Social Security tax hike would be "financially impossible" for many, expert says
Updated on: September 23, 2026 / 2:30 PM EDT / CBS News
TL;DR
- A proposed payroll tax increase to 17% from 12.4% to fund Social Security could add $2,600-$3,000 annually for a median worker, a cost considered financially impossible for many.
- The Social Security trust fund is projected to run out in 2032, potentially leading to a 22% benefit cut if Congress does not act.
- Raising or eliminating the maximum income subject to Social Security tax ($184,500) is an alternative attracting bipartisan support.
- Some experts believe a combination of revenue generation (e.g., raising the tax cap) and benefit reductions (e.g., increasing retirement age, limiting benefits for high earners) is needed.
- An economist from the Cato Institute argues that benefit reductions are a more critical component for Social Security's long-term survival.