Warren, Moreno Push Bill to Lift $180,000 Social Security Tax Cap as 2032 Insolvency Looms
Updated
Updated · WFMJ · Jul 5
Warren, Moreno Push Bill to Lift $180,000 Social Security Tax Cap as 2032 Insolvency Looms
3 articles · Updated · WFMJ · Jul 5
Summary
A bipartisan bill from Senators Elizabeth Warren and Bernie Moreno would remove the $180,000 earnings cap on wages subject to Social Security taxes, targeting a funding gap projected to hit in 2032.
The proposal responds to estimates that, if Congress does nothing, Social Security would not disappear but could face an across-the-board 25% benefit cut once reserves are exhausted.
Financial advisers cited in the report said raising the taxable wage ceiling could materially delay insolvency; lifting the cap to $300,000 alone could push the date out to 2058.
The debate lands as retirees draw more from the system than workers pay in, increasing pressure on Congress to act before the projected 2032 deadline.
For younger workers, advisers said the uncertainty reinforces a broader retirement message: Social Security should not be the only plan, and even $40-$50 per paycheck in a 401(k) can build substantial savings.