Senators Warren and Moreno Propose Eliminating Social Security Payroll Tax Cap

Senators Elizabeth Warren (D-Massachusetts) and Bernie Moreno (R-Ohio) have introduced a joint proposal to remove the $184,500 earnings cap on Social Security payroll taxes. Their aim is to “extend the solvency of Social Security for another generation” by requiring all wages to be subject to the 6.2 percent employee and employer tax. The trustees of the Social Security Administration warned in their latest report that the retirement trust fund could be exhausted by 2032, which would trigger a projected 22 percent cut in benefits for retirees.

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Social Security is financed primarily through payroll taxes. Under current law, earnings above $184,500 are exempt from the Social Security tax, meaning higher-income workers contribute a smaller share of their total compensation. The trust fund has historically covered the gap between outlays and tax receipts, but demographic shifts and wage growth at the top have accelerated the projected shortfall.

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Warren and Moreno argue that the cap creates “double unfairness” because middle-class workers pay a larger share of their paycheck than wealthy professionals. Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, supports the approach as “a far more equitable way to restore the program to long-term solvency than cutting benefits.” The senators cite a projection that eliminating the cap could generate roughly $3 trillion for the program over the next decade.

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• Trust-fund depletion: Expected by late 2032, potentially reducing benefits by more than 20 percent.

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• Revenue estimate: Approximately $3 trillion over ten years if the cap is removed (senators’ estimate).

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• Public opinion: A 2023 survey by the National Academy of Social Insurance, AARP, the National Institute for Social Security and the U.S. Chamber of Commerce found 68 percent overall support for eliminating the cap; 60 percent of respondents with household incomes above $200,000 also favored the change.

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In their op-ed, Warren and Moreno framed the proposal as a “common-sense solution” that would “reward work and restore fairness” while preserving benefits. Richtman reiterated longstanding support for adjusting the wage cap to ensure the wealthy pay their “fair share.” The senators have indicated they are drafting legislation, though specific bill language has not been released.

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Andrew G. Biggs, senior fellow at the American Enterprise Institute, warned that the change would “effectively increase the top marginal tax rate by 12 percentage points,” creating a tax burden higher than that of most European nations and potentially prompting high earners to reduce work hours or seek avoidance strategies. Alex Beene, a financial-literacy instructor at the University of Tennessee at Martin, noted that while the proposal could bring “trillions of dollars” into the system, it may not close the entire long-term shortfall. Drew Powers, founder of Powers Financial Group, emphasized that any tax increase above $184,500 is “rarely popular” and will face “an uphill battle” in Congress.

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The $3 trillion revenue projection is presented only by the sponsoring senators; other analysts reference “trillions” without a precise figure, leaving the exact fiscal benefit uncertain. Details of the proposed legislation, including implementation timeline and potential offsets, have not been disclosed.

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• “Why should a middle-class nurse pay a larger share of her paycheck than a wealthy corporate lawyer? This is doubly unfair in an economy in which top earners’ wages, over time, have pulled far ahead of those of the average worker,” — Elizabeth Warren and Bernie Moreno, op-ed authors

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• “We have long supported adjusting the payroll wage cap so that the wealthy contribute their fair share to Social Security,” — Max Richtman, National Committee to Preserve Social Security and Medicare

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• “Warren and Moreno’s proposal is centered on removing or substantially raising the Social Security tax ceiling on high-income earners that they believe would bring trillions of dollars into the program and delay benefit cuts,” — Alex Beene, University of Tennessee at Martin

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• “If we are going to save Social Security, more money needs to be in the system, period.” — Drew Powers, Powers Financial Group

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Warren and Moreno are actively pursuing a bill, but passage will require bipartisan support in a historically divided Congress. Anticipated debates will focus on the balance between revenue generation and tax burden, with any reform unlikely to be enacted before the 2032 trust-fund deadline.

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