Warren, Moreno Push to Lift $184,500 Social Security Tax Cap as 2032 Benefit Cut Looms
Updated
Updated · CBS New York · Sep 23
Warren, Moreno Push to Lift $184,500 Social Security Tax Cap as 2032 Benefit Cut Looms
3 articles · Updated · CBS New York · Sep 23
Summary
Sens. Elizabeth Warren and Bernie Moreno are backing removal of Social Security’s $184,500 payroll-tax cap, arguing higher earners should pay the tax on more income to help close the program’s financing gap.
2032 is the key deadline: without congressional action, Social Security’s trust fund is projected to run dry, triggering an automatic benefit cut of about 22%.
17% is the payroll-tax rate Cato says would be needed to restore full long-term benefits through taxes alone, up from 12.4%, adding roughly $2,600 to $3,000 a year for a median $62,000 worker and employer combined.
65% of Democrats and 62% of Republicans backed lifting or removing the cap in a 2025 Bipartisan Policy Center poll, though Cato warned higher taxes on top earners could push marginal rates above 60% in some states.
Broader reform options still under debate include a smaller tax increase, benefit curbs for higher earners, and raising the retirement age as policymakers weigh how to keep the 91-year-old program solvent.