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Moreno Joins Warren to Raise Social Security Tax Cap

9/9/2026

Summary

Senators Raise Cap

Sen. Bernie Moreno (R-Ohio) joined Sen. Elizabeth Warren (D-Mass.) to raise the Social Security tax cap.
Trustees warn the Social Security trust fund could be depleted around 2032, risking 20% cuts.
Sen. Bernie Sanders (I-Vt.) proposed eliminating the cap to keep the program solvent for 75 years.
Sanders added the change could raise benefits by $2,400 per recipient.

Summary

AARP Slams COLA

Rep. Tim Penny (D-MN) originally proposed a flat-rate COLA in 1987.
AARP estimates 80% of recipients would lose purchasing power, costing the average beneficiary $285 annually.
AARP calculates the average monthly benefit would drop to $34.20 in 2026 versus $57.90.
Bill Sweeney, AARP senior vice president for government affairs, called the flat-rate COLA a massive cut dressed up in jargon.

History

Historical Context

The 1983 Social Security Amendments, enacted under President Ronald Reagan, created a federal trust fund and raised the payroll tax cap. Congress set the taxable earnings limit at $35,700 and projected a $200 billion surplus by 1990, according to the Social Security Administration. Today Senators Bernie Moreno, Elizabeth Warren and Bernie Sanders echo that bipartisan push, while AARP’s Bill Sweeney warns a flat-rate COLA would cut benefits. If legislators follow the 1983 precedent, they may avert the projected 2032 trust-fund shortfall and preserve benefits for future retirees.

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Senators Raise Cap

Sen. Bernie Moreno (R-Ohio) joined Sen. Elizabeth Warren (D-Mass.) to raise the Social Security tax cap.
Trustees warn the Social Security trust fund could be depleted around 2032, risking 20% cuts.
Sen. Bernie Sanders (I-Vt.) proposed eliminating the cap to keep the program solvent for 75 years.
Sanders added the change could raise benefits by $2,400 per recipient.

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