A Renewed Call to Scrap the Cap

We’re just a few weeks into the new year and already some of the wealthiest Americans are done paying income tax. That’s because the maximum amount of income subject to Social Security tax is just $160,200. That’s a big jump from last year’s $147,000, but an article in Bloomberg says it’s still pocket change for people like Apple’s Tim Cook, who reportedly makes about $98 million each year.

It suggests eliminating the wage cap as a viable means to boost Social Security’s coffers and ensure its long-term solvency. The article states: “About 180 million Americans contributed a total of $943 billion to Social Security in 2021. Ending the cap for the 5 percent of U.S. workers who earn more than $160,200 would increase revenue by more than $150 billion.”

The Seniors Trust agrees that we need a change. One of the best ways to solve many of Social Security’s issues is to enact the Social Security Expansion Act. It calls for getting rid of the payroll tax cap as a means to support Social Security benefits far into the future.