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Your email address will not be published.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

  • Smiling older park guide handing a trail map to someone against a sunny mountain lake backdrop. 8 Charming Resort Towns Perfect for Retirees Who Enjoy Seasonal Work
  • An older couple stands inside a modern living room looking out a large sliding glass door toward a sunny desert neighborhood. 10 Biggest Reasons So Many Retirees Say They Regret Moving to Arizona
  • Senior man sitting in a wooden armchair on a stone patio holding a mug, overlooking a desert landscape with mountains. 10 Underrated Southwest Towns Where You Can Retire on $1,500 or Less a Month
  • Older couple standing on a screened patio looking at a lake under storm clouds, with bills on a table in front. 8 Reasons You Don’t Want to Retire in Florida, According to Floridians
  • Older man writing with a pencil and woman reviewing an IRS Schedule A tax form at a wooden table with a calculator. What the 2026 Senior Tax Deduction Means for Retirees
  • A man sits at a wooden table in a sunlit kitchen, looking down intently at a financial document. Who Benefits From Trump’s 401(k) Plan (and Who Won’t)
  • A senior man sitting at a wooden table examines an investment portfolio document next to a notebook and coffee mug. 4 Boring Moves To Do Now to Add Hundreds to Your Social Security Check
  • A senior woman sits at a wooden table holding a mug and gazing out a bay window beside a newspaper and open notebook. 9 Things Single or Widowed Retirees Should Know
  • Senior couple sitting at a wooden kitchen table reviewing paperwork and financial notes with a calculator and coffee. 10 Financial Traps That Catch Retirees Off Guard
  • A smiling senior woman reaches into a wooden pull-out drawer filled with labeled food jars in a sunlit kitchen. 15 Simple Fixes for Everyday Senior Life

Newsletter

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

Related Articles

11 Seniors Worthy of Admiration

Let’s take a moment to sit and ponder: one in seven adults in America today…

Read More →

10 Things You Can Use Your Health Savings Account For

If you have a qualified high-deductible health insurance plan, you can open a health savings…

Read More →

10 Best States for Retirees to Settle Down

5. South Dakota Not only will you enjoy more of your savings by dodging an…

Read More →

7 Most Atrocious Nursing Homes In America

4. Illinois If you live in the Midwest and are looking for a nursing home…

Read More →

22 Ways to Live a Comfortable Retirement on Social Security Alone

Sign up for Medicare Once you become eligible for the Medicare federal program that subsidizes…

Read More →
An older couple stands inside a modern living room looking out a large sliding glass door toward a sunny desert neighborhood.

10 Biggest Reasons So Many Retirees Say They Regret Moving to Arizona

Learn why so many retirees regret moving to Arizona, including brutal summer heat waves, physician…

Read More →
Why More Retirees Are Choosing Part-Time Work In 2026

Why More Retirees Are Choosing Part-Time Work In 2026

Discover why older adults are choosing part-time work in 2026, and learn how to navigate…

Read More →
Happy seniors couple in front of their new home

The Most Desired Places to Retire in USA

Males opt for Southwest and Southeast for retirement What is it that men want in…

Read More →
A stressed older couple sits on the floor of an empty living room surrounded by unpacked cardboard moving boxes.

5 States Retirees Regret Moving to, Based on Cost and Lifestyle

Discover the 5 states retirees regret moving to most due to high property taxes, soaring…

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.