Moreno’s Social Security tax hike would hurt working families, businesses
Summary
Senator Bernie Moreno and Senator Elizabeth Warren have proposed removing the current limit on Social Security payroll taxes. This change would make all wages and self-employment income subject to the 12.4% Social Security tax instead of just income up to about $185,000.Key Facts
- Senators Bernie Moreno (Republican) and Elizabeth Warren (Democrat) proposed the same Social Security tax change.
- The proposal would remove the cap on income subject to the Social Security payroll tax.
- Currently, only the first roughly $185,000 of income is taxed for Social Security.
- The total Social Security tax rate is 12.4%, split between employers and workers.
- The tax applies to wages from jobs and to self-employment income.
- Removing the cap means people earning more than $185,000 would pay Social Security taxes on their full income.
- The proposal aims to increase funding for Social Security.
- This change would affect both workers and businesses who pay these taxes.
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