Social Security and the blue wave: What could happen to payroll taxes and senior tax breaks

Social Security is funded in part by payroll taxes on workers’ earnings, and some candidates have proposed raising or removing the cap on taxable wages so higher earners pay more. The debate could shape efforts to strengthen the programme’s finances, though analysts say Congress may delay politically difficult tax increases until the trust fund faces insolvency.

In 2026, the tax applies to earnings up to $184,500, with workers and employers each paying 6.2%; self-employed people pay 12.4%. The cap will rise to $192,300 in 2027. Senator Bernie Sanders says increasing benefits by at least $2,400 a year and scrapping the cap will be a priority, while a February survey found 79% support taxing wages above $400,000. Research cited in the article says the share of earnings covered by the tax has fallen from the 90% expected under 1983 reforms to about 83%.