A pair of unlikely collaborators is urging Congress to eliminate Social Security’s payroll tax cap, arguing the change could raise trillions of dollars and help shore up the program’s finances.
Democratic Sen. Elizabeth Warren and Republican Sen. Bernie Moreno made the case in a New York Times op-ed on Tuesday, arguing that scrapping the cap would bring billions of dollars into the system and extend “the solvency of Social Security for another generation.”
The senators wrote: “We don’t agree on everything, but here’s one thing we do agree on: Congress must act now to save Social Security for generations of Americans to come.”
The lawmakers noted that Social Security payroll taxes apply only to the first $184,500 of earnings in 2026, even if a worker’s salary far exceeds that figure.
“Since the vast majority of Americans make less than that, most people are paying Social Security taxes on 100 percent of their earnings while the highest earners are paying on only part of theirs,” the op-ed reads.
The Peter G. Peterson Foundation estimates that eliminating the cap could generate roughly $3 trillion in additional Social Security tax revenue over a decade.
The proposal comes as lawmakers debate ways to strengthen Social Security’s finances after trustees warned the program’s reserves could be depleted sooner than previously expected.
A government report released on June 5 found that a smaller share of earnings is now subject to Social Security payroll taxes than in the 1980s, falling from almost 87% in 1984 to roughly 83% today.
Officials estimate the Old-Age and Survivors Insurance fund will exhaust its reserves in late 2032, about three months earlier than forecast last year. If Congress does not act before then, Social Security would still be able to pay benefits, but only about 78% of the amount currently scheduled under law.
What is the Social Security payroll tax cap?
The Social Security payroll tax cap is the maximum amount of earnings subject to Social Security taxes each year. In 2026, workers pay Social Security tax only on the first $184,500 they earn, with income above that threshold exempt from the tax.Â
According to the latest available figures from the Social Security Administration (SSA), the average U.S. wage was $66,726.44 in 2024.
The cap is adjusted annually by the Social Security Administration to reflect changes in average wages. While most Americans earn less than the threshold and pay Social Security taxes on all of their wages, higher-income workers pay the tax on only a portion of their earnings.
The Social Security Administration’s Office of the Chief Actuary has analyzed alternatives, including taxing earnings above thresholds such as $250,000 or $400,000, or gradually increasing the cap over time rather than eliminating it altogether.
“Lifting the cap so that all income is treated the same would generate substantial revenue that would extend the solvency of Social Security for another generation,” Warren and Moreno wrote.Â
Critics of the cap argue that it allows a growing share of income to avoid Social Security taxes as earnings among top earners rise faster than average wages. Supporters of the cap counter that Social Security was designed to tax only a limited amount of earnings and provide benefits based on those contributions.
The idea appears to enjoy broad public support. A 2025 survey by the Bipartisan Policy Center found that 65% of Democrats and 62% of Republicans backed lifting the cap, including a majority of households earning more than $200,000 annually.
Would it work?
Supporters say eliminating the payroll tax cap would significantly boost Social Security revenue by requiring higher earners to pay taxes on more of their income. Estimates cited by the Peter G. Peterson Foundation suggest the change could raise roughly $3 trillion in additional Social Security tax revenue over the next decade.
Advocates argue the proposal would help reverse a long-term decline in the share of earnings subject to Social Security taxes, as wages among top earners have grown faster than average incomes.
The idea is one of several proposals aimed at strengthening Social Security’s finances and extending the life of its trust fund reserves. On Monday, Sen. Bill Cassidy of Louisiana proposed a plan that would use borrowed funds to establish an investment fund tied to stock market returns, with the aim of helping close the program’s long-term financing gap.
