ Future Deficit Policy Options Reduction? (%) 2% gradually over a 20-year period 100% Increase Payroll Tax 3% gradually over a 60-year period 83 Rate by ... 1% in 2012 50 No limit, without Increasing benefits 150% No limit 100 Raise the Taxable Earnings Limit’ to ... $250,000, without Increasing benefits 83 90% of earnings 33 $106,800, without Increasing benefits 50% Impose 4% Tax on Earnings Above ... $250,000, without Increasing benefits 17 Note: 1) Benefits are adjusted as taxation is changed, unless specified otherwise 2) As % of the estimated present value of Social Security trust fund cumulative deficit in future 75 years. 3) Currently at $106,800 KP Source: CBO, “Social Security Options 2010.” (@ EB) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 262 HOUSE_OVERSIGHT_020972