> ## Content Index
> Fetch the complete content index at: https://dagen.net/llms.txt
> Use this file to discover other available public pages before exploring further.

# Will taxing the rich help?
- URL: https://dagen.net/will-taxing-the-rich-help/
- Published: 2026-11-01T08:36:49.000Z
- Updated: 2026-11-01T08:36:49.000Z
- Author: Damon Gentry
- Tags: Social Security

Here in 2026, Social Security is a well-discussed topic on social media. If Congress does nothing, benefits paid to retirees may be reduced by 17% in 2032\. Many of our elected leaders have suggested we could close the social security funding gap if we simply eliminated the ceiling on taxable income when it comes to social security withholding.

In 2026, the ceiling is at $184,500\. Next year, it will rise to $192,300 (it is adjusted annually based on changes in the national average wage index). This means that the maximum high earners contribute to social security is $11,439 (6.2% of $184,500), or $439.84 per paycheck (assuming 26 paychecks per year). If you happen to earn more than this amount, once you've contributed the maximum, you'll see a slightly higher paycheck in the late months of the year. 

Senators Elizabeth Warren (D-MA) and Bernie Moreno (R-OH) are leading a prominent bipartisan push to eliminate the ceiling on withholding. Sen. Warren refers to it as a 'tax loophole'. She claims it's not fair that a teacher earning $60,000 a year pays a higher percentage of their income into Social Security than someone earning $10,000,000 per year. 

![](https://dagen.net/content/images/2026/11/sen_warran_ssi_withholding.png)

The question I ask is: would this proposal actually close the gap? Well, let's review the data.

Today, there are 8 million households earning more than the current ceiling of $184,500\. That's about 6% of tax filers. The combined income they earn that is above the current wage cap is estimated to be $2.1T to $2.4T. 

Let's assume Congress passed a bill to remove the social security wage cap and taxed all wage and salary income. There are 2 scenarios to consider: 

- Should high income earners also receive a higher social security benefit in retirement?
- Should high income earners simply maintain the current cap on benefits, in order to maximize the funding gap?

Under the first scenario, high earners would see their benefits increase beyond the current benefit cap of $4,152 per month. This is the current 'full retirement benefit' at age 67\. If we do this, the funding gap is closed by 48% (estimated in 2026 by the Social Security Trustees). 

Under the second scenario, the funding gap is reduced by 67%. However, this turns Social Security into more of a wealth-transfer program than it is today. 

Many people may not realize that under current regulations, higher income earners receive, on a percentage basis, less than low income earners in retirement. A lower-income worker often sees their benefit replace roughly **50% or more** of their average lifetime earnings, whereas a high income earner can expect to see between 22% and 33% of their average lifetime earnings. Social security, today, is a progressive tax. 

Under either scenario, simply taxing the rich does not fully fund the structural problems of the Social Security program.