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Social Security Reform: Evaluation of the Nick Smith Proposal

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Report Type Reports and Testimonies
Report Date Feb. 29, 2000
Report No. AIMD/HEHS-00-102R
Subject
Summary:

Recent proposals regarding Social Security Disability Insurance range from increasing the substantial gainful activity level established for the program's blind beneficiaries to eliminating it completely. These proposals, if enacted, would likely increase beneficiaries' work effort but would raise program costs and could widen the differences in the program's treatment of blind and nonblind beneficiaries. Raising the level for blind persons could result in calls to increase it for nonblind persons, leading to significantly higher program costs and adverse effects on the solvency of the Social Security trust fund. Eliminating the level would fundamentally alter the purpose of the program. Other changes to work incentives being implemented or tested are likely to increase beneficiaries' work without changing the nature of the program.

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