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Sanders Proposes Taxing Income Over $250K to Save Social Security

8/6/2026

Summary

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Senator Bernie Sanders (I-VT) proposes removing the Social Security earnings cap and taxing all income above $250,000, including capital gains.
He says the plan could extend solvency for 75 years, while the Social Security Administration warns the trust fund could run out by 2032, triggering a 22 percent cut for over 70 million recipients.
Republicans oppose the plan, which requires congressional approval and the signature of U.S. President Donald Trump.

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Story summary

Senator Bernie Sanders (I-VT) proposes removing the Social Security earnings cap and taxing all income above $250,000, including capital gains.
He says the plan could extend solvency for 75 years, while the Social Security Administration warns the trust fund could run out by 2032, triggering a 22 percent cut for over 70 million recipients.
Republicans oppose the plan, which requires congressional approval and the signature of U.S. President Donald Trump.