Saving Social Security

The Case for Lifting the Salary Cap

A Fair Solution to Ensure Benefits for 67+ Million Americans

The Crisis Is Real

2033

Trust Fund Depletion

21%

Automatic Benefit Cut

$262B

Annual Deficit (2025)

Social Security Trust Fund Projections

Without action, benefits will be cut by 21% across the board

How Social Security Works Today

Current Funding System

  • 6.2% tax on wages (employee)
  • 6.2% tax on wages (employer)
  • 12.4% total contribution
  • Cap at $176,100 (2025)

The Problem

  • Only 6% of workers earn above the cap
  • High earners pay lower effective rates
  • Cap covers declining share of total wages
  • System becomes increasingly regressive

Result: Someone earning $2 million pays the same Social Security tax as someone earning $176,100

The Tax Is Regressive

Higher earners pay lower effective Social Security tax rates

Social Security Tax Rates by Income
Middle Class Worker ($50K): Pays 6.2% effective rate
High Earner ($2M): Pays 0.55% effective rate

Fair Solutions

Donut Hole Approach

  • Apply tax to income above $400,000
  • Affects top 1-2% of earners
  • Generates ~$205B annually
  • Closes 60-80% of deficit

Eliminate Cap Entirely

  • Remove the cap completely
  • Affects top 6% of earners
  • Generates ~$293B annually
  • Nearly eliminates deficit
Recommended

Revenue Impact

How much additional revenue each approach generates

Revenue Scenarios
Current System: $262B annual deficit
Eliminating the Cap: Nearly closes the entire gap

Who Would Pay More?

94% of Workers

NO CHANGE

Earning under $176,100

6% of Workers

Pay Fair Share

Earning over $176,100

Real Impact Examples:

$300K earner: Additional $7,681/year
$500K earner: Additional $20,081/year
$1M earner: Additional $51,081/year

The Demographic Challenge

Fewer workers supporting each retiree

Worker to Beneficiary Ratio
1960: 5.1 workers per beneficiary
Today: 2.8 workers per beneficiary
2035: 2.3 workers per beneficiary

We need every worker to pay their fair share

The Choice Is Clear

Do Nothing

  • 21% benefit cuts in 2033
  • 67+ million Americans hurt
  • $4,980 less per year for median beneficiary
  • System remains regressive

Lift the Cap

  • Full benefits preserved
  • System becomes more fair
  • Only high earners pay more
  • Nearly eliminates the deficit

It's Time to Act

Contact your representatives and demand they lift the Social Security salary cap. 67 million Americans are counting on it.