Bipartisan plan targets high earners to extend Social Security trust fund solvency without benefit cuts.
Senators Elizabeth Warren and Bernie Moreno proposed lifting the payroll tax cap to bolster Social Security funding. The current $168,600 cap exempts earnings above that threshold from taxation, reducing revenue for the program’s trust funds.
The proposal aims to address projected shortfalls that could trigger automatic benefit cuts after 2034. A 2025 poll cited by the senators showed broad bipartisan support, including among high-income households, for adjusting the cap to ensure long-term solvency.
No immediate market reaction was reported, but the plan could influence fiscal policy debates ahead of the 2024 elections.