Subject wages over $400,000 to the payroll tax
Social Security provides retirement and disability income to about 70 million Americans. The average monthly benefit is about $1,700. Without changes, the Social Security trust fund is projected to run out around 2033, after which benefits would need to be cut by about 20%. Proposals to address the funding shortfall include raising the payroll tax, lifting the cap on taxable earnings (currently $160,200), raising the retirement age, and/or reducing benefits for higher earners.
Arguments For & Against
Pro Argument
Social Security is the foundation of retirement security for most Americans. The funding shortfall should be addressed by requiring wealthier Americans to pay more by lifting the cap on taxable earnings, not by cutting benefits for retirees who depend on these modest payments to survive.
Con Argument
Social Security's financial trajectory is unsustainable and we must make adjustments to both revenues and benefits to preserve it for future generations. Gradually raising the retirement age to reflect longer life expectancies is a reasonable reform that spreads the burden fairly.
Source document: SS-FC-Quaire-Full-0924.pdf
| Type | Organization | Date | Nat | Rep | Dem | Gap | Metric |
|---|---|---|---|---|---|---|---|
| New PPC Survey (2026) | Program for Public Consultation | February 2026 | 79% | 77% | 83% | 6% | favor |
| Deliberative Survey | Program for Public Consultation | September 2024 | 87% | 86% | 89% | 3% | other |
Program for Public Consultation — February 2026
Here are some options that would reduce the budget shortfall of the Social Security program, and thus extend the amount of time that the program can provide full benefits. For each, please say whether you favor or oppose… Currently, the amount of salary and wages that are subject to the Social Security payroll tax includes income up to $185,000 per year. Do you favor or oppose also subjecting wages over $400,000 to that payroll tax, which would reduce the budget shortfall by 61%?
Program for Public Consultation — September 2024
You may select OR not select the following proposal: All wages above $400,000 would be subject to the payroll tax (but not income from dividends or capital gains) [reduces shortfall by 60%]
Related Policies
Gradually increase the payroll tax from 6.2% to 6.5%
62% national support
Reduce benefits for the top 20% of lifetime earners
65% national support
Gradually increase the full retirement age to 68
56% national support
Raise the minimum benefit for someone who has worked 30 years to 125% of the federal poverty line
78% national support