Social Security Update: Senators Push for Big Change to 'Save' Program
Summary
Senators Elizabeth Warren and Bernie Moreno have proposed a plan to fix Social Security by removing the income limit on the payroll tax. This change would make high earners pay Social Security taxes on all their income, potentially extending the program's financial health and protecting benefits for retirees.Key Facts
- Social Security currently taxes income only up to $184,500 in 2026; income above that is not taxed for Social Security.
- Workers and employers each pay 6.2% on earnings up to the cap.
- The proposal would lift or eliminate this cap, so high earners pay taxes on all their wages.
- Social Security’s main trust fund may run out of money by late 2032, risking benefit cuts of over 20%.
- The senators say this change would make the system fairer and bring in more money to keep it solvent.
- Some lawmakers and experts think raising the tax cap could delay benefit cuts but may not solve all funding problems.
- Any change would require new laws and could take years to put in place.
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