Social Security is funded by payroll taxes. The vast majority of American workers – about 95% – have Social Security payroll taxes taken out of their paychecks each week. That’s because payroll taxes are paid on all earned income up to $142,800 – the payroll tax cap for 2021. People earning more than that amount stop paying the tax when they reach that threshold.
The Social Security Expansion Act calls for lifting the cap and applying the payroll tax to all income over $250,000. This would ensure the Social Security system is stable and secure. The Seniors Trust is working to enact the Social Security Expansion Act for the betterment of retirees. When passed it will provide bigger benefits, set a fair COLA, reduce senior poverty, and guarantee the long-term solvency of the Social Security program.