Taxing high earners to help fund Social Security gains bipartisan attention — what it could mean for benefits

With Social Security facing a projected funding shortfall in 2031, lawmakers from both parties have expressed openness to raising payroll taxes on high-income earners as a potential funding mechanism for the program. Currently, payroll taxes that fund Social Security are capped at $168,600 in annual earnings as of 2024, meaning income above that threshold is not subject to the tax. Proposals to expand the tax base to higher earners would increase revenue to the trust fund. No legislation has been introduced with specific parameters or timeline for implementation.

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