By NextBestFitPhase 4: Wave 4: everyone · Step 4.5
Switch every tax to its full rate
Year 4 · IRS; TreasuryDiscuss this step
How other countries handled this same piece of implementation, what happened, and what it means for this plan.
Side by side
| Country | Approach | Result | Lesson for this plan |
|---|---|---|---|
| This plan (U.S.) | The employer tax reaches 7.5% and the household premium 4.0%. The trust fund starts building its 2-month reserve. | ||
| Netherlands | Government sets the income-related employer contribution rate each year (about 6.5–7% of wages up to a ceiling). | Revenue tracks spending through annual adjustment. | An annual, formula-based rate setting avoids crisis-driven tax votes. |
| Germany | Sickness funds set supplementary contribution rates annually to balance budgets. | Rates adjust automatically with costs. | Automatic rate adjustment keeps funds balanced but makes increases visible. |
Netherlands
- What they did
- Government sets the income-related employer contribution rate each year (about 6.5–7% of wages up to a ceiling).
- What happened
- Revenue tracks spending through annual adjustment.
- Lesson for this plan
- An annual, formula-based rate setting avoids crisis-driven tax votes.
Germany
- What they did
- Sickness funds set supplementary contribution rates annually to balance budgets.
- What happened
- Rates adjust automatically with costs.
- Lesson for this plan
- Automatic rate adjustment keeps funds balanced but makes increases visible.