U.S. Sens. Bernie Moreno and Elizabeth Warren are calling for higher Social Security taxes on upper-income earners as a way to bolster the system’s finances and make it more fair.
“We don’t agree on everything, but here’s one thing we do agree on: Congress must act now to save Social Security for generations of Americans to come,” the Ohio Republican and Massachusetts Democrat wrote an opinion piece published in the New York Times.
A new report says that if Congress fails to act, Social Security will be significantly depleted by late 2032, which could trigger steep cuts. Moreno and Warren say the country needs to raise the Social Security payroll cap. Currently, workers and employers each pay 6.2% on wages up to $184,500. High earners don’t have to pay Social Security taxes on any wages above that.
“Lifting the cap so that all income is treated the same would generate substantial revenue that would extend the solvency of Social Security for another generation,” Moreno and Warren said.
They added: “This is a no-brainer: The wealthiest Americans, who have benefited the most from America’s opportunities, should contribute the same percentage of their income as a factory worker in Chillicothe, Ohio, or a teacher in Worcester, Mass.”
The Committee for a Responsible Federal Budget estimates that lifting the payroll tax cap could delay insolvency by 22 to 27 years.
The committee said inaction could lead to a 22% benefit cut. Under that scenario, Ohio retirees would see an average monthly cut of $487.
Currently, 2.2 million Ohioans receive Social Security benefits.
“It is encouraging to see senators from opposite parties come together to advance a solution and advocate for immediate action to save the program,” said Benjamin Tomchik, vice president of the Committee for a Responsible Federal Budget. “Eliminating the payroll tax cap would be a first step, but additional changes to benefits and revenues would be needed to secure the program for future generations.”
State government reporter Laura Bischoff can be reached at lbischoff@usatodayco.com and @lbischoff on X.
Tell us what you think
This article originally appeared on The Columbus Dispatch: Sens. Moreno, Warren aim to address Social Security solvency solutions
Reporting by Laura A. Bischoff, Columbus Dispatch / The Columbus Dispatch
USA TODAY Network via Reuters Connect
By Laura A. Bischoff, Columbus Dispatch | USA TODAY Network
