Warren, Moreno Propose Ending $184,500 Social Security Tax Cap as 2032 Trust Fund Deadline Looms
Updated
Updated · www.myfederalretirement.com · Aug 26
Warren, Moreno Propose Ending $184,500 Social Security Tax Cap as 2032 Trust Fund Deadline Looms
3 articles · Updated · www.myfederalretirement.com · Aug 26
Summary
Warren and Moreno said they are preparing legislation to apply Social Security payroll taxes to wages above the 2026 taxable maximum of $184,500, though no bill text or bill number has been released.
The push comes after trustees projected the Old-Age and Survivors Insurance Trust Fund will exhaust reserves in late 2032, after which ongoing revenue would cover about 78% of scheduled benefits if Congress does nothing.
Roughly 6% of covered workers earn above the cap, so most federal employees would see no direct paycheck change; a worker making $1 million now pays $11,439 in employee Social Security tax, versus $62,000 if the 6.2% tax applied to all wages.
Key design details remain unresolved, including whether newly taxed earnings would raise future benefits, how self-employment income would be treated and how much the change would extend solvency.
The bipartisan pairing is politically notable because Republicans have rarely backed lifting the cap, signaling broader debate over revenue options rather than any immediate change to claiming strategies or FERS supplements.