Social Security Proposal Would Raise Taxes for Millions to Save Program
Summary
A group of lawmakers from both parties wants to change Social Security rules so that wealthy Americans pay taxes on all their earnings, not just up to a certain limit. This proposal aims to prevent Social Security funds from running out, which could happen by 2032, and would raise money mainly from high earners.Key Facts
- Social Security's trust fund might run out by late 2032, risking cuts to benefits.
- Currently, workers and employers pay a 6.2% tax on income up to $184,500 (in 2026).
- Income above $184,500 is not taxed for Social Security.
- Senators Elizabeth Warren and Bernie Moreno want to remove this tax cap so rich people pay on all income.
- About 6% of workers earn above the current tax limit and would be affected.
- Raising or removing the cap could bring in about $3 trillion over 10 years.
- This change could cover roughly two-thirds of Social Security’s 75-year funding gap.
- Some lawmakers propose increasing taxes on high earners instead of cutting benefits.
- There is a bipartisan discussion, but some Republicans oppose raising taxes on the wealthy.
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