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
The grand stone columns of a historic government building against a blue sky.
Grand columns frame the Department of Justice, the institution overseeing the legalities of federal payroll tax caps.

Politics and the payroll tax

Over the years, politicians have expressed various ideas and proposals for the payroll tax and Social Security. President Donald Trump, for example, authorized a payroll tax-deferral although the Senate and House of Representatives stated that it “would not be in the best interests” of employees.

“Employers don’t see any benefit to their employees from the payroll tax deferral, and to implement it they would bear significant administrative costs and risks,” claimed Mark Zandi, chief economist at Moody’s Analytics. “Without additional financial support in the next few weeks, odds that the economy will backslide in the fourth quarter are well over even.”

In 2018, elected President Joe Biden declared that the Social Security program “still needs adjustments”. Sen. Bernie Sanders proposed a bill that would tax earned income over $250,000 and investment income over $200,000 (for individuals) or $250,000 (for couples), for Social Security benefits.

A modern city skyline at sunset with glowing office windows.
Gleaming skyscrapers illuminate the night sky, representing the high-income sectors central to the Social Security debate.

What will become of the payroll tax?

A great deal of money earned by the wealthy remains untouched by the payroll tax. The money that the payroll tax would bring in if such earnings would be taxed, could give the Social Security program a chance to continue beyond 2035 when it is projected to go bankrupt.

But even with these extra funds, the future of the payroll tax is by no means certain. We all know politics, political parties and political leaders play a huge role. What is certain, though, is that the Social Security program and its associated taxes will probably suffer some changes in the coming years.

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Your email address will not be published.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

  • A senior woman looking thoughtfully at her phone in a bright, modern home office. 6 Social Security Scams You Need to Pay Attention to
  • A happy retired couple enjoying the sunset on a beautiful porch. 8 States to Retire For Less Than 45K a Year
  • A retired couple looking at a map on a sunny balcony overlooking a beautiful coastal town. 10 Countries to Retire Where $150K Is More Than Enough
  • A happy retiree working on a laptop on a sunny patio, symbolizing flexible part-time work. 20 Great Part-Time Jobs For Retirees
  • A senior couple smiling while looking at a tablet in a bright, modern kitchen. 5 Crucial Medicare Changes Coming Soon
  • A senior couple happily unpacking groceries in a bright, modern kitchen. 9 Ways to Shop at Costco Without a Membership
  • A happy retired couple stands on the porch of a beautiful, sunny home, symbolizing an affordable and joyful retirement. 10 Best Places to Retire That Won't Break the Bank
  • An older man confidently using a laptop in a sunlit home office, symbolizing digital security. 7 Common Passwords To Avoid
  • A retired couple looking out a window in their bright, downsized modern home. 11 Mistakes to Avoid When Downsizing Your Home
  • A retired couple smiling on a balcony overlooking a scenic coastal village at sunset. 12 Best Countries to Live Perfectly Well on Social Security

Newsletter

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

Related Articles

A happy senior couple walks through a sunny town square, symbolizing a comfortable and affordable retirement.

These 23 Budget Cities Help Seniors to Retire With $1500/Month

Discover the 23 most affordable retirement cities in the US where seniors can live comfortably…

Read More →

7 Social Security Scams You Need to Pay Attention to

Unusual forms of payment According to Matt Campbell, CFO at Budgetable, there is an easy…

Read More →

30 Cities in USA Way Too Expensive for Retirees

Discover why relocating to these 30 expensive U.S. cities can rapidly drain your retirement savings,…

Read More →

13 Financial Miscalculations That Could Ruin Your Retirement

Dropping Health Coverage in a Nursing Home Even though your health coverage plan might not…

Read More →
A happy retired couple enjoying a sunny afternoon on their patio, representing financial freedom.

8 Types of Retirement Income That Are Exempt From Taxes

Discover 8 effective retirement tax strategies to generate tax-free retirement income, lower your overall tax…

Read More →

Key Things Retirees Wish They Could Tell Their Younger Selves

We cannot go back in time and do things differently, no matter how much we’d…

Read More →
A retired couple reviews financial documents together in a bright, modern kitchen.

Watch Out for These 30 Things That Could Ruin Your Retirement

Discover the 30 critical financial, healthcare, and lifestyle mistakes that could ruin your retirement and…

Read More →

10 Military Communities Where Vets Can Happily Retire

San Antonio, TX – If you’re looking for a place that’s livelier, you’ll enjoy living in…

Read More →

10 Sunny Places to Retire To

Las Cruces, New Mexico – This city’s motto is “Stay Sunny”, so as you can only…

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.