Can raising taxes on the wealthy save Social Security? A look at the new proposal
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Many Americans count on Social Security and Medicare to help enjoy a more secure and healthy retirement.
Whether you're already receiving benefits or planning ahead, these programs play a big role in people's peace of mind.
Recently, though, there's been more talk in the news—and maybe even around the dinner table—about their future.
Lawmakers are once again debating how to keep these vital programs funded in the years to come.
One new proposal is getting attention, especially for how it might impact higher-income earners.
So what’s actually being discussed, and could it affect you or your family?
More than 65 million Americans depend on Social Security and Medicare, and recent projections suggest that these programs could face funding challenges by the mid-2030s if no adjustments are made.
One government report estimates that, without action, benefits might need to be reduced by as much as 17% starting in 2035.
The underlying issues are well known: as more Baby Boomers retire and people live longer, the number of beneficiaries is growing faster than the number of workers contributing to the system.
This shift is putting pressure on the programs’ long-term sustainability.
Democratic lawmakers, including Senator Sheldon Whitehouse and Representative Brendan Boyle, have reintroduced the Social Security and Medicare Fair Share Act.
The bill’s main goal is to increase payroll taxes for America’s highest earners, without raising costs for most workers.
Here’s how it would work:
In short: If you earn less than $400,000 a year, your taxes would not change under this bill.
But for wealthier individuals, the proposal would mean contributing more to help fund the programs.
According to the Center for American Progress, this policy could cover nearly 80% of Social Security’s projected long-term shortfall.
That’s a significant fix for a program many Americans want to preserve.
A 2023 Pew Research Center survey backs this up, showing that 68% of Americans support raising taxes on high-income earners to support Social Security and Medicare.
Not all lawmakers support raising taxes.
The Republican Study Committee, a group of over 170 GOP House members, has proposed a different approach: gradually raising the retirement age for future beneficiaries to reflect longer life spans.
This would help reduce costs, but would also delay access to benefits for younger generations.
The bill is expected to face challenges in the House of Representatives, where Republicans hold a majority.
However, it has reignited a much-needed discussion about how to keep these programs going.
As the 2026 midterm elections draw closer, conversations over Social Security and Medicare are likely to take center stage.
Social Security and Medicare support not just older adults, but also survivors, people with disabilities, and others who need care.
Ensuring their stability means protecting millions of Americans today and in the future.
Read next: Social Security sends “emergency message”: Key details explained
What do you think about the proposal? Should higher earners pay more to protect Social Security and Medicare? Would raising the retirement age be a better option? Share your thoughts in the comments—we want to hear from you!
Whether you're already receiving benefits or planning ahead, these programs play a big role in people's peace of mind.
Recently, though, there's been more talk in the news—and maybe even around the dinner table—about their future.
Lawmakers are once again debating how to keep these vital programs funded in the years to come.
One new proposal is getting attention, especially for how it might impact higher-income earners.
So what’s actually being discussed, and could it affect you or your family?
More than 65 million Americans depend on Social Security and Medicare, and recent projections suggest that these programs could face funding challenges by the mid-2030s if no adjustments are made.
One government report estimates that, without action, benefits might need to be reduced by as much as 17% starting in 2035.
The underlying issues are well known: as more Baby Boomers retire and people live longer, the number of beneficiaries is growing faster than the number of workers contributing to the system.
This shift is putting pressure on the programs’ long-term sustainability.
Lawmakers are considering new proposals to help strengthen Social Security and Medicare for the long term. Image Source; YouTube / Business News.
What’s the proposed solution?
Democratic lawmakers, including Senator Sheldon Whitehouse and Representative Brendan Boyle, have reintroduced the Social Security and Medicare Fair Share Act.
The bill’s main goal is to increase payroll taxes for America’s highest earners, without raising costs for most workers.
Here’s how it would work:
- Currently, only the first $168,600 of a person’s wages is taxed for Social Security. Anything above that is exempt.
- The bill would reintroduce Social Security taxes for wages over $400,000—creating a gap between $168,600 and $400,000 where income still wouldn’t be taxed.
- Medicare taxes already apply to all income, so this change would only affect Social Security contributions.
In short: If you earn less than $400,000 a year, your taxes would not change under this bill.
But for wealthier individuals, the proposal would mean contributing more to help fund the programs.
Also read: Trump just dropped a Social Security update—Here’s what to know
How much would this help?
According to the Center for American Progress, this policy could cover nearly 80% of Social Security’s projected long-term shortfall.
That’s a significant fix for a program many Americans want to preserve.
A 2023 Pew Research Center survey backs this up, showing that 68% of Americans support raising taxes on high-income earners to support Social Security and Medicare.
What are the other ideas on the table?
Not all lawmakers support raising taxes.
The Republican Study Committee, a group of over 170 GOP House members, has proposed a different approach: gradually raising the retirement age for future beneficiaries to reflect longer life spans.
This would help reduce costs, but would also delay access to benefits for younger generations.
Also read: New Social Security feature could save you time—but there’s a catch
What happens next?
The bill is expected to face challenges in the House of Representatives, where Republicans hold a majority.
However, it has reignited a much-needed discussion about how to keep these programs going.
As the 2026 midterm elections draw closer, conversations over Social Security and Medicare are likely to take center stage.
How this might affect you
- If you’re a middle-income earner: You won’t see changes to your paycheck under this proposal.
- If you earn over $400,000 annually: You would start paying Social Security taxes again on income above that threshold.
- If you’re retired: Your current benefits wouldn’t change, but the bill could help keep the program funded for future generations.
- If you’re still working and planning for retirement: This legislation could play a role in whether full benefits remain available when you need them.
Social Security and Medicare support not just older adults, but also survivors, people with disabilities, and others who need care.
Ensuring their stability means protecting millions of Americans today and in the future.
Read next: Social Security sends “emergency message”: Key details explained
What do you think about the proposal? Should higher earners pay more to protect Social Security and Medicare? Would raising the retirement age be a better option? Share your thoughts in the comments—we want to hear from you!
