Moreno, Warren Propose Scrapping $184,500 Payroll Tax Cap to Shore Up Social Security
Updated
Updated · The Columbus Dispatch · Aug 4
Moreno, Warren Propose Scrapping $184,500 Payroll Tax Cap to Shore Up Social Security
3 articles · Updated · The Columbus Dispatch · Aug 4
Summary
$184,500 in wages now escapes Social Security tax, but Sens. Bernie Moreno and Elizabeth Warren want to eliminate that cap while keeping benefits capped.
The proposal targets a program whose Old-Age and Survivors Insurance trust fund is projected to run insolvent in six years, risking benefit cuts or steeper tax increases.
The 12.4% payroll tax change would hit up to 6% of Americans each year, according to the opinion piece criticizing the plan as tax-heavy and incomplete.
Social Security's worker-to-retiree support ratio has fallen from 5-to-1 in the 1960s to 2.6-to-1 today and is projected to drop another 20%, underscoring the broader financing strain.