Title
Save Social Security
Short Description
Ensure the Social Security is fully funded by raising the maximum contribution while not raising the maximum distribution from the current level.
Motivation
Many seniors in the USA rely on social security income to support themselves in their retirement. It can be saved if we are willing to do it.
Outline
1. Remove the cap on contribution into the program.
2. Keep the maximum distribution defined the same as it is now.
Analysis Summary
TheThis Saveproposal Social Security Act would eliminateeliminates the Social Security payroll tax cap while maintaining currentthe benefit calculation limits,cap, creating a significant tax increase onrequiring high earners (roughly 6% of workers) to ensurepay program12.4% solvency.tax on all earnings but receiving no additional benefits. This highly progressive approach couldwould generate $1.2-1.4approximately $3.0-3.5 trillion over 10 years and potentiallyyears, extend Socialtrust Security'sfund solvency by 20-2520-35 years, and eliminate 73% of the long-term deficit. The reform is highly progressive, affecting only the top 6% of earners, but representsbreaks the traditional contribution-benefit link, raises top marginal tax rates above 60%, and still leaves a fundamentallong-term shiftfunding fromgap socialrequiring insuranceadditional toward redistribution.reforms.
Fiscal Impact
Reduces debt by $9924$24809 per household
Congressional Bill
117th Congress) but goes further by completely removing the cap rather than creating a "donut hole."
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# CONGRESSIONAL BILL
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119th CONGRESS**
**1st Session**
**H.R. ___**CONGRESS
1st Session
H.R. ___
To ensure the long-term solvency of the Social Security program by
eliminating the cap on wages subject to Social Security payroll taxes
while maintaining the current benefit calculation formula.
IN THE HOUSE OF REPRESENTATIVES
January 23, 2026
Mr./Ms. __________ introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To ensure the long-term solvency of the Social Security program by removing the
eliminating the cap on wages subject to Social Security payroll taxes
while maintaining the current benefit calculation formula.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Save Social Security Act of
2026".
SECTION 2. FINDINGS.
Congress finds the following:
(1) The Social Security program provides critical
retirement, disability, and survivor benefits to more than
75 million Americans.
(2) Many seniors in the United States rely on Social
Security income to support themselves in their retirement.
(3) The Social Security Trust Funds face long-term
financing challenges that threaten the program's ability to
pay full benefits to future beneficiaries.
(4) The current contribution wageand benefit base limitlimits the
amount of wages subject to Social Security payroll taxes,
resulting in higher-income workers paying a lower effective
tax rate on their total earnings.
(5) Eliminating the cap on wages subject to Social
Security payroll taxes while maintaining the current maximum benefit levels.
Be it enacted
calculation formula will significantly improve the long-term
solvency of the Social Security Trust Funds.
(6) This approach ensures that all workers contribute to
Social Security on all of their earnings while preserving
the progressive nature of the benefit structure.
SECTION 3. ELIMINATION OF CAP ON WAGES SUBJECT TO SOCIAL SECURITY
PAYROLL TAXES.
(a) In General.--Section 3121(a)(1) of the Internal Revenue
Code of 1986 (26 U.S.C. 3121(a)(1)) is amended by striking "in
the case of the taxes imposed by sections 3101(a) and 3111(a)
that part of the remuneration which, after remuneration (other
than remuneration referred to in the succeeding paragraphs of
this subsection) equal to the contribution and benefit base (as
determined under section 230 of the Social Security Act) with
respect to employment has been paid to an individual by an
employer during the calendar year with respect to which such
contribution and benefit base is effective, is paid to such
individual by such employer during such calendar year".
(b) Conforming Amendments to Self-Employment Income.--
(1) IN GENERAL.--Section 1402(b)(1) of the Internal
Revenue Code of 1986 (26 U.S.C. 1402(b)(1)) is amended by
striking "that part of the net earnings from self-employment
which is in excess of" and all that follows through "minus"
and inserting "an amount equal to".
(2) TECHNICAL AMENDMENT.--Section 211(b)(1) of the
Social Security Act (42 U.S.C. 411(b)(1)) is amended by
striking "that part of the net earnings from self-employment
which is in excess of" and all that follows through "minus"
and inserting "an amount equal to".
(c) Effective Date.--The amendments made by this section
shall apply with respect to remuneration paid in calendar years
beginning after December 31, 2026, and to net earnings from
self-employment derived in taxable years beginning after
December 31, 2026.
SECTION 4. MAINTENANCE OF CURRENT BENEFIT CALCULATION FORMULA.
(a) Limitation on Earnings Counted for Benefit
Computation.--Section 215(e) of the Social Security Act (42
U.S.C. 415(e)) is amended by adding at the end the following:
"(6) LIMITATION ON EARNINGS COUNTED FOR BENEFIT
COMPUTATION.--
"(A) IN GENERAL.--Notwithstanding any other
provision of this section, for purposes of computing an
individual's average indexed monthly earnings under
subsection (b), the wages and self-employment income
credited to such individual for any calendar year after
2026 shall not exceed the contribution and benefit base
(as determined under section 230) which is (or would
have been) effective with respect to such calendar year.
"(B) PRESERVATION OF BENEFIT STRUCTURE.--The
limitation under subparagraph (A) shall apply
notwithstanding the amendments made by section 3 of the
Save Social Security Act of 2026, which eliminate the
cap on wages and self-employment income subject to taxes
under sections 3101(a), 3111(a), and 1401(a) of the
Internal Revenue Code of 1986.
"(C) CONTINUATION OF CONTRIBUTION AND BENEFIT BASE
DETERMINATION.--The Commissioner of Social Security
shall continue to determine and publish the contribution
and benefit base in accordance with section 230 for
purposes of this paragraph, notwithstanding that such
base no longer limits the amount of wages and self-
employment income subject to taxes under sections
3101(a), 3111(a), and 1401(a) of the Internal Revenue
Code of 1986.".
(b) Conforming Amendment.--Section 215(b)(1) of the Social
Security Act (42 U.S.C. 415(b)(1)) is amended by adding at the
end the following: "For calendar years after 2026, the wages
and self-employment income credited to an individual shall be
subject to the limitation specified in subsection (e)(6).".
(c) Effective Date.--The amendments made by this section
shall apply with respect to individuals who initially become
eligible for old-age or disability insurance benefits, or who
die (before becoming eligible for such benefits), in calendar
years after 2026.
SECTION 5. TRUST FUND PROTECTIONS.
(a) Appropriations to Trust Funds.--Section 201(a) of the
Social Security Act (42 U.S.C. 401(a)) is amended by adding at
the end the following: "There are hereby appropriated to the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund amounts equivalent to
100 percent of the taxes imposed by sections 3101(a) and
3111(a) of the Internal Revenue Code of 1986 with respect to
wages paid after December 31, 2026, and 100 percent of the
taxes imposed by section 1401(a) of such Code with respect to
self-employment income derived in taxable years beginning after
December 31, 2026, including all such taxes imposed on wages
and self-employment income without regard to any contribution
and benefit base limitation.".
(b) Allocation Between Trust Funds.--The Commissioner of
Social Security shall allocate the additional revenues
resulting from the amendments made by section 3 of this Act
between the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund in the same
proportion as other payroll tax revenues are allocated under
section 201(b) of the Social Security Act (42 U.S.C. 401(b)).
SECTION 6. REPORTING REQUIREMENTS.
(a) Annual Report.--Not later than November 1, 2027, and
annually thereafter, the Commissioner of Social Security shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate and House of Representatives of the United States of Americaa
report on the implementation of this Act, including--
(1) the total amount of additional revenues collected as
a result of the amendments made by section 3;
(2) the number of workers who paid Social Security
payroll taxes on wages or self-employment income in Congress assembled,
**SECTION 1. SHORT TITLE.**
Thisexcess
of the contribution and benefit base;
(3) the impact of such additional revenues on the
actuarial status of the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance
Trust Fund;
(4) the projected year of trust fund reserve depletion
under current law, taking into account the amendments made
by this Act; and
(5) any administrative challenges encountered in
implementing this Act and recommendations for addressing
such challenges.
(b) Public Availability.--The Commissioner of Social
Security shall make each report submitted under subsection (a)
publicly available on the website of the Social Security
Administration not later than 30 days after submission to
Congress.
SECTION 7. REGULATIONS.
Not later than 180 days after the date of enactment of this
Act, the Commissioner of Social Security, in consultation with
the Secretary of the Treasury, shall promulgate such
regulations as may be citednecessary to carry out the amendments
made by this Act, including regulations to--
(1) ensure proper withholding and reporting of Social
Security payroll taxes on all wages without regard to the
contribution and benefit base;
(2) ensure proper calculation and payment of Social
Security taxes on all self-employment income without regard
to the contribution and benefit base;
(3) maintain accurate earnings records for benefit
computation purposes, distinguishing between earnings up to
the contribution and benefit base and earnings in excess of
such base; and
(4) provide clear guidance to employers, employees, and
self-employed individuals regarding their obligations under
the amendments made by this Act.
SECTION 8. EFFECTIVE DATE.
Except as the "Save Social Securityotherwise provided in this Act, this Act of 2025".
**SECTION 2. FINDINGS.**
Congress finds the following:and the
amendments made by this Act shall take effect on January 1,
2027.
(1) The Social Security program provides essential retirement, disability, and survivor benefits to over 67 million Americans.
(2) The Social Security Trustees project that the combined trust funds will become depleted in 2034 without legislative action.
(3) Many seniors rely on Social Security benefits as their primary source of retirement income.
(4) Removing the contribution wage base limit while maintaining current benefit calculation methods will significantly improve the program's long-term financial stability.
(5) This approach ensures that higher-income workers contribute to Social Security on their full earnings while preserving the program's progressive benefit structure.
**SECTION 3. REMOVAL OF CONTRIBUTION AND BENEFIT BASE.**
(a) **Employee Tax**.--Section 3101(a) of the Internal Revenue Code of 1986 is amended by striking "so much of the wages (as defined in section 3121(a)) received by him during any calendar year as does not exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for such calendar year" and inserting "the wages (as defined in section 3121(a)) received by him during any calendar year".
(b) **Employer Tax**.--Section 3111(a) of the Internal Revenue Code of 1986 is amended by striking "so much of the wages (as defined in section 3121(a)) paid by him during any calendar year with respect to employment (as defined in section 3121(b)) as does not exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for such calendar year" and inserting "the wages (as defined in section 3121(a)) paid by him during any calendar year with respect to employment (as defined in section 3121(b))".
(c) **Self-Employment Tax**.--Section 1401(a) of the Internal Revenue Code of 1986 is amended by striking "so much of the self-employment income for such taxable year as does not exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for such calendar year in which such taxable year begins" and inserting "the self-employment income for such taxable year".
**SECTION 4. PRESERVATION OF CURRENT BENEFIT CALCULATION.**
(a) **In General**.--Section 215(a)(1)(A) of the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended by adding at the end the following: "For purposes of this subparagraph, wages and self-employment income credited to an individual for any year after 2025 that exceed the contribution and benefit base that would have been effective for such year under section 230 (determined as if this section had not been amended by the Save Social Security Act of 2025) shall not be counted as wages or self-employment income for benefit calculation purposes."
(b) **Technical Amendment**.--Section 215(e) of the Social Security Act (42 U.S.C. 415(e)) is amended by adding at the end the following: "Notwithstanding any other provision of this title, for individuals who attain age 62 after December 31, 2025, the primary insurance amount calculation shall not include wages or self-employment income that exceed the contribution and benefit base amounts that would have applied under section 230 as such section was in effect on December 31, 2025."
**SECTION 5. CONFORMING AMENDMENTS.**
(a) **Wage Base References**.--Any reference in the Internal Revenue Code of 1986 to the contribution and benefit base under section 230 of the Social Security Act for purposes of determining the amount of wages or self-employment income subject to tax under section 3101(a), 3111(a), or 1401(a) of such Code shall be deemed to be a reference to all such wages or self-employment income without limitation.
(b) **Regulations**.--The Secretary of the Treasury, in consultation with the Commissioner of Social Security, shall prescribe such regulations as may be necessary to carry out the purposes of this Act, including regulations to ensure proper coordination between contribution collection and benefit calculation.
**SECTION 6. EFFECTIVE DATE.**
The amendments made by this Act shall apply to remuneration paid after December 31, 2025, and to taxable years beginning after such date.```
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