17 Aug 2026 9:43 pm
Looks like a shortfall taxing even the money over $400k.jerrab » 17 Aug 2026, 8:12 pm » wrote: ↑ 250-184=66,000. 4%66,000 lets say 2500 more for a salary of 250,000.
Taxing earnings above $400,000 for Social Security significantly reduces the program's long-term funding gap, but it does not completely save it on its own. Actuarial estimates show that applying the payroll tax to high earners eliminates roughly 60% of Social Security's 75-year shortfall, requiring additional adjustments to achieve full solvency.
How the Proposal Works
Current limit:
In 2026, the Social Security payroll tax cap stops at $184,500 of annual earnings.
The "donut hole" fix:
Proposals like the Social Security 2100 Act leave earnings between $184,500 and $400,000 untaxed, but reapply the 12.4% tax to all earnings above $400,000.
No extra benefits:
High earners who pay these extra taxes do not receive higher monthly retirement checks in return.