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SSASIM input table MTE

Contains parameters that specify OASDI maximum taxable earnings and other parameters that can be used to represent various taxable earnings reforms.

Parent table is: RUN

There are no child tables.

Go to SSASIM input parameters overview

SSASIM:   MTE . id
Identifies set of maximum taxable earnings policy parameters, so id value should be unique for each group of rows that has a collection of cal_year values (see below).

Valid values: 1 to 999999999 (nine digits), Integer

Source code: tax.h and tax.cpp

SSASIM:   MTE . notes
Describes specification of table row in free-form note.

Valid values: any ASCII text (Note: do not copy and paste from a word processor because of the possibility of embedded non-ASCII characters.)

Source code: notes are not read by the model

SSASIM:   MTE . cal_year
Specifies calendar year for which the parameters specified on this row are in effect. Calendar years for which no row exists have their parameter values calculated by linear interpolation between the closest prior year and closest subsequent year for which table rows have been specified for this id. Values for years following the last specified year are taken to be equal to value in the last specified year.

Valid values: RUN.year_zero to (RUN.year_zero+RUN.num_years), Integer

Source code: tax.h and tax.cpp

SSASIM:   MTE . adhoc_mte
Specifies whether OASDI maximum taxable earnings is set at an adhoc amount (see mte_amount below) this cal_year (when this parameter is true) or calculated using the normal wage indexing and rounding procedure (when this parameter is false). Note that this parameter is interpolated across calendar years (see cal_year above).

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: tax.h and tax.cpp

SSASIM:   MTE . mte_amount
Specifies the adhoc OASDI maximum taxable earnings amount, before rounding to the nearest 300 dollars, for the cal_year specified on this table row. This value is read only if adhoc_mte (see above) is true for this year (that is, this parameter is ignored for all years in which adhoc_mte is false). Amount is expressed in dollars and cents. Note: the simulated maximum taxable earnings level is used only in the micro model of cohort individuals to cap their earnings, and therefore, also in the macro model operating in OLC mode. When the macro model is operating in CBA mode, this parameter does not affect aggregate taxable earnings, which is controlled by the offsets (see ws_tc_del and sei_tc_del below and the corresponding TAXEARN table parameters).

When an adhoc mte_amount is specified for a calendar year, not only is the standard AWI-indexed-and-rounded MTE amount replaced by the adhoc MTE amount, but also the standard AWI-indexing formula has its base year changed to that calendar year and its base amount changed to that year's adhoc amount. Under current-law policy, the base year is 1994 and the base amount is $60,600. The AWI-indexing formula for MTE is as follows (where tb denotes the base year):

MTE(t) = MTE(tb) * AWI(t-2)/AWI(tb-2)

Note that this indexing rule is suspended for years in which the base (pre-offset) COLA is zero.

Important note: all covered earnings below the MTE amount are used in the calculation of both payroll taxes and benefit, unless some of the earnings below the MTE are excluded (see the MTE.ete_lo_amt and MTE.ete_hi_amt parameters below) in which case the excluded earnings are use to calculate neither payroll taxes nor benefits.

Valid values: any non-negative value, Real [set as high as 9.9e30]

Source code: tax.h and tax.cpp

SSASIM:   MTE . ws_tc_del
Specifies offset (delta) amount added to the wage and salary taxable-to-covered earnings ratio (see TAXEARN.ws_tc_f) for the calendar year (see cal_year above) specified on this table row.

Valid values: -1.0 to +1.0, Real [in each year the value of the ratio plus this offset is automatically constrained to be in the zero-one range]

Source code: tax.h and tax.cpp

SSASIM:   MTE . sei_tc_del
Specifies offset (delta) amount added to the self-employment income taxable-to-covered earnings ratio (see TAXEARN.sei_tc_f) for the cal_year specified on this table row.

Valid values: -1.0 to +1.0, Real [in each year the value of the ratio plus this offset is automatically constrained to be in the zero-one range]

Source code: tax.h and tax.cpp

SSASIM:   MTE . adhoc_xte
Specifies whether OASDI excess taxable earnings is set at an adhoc amount (see xte_amount below) this cal_year (when this parameter is true) or perhaps calculated from the prior year's value using the normal wage indexing procedure, or not indexed, depending on the value of MTE.index_xte (see below). Note that this parameter is interpolated across calendar years (see cal_year above) and that adhoc_xte must be true on the row for which MTE.cal_year is equal to RUN.year_zero.

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: tax.h and tax.cpp

SSASIM:   MTE . xte_amount
Specifies the adhoc OASDI excess taxable earnings (XTE) amount for the cal_year specified on this table row. This value is read only if adhoc_xte (see above) is true for this year (that is, this parameter is ignored for all years in which adhoc_xte is false). Amount is expressed in dollars and cents. In each year where adhoc_xte is false and index_xte (see below) is true, the simulated XTE amount is AWI-indexed and rounded to the nearest 300 dollars using the same logic as is applied to the maximum taxable earnings. Note: the simulated XTE amount is used only in the micro model of cohort individuals to calculate payroll taxes on earnings in excess of the maximum taxable earnings level, and therefore, also in the macro model operating in OLC mode. For more, see TAXR_DI and TAXR_RI fields ex_t_rate1 and ex_t_rate2. The ex_t_rate1 applies to earnings between mte_amount and (mte_amount+xte_amount), while ex_t_rate2 applies to earnings above (mte_amount+xte_amount).

Note that xte indexing is suspended for years in which the base (pre-offset) COLA is zero.

Valid values: any non-negative value, Real [set as high as 9.9e30]

Source code: tax.h and tax.cpp

SSASIM:   MTE . index_xte
Specifies whether OASDI excess taxable earnings is indexed this cal_year when adhoc_xte is false for this cal_year. If index_xte is true, this year's xte value if calculated from the prior year's value using the normal wage indexing procedure; otherwise, this year's value is equal to prior year's value. Note that this parameter is interpolated across calendar years (see cal_year above) and that index_xte must be true in cal_year equal to RUN.year_zero.

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: tax.h and tax.cpp

SSASIM:   MTE . adri_pct
Specifies the aged-dependency-ratio indexing percent for maximum taxable earnings. A zero percent implies no aged-dependency-ratio indexing in that year. Positive adri_pct values must all be the same across years. Once a positive adri_pct has been specified, the value of adri_pct in subsequent years must all be that same constant value.

The aged dependency ratio is defined using the POP.maxage_yng and POP.minage_old parameters.

If the adri_pct parameter is positive in current year t, it is used in the following indexing factor (F) formula:

F(t) = 1 + { [R(t-2)/R(tb-2)-1] * [adri_pct(t)/100] }

where R denotes the aged dependency ratio and and tb the year before aged-dependency-ratio indexing begins. This indexing factor is applied to the maximum taxable earnings produced by the standard AWI-indexing formula for the current year, STD_MTE(t), as follows:

MTE(t) = STD_MTE(t) * F(t).

This formula implies, for example, that if some future year the adri_pct is 100 and the aged-dependency ratio two years prior to that year is twice the value of the ratio two years prior to the year before indexing began, then the value of F would be two, and therefore, the standard AWI-indexed MTE would be multiplied by two to get the actual MTE for that future year.

During the years that this indexing scheme is active (that is, years for which adri_pct is positive), the values of MTE.adhoc_mte must be false. This constraint ensures that no ad hoc changes to maximum taxable earnings are being specified for those years.

Valid values: 0 to 1000, Integer

Source code: tax.h and tax.cpp

SSASIM:   MTE . adhoc_ete
Specifies whether OASDI excluded taxable earnings parameters are set at adhoc amounts (see ete_lo_amt and ete_hi_amt below) this cal_year (when this parameter is true) or calculated from the prior year's value using the normal wage indexing procedure (when this parameter is false). Note that this parameter is interpolated across calendar years (see cal_year above) and that adhoc_ete must be true on the row for which MTE.cal_year is equal to RUN.year_zero.

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: tax.h and tax.cpp

SSASIM:   MTE . ete_lo_amt
Specifies the low earnings amount that defines the range of earnings excluded from OASDI taxable earnings for the cal_year specified on this table row. This value is read only if adhoc_ete (see above) is true for this year (that is, this field is ignored for all years in which adhoc_ete is false). Amount is expressed in dollars and cents. In each year where adhoc_ete is false, the simulated ete_lo_amt is AWI-indexed and rounded to the nearest 300 dollars using the same logic as is applied to the maximum taxable earnings. Note: the simulated ete_lo_amt is used only in the micro model of cohort individuals, and therefore, also in the macro model operating in OLC mode.

Note that this indexing rule is suspended for years in which the base (pre-offset) COLA is zero.

Valid values: any non-negative value, Real [set as high as 9.9e30]

Source code: tax.h and tax.cpp

SSASIM:   MTE . ete_hi_amt
Specifies the high earnings amount that defines the range of earnings excluded from OASDI taxable earnings for the cal_year specified on this table row. This value is read only if adhoc_ete (see above) is true for this year (that is, this field is ignored for all years in which adhoc_ete is false). Amount is expressed in dollars and cents. In each year where adhoc_ete is false, the simulated ete_hi_amt is AWI-indexed and rounded to the nearest 300 dollars using the same logic as is applied to the maximum taxable earnings. Note: the simulated ete_hi_amt is used only in the micro model of cohort individuals, and therefore, also in the macro model operating in OLC mode.

Note that this indexing rule is suspended for years in which the base (pre-offset) COLA is zero.

Valid values: any non-negative value, Real [set as high as 9.9e30]

Source code: tax.h and tax.cpp