Retired in America

Your Guide to a Confident Retirement

  • Home
  • Personal finance
  • Retirement Life
  • Saving & Spending

Will Taxing the Rich Save Social Security? Experts Weigh in

December 14, 2020 · Retirement Life

How much could a revised Social Security tax bring in?

This depends on the plan to be adopted. One proposal, for instance, is the Social Security 2100 Act which would eliminate Social Security’s long-term disparities. The act would modify the method to calculate benefits and provide a universal increase of the taxable percentage of earned income below the taxable maximum. It would also impose a tax on any earned income higher than $400,000.

As estimated by the Committee for a Responsible Federal Budget, the Social Security 2100 Act tax would bring an extra $150 billion per year to Social Security if higher earnings would be taxed. This means that by 2029, the increase would bring around $1.5 trillion in revenue.

See also 26 States That Do Not Tax Your Social Security Benefits.

An active senior woman enjoying a walk in a sunny public park.
A smiling senior walks through a sunny park, illustrating the retirement security provided by payroll taxes.

How fast the wealthy reach the tax cap

According to Forbes, 211 people who made more than $50 million in 2018 would have been able to pay their whole Social Security tax for the year in the first 12 hours of 2019. Talk about fast!

More than that, the Long Angeles Times mentioned that approximately 1,000 people would have likely paid their Social Security tax on the first working day of the new year. For example, Safra Catz, the CEO of Oracle Corporation paid her Social Security tax before midday on New Year’s Day, as reported to Forbes.

Pages: 1 2 3 4 5 6

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • Illustration of a mountain valley town with houses, a clock tower, a wooden directional sign, and lupines at sunrise. 15 Scenic and Affordable Mountain Towns to Retire In
  • An older man with drafting tools overlooks a landscape labeled with ages 60, 70, and 80 along mountain ridges. 401(k) Mistakes Retirees in Their 80s Wish They'd Avoided
  • An older couple sits on the tailgate of a pickup truck holding mugs and overlooking a small valley town at sunset. 8 States Where $250,000 Is Enough for a Comfortable Retirement
  • A smiling senior man in a life jacket paddles a green kayak across a misty lake at sunrise near a wooden dock. 15 Affordable Retirement Towns Near Lakes and Rivers
  • A smiling older man walks a brown Labrador and a black-and-white border collie along a paved park path. 10 Side Gigs for Retirees Who Love Animals
  • Older adults smiling and passing food at an outdoor community dinner in front of a brick town hall at sunset. 11 Affordable Retirement Towns With Active Social Calendars
  • Illustration of an older couple walking past kiosks for pharmacy care, public transit, and residential property savings. 11 Senior Discount Programs Launching or Expanding in 2027
  • Illustration of an open hand catching a gold coin beside a bank vault blueprint against a split city and night sky. 11 Windfalls Retirees Can Receive and How They Are Taxed
  • A senior Asian male baker in a flour-dusted apron arranges fresh sourdough loaves on a bakery counter. The 2027 Social Security Update That Benefits Some Working Retirees
  • A plant grows out of an open government envelope toward a sun reading Saver's Match $1,000 in a landscape. IRS Notices Are Going Out About a $1,000 Retirement Match – Are You Eligible?

Newsletter

Get retirement planning tips, savings strategies, and lifestyle insights delivered to your inbox.

Related Articles

Happy seniors couple in front of their new home

The Most Desired Places to Retire in USA

Men vs. Women: Where do Americans want to retire, based on their gender? It’s no…

Read More →

18 Surprisingly Affordable Retirement Destinations You’ve Never Considered Before

Traverse City, Michigan If seasonal winters don’t scare you, then Traverse City might be just…

Read More →
A smiling grandfather and young girl fly a kite while running along a grassy coastal hill overlooking the ocean.

12 Budget-Friendly Activities for Grandparents and Grandkids

Discover 12 budget-friendly activities for grandparents and grandkids, featuring national park perks, free builder workshops,…

Read More →

10 Beach Towns That Are Perfect For All Retirees

Discover the 10 best beach towns for retirees, featuring affordable coastal destinations with excellent healthcare,…

Read More →

22 Ways to Protect Your Retirement From a Possible Recession

Diversify Your Portfolio “There is never a bad time to diversify with an eye on…

Read More →

9 Easy Ways to Gradually Transition into Retirement

Sabbatical One of the reasons people chose to retire is because they feel exhausted and…

Read More →
A senior couple reviews financial plans on a tablet in a bright, modern kitchen.

11 Social Security Mistakes That Could Ruin Your Retirement

Discover the most critical Social Security claiming mistakes, from triggering the earnings penalty to miscalculating…

Read More →

11 Travel Accessories Every Senior Should Have

Now that we can travel again, after all this time of staying between only four…

Read More →

5 Ways Medicare Will Change In 2021

Medicare will change some things this year, so if you’re a senior who relies on…

Read More →
Retired in America

Your Guide to a Confident Retirement

Inedit Agency S.R.L.
Bucharest, Romania

contact@retiredinamerica.com

Trust & Legal

About Us

Editorial Policy

Advertiser Disclosure

Frequently Asked Questions

Contact Us

Disclaimer

Terms and Conditions

Privacy Policy

Subscribe

Unsubscribe

Categories

  • Personal finance
  • Retirement Life
  • Saving & Spending

© 2026 Retired in America. All rights reserved.