Steady and growing erosion of Social Security tax base: Revenue lost to Social Security relative to scenario where 90% of earnings were subject to Social Security taxes, % of total taxes collected, 1983–2021
| % total taxes collected | |
|---|---|
| 1983 | 0.0% |
| 1984 | 0.8% |
| 1985 | 1.2% |
| 1986 | 1.6% |
| 1987 | 2.7% |
| 1988 | 4.9% |
| 1989 | 3.7% |
| 1990 | 3.2% |
| 1991 | 2.5% |
| 1992 | 3.7% |
| 1993 | 3.2% |
| 1994 | 3.3% |
| 1995 | 4.9% |
| 1996 | 5.0% |
| 1997 | 5.8% |
| 1998 | 6.5% |
| 1999 | 7.3% |
| 2000 | 8.2% |
| 2001 | 6.3% |
| 2002 | 4.5% |
| 2003 | 4.8% |
| 2004 | 6.1% |
| 2005 | 7.0% |
| 2006 | 7.9% |
| 2007 | 9.0% |
| 2008 | 7.7% |
| 2009 | 5.6% |
| 2010 | 7.0% |
| 2011 | 7.7% |
| 2012 | 8.7% |
| 2013 | 7.7% |
| 2014 | 8.3% |
| 2015 | 8.6% |
| 2016 | 8.3% |
| 2017 | 7.8% |
| 2018 | 8.2% |
| 2019 | 7.8% |
| 2020 | 8.8% |
| 2021 | 10.6% |
Notes: Author’s calculations using data from SSA (2022). The lost revenue is calculated by subtracting the current share of earnings subject to Social Security taxes from 90%. This amount is then multiplied by aggregate earnings, and then by 12.4% (the combined Social Security tax rate on employees and employers). The resulting sum is then divided by 12.4% multiplied by the Social Security earnings base (essentially a measure of total revenue collected by Social Security through the payroll tax).
Source: Annual Statistical Supplement 2022, Table 4.B1, Social Security Administration.