Warren, Moreno Push $3 Trillion Social Security Tax Plan for High Earners

3 articles · Updated · Money Talks News · Aug 18

A bipartisan proposal from Sens. Elizabeth Warren and Bernie Moreno would apply Social Security payroll taxes to earnings above the 2026 wage cap of $184,500, making top earners keep paying year-round.
The plan’s key break with current practice is that higher earners would not receive larger retirement benefits in return, turning the added tax into a bigger financing fix rather than a benefit increase.
A worker earning $1 million would pay about $62,000 in the 6.2% employee tax instead of roughly $11,400 now—a jump of about $50,000—while about 94% of workers would see no change.
Analysts cited in the report say lifting the cap without boosting benefits could close roughly three-quarters of Social Security’s long-term funding gap, versus about half if benefits also rose.
The proposal still would not fully solve the program’s finances: trustees project the retirement trust fund will run short around 2032, triggering an estimated 22% benefit cut if Congress does nothing.