Ohio – A rare bipartisan partnership has emerged in the U.S. Senate as Republican Bernie Moreno of Ohio and Democrat Elizabeth Warren of Massachusetts are working together on legislation they argue could help secure the future of Social Security. Despite their sharp political differences on many issues, the two senators say the retirement program’s growing financial challenges require lawmakers from both parties to find common ground before millions of Americans face reduced benefits.
In a joint opinion, Moreno and Warren introduced their proposal to eliminate the current cap on Social Security payroll taxes. They argue that the change would require higher-income Americans to contribute the same share of their earnings as middle- and lower-income workers, generating significant additional revenue for the program.
The senators opened by highlighting just how unusual their collaboration is. “One of us is a Republican from Ohio who built a business that generated hundreds of jobs. The other is a Democrat from Massachusetts who built a career protecting consumers from financial tricks and traps.”
They then explained the issue that brought them together. “We don’t agree on everything, but here’s one thing we do agree on: Congress must act now to save Social Security for generations of Americans to come.”
According to the lawmakers, Social Security remains one of the federal government’s most important commitments to American workers who contribute throughout their careers with the expectation that the program will support them in retirement. “Social Security is a core component of our nation’s promise — a covenant between the federal government and Americans who pay into it throughout their working years so they can retire with dignity.”
A proposal focused on high-income earners
The central piece of Moreno and Warren’s plan is ending the payroll tax cap that currently limits how much income is subject to Social Security taxes.
At present, employees and employers each pay a 6.2% Social Security payroll tax on earnings up to $184,500 per year, for a combined rate of 12.4%. Income earned above that threshold is no longer subject to the Social Security payroll tax, although other taxes, including Medicare taxes, still apply.
The senators argue that this system places a proportionally heavier burden on ordinary workers than on Americans with much higher incomes. “Why should a middle-class nurse pay a larger share of her paycheck — than a wealthy corporate lawyer? This is doubly unfair in an economy in which top earner’s wages, over time, have pulled far ahead of those of the average worker.”
They contend that removing the cap would create a fairer system while also strengthening Social Security’s finances. “This is a no-brainer: the wealthiest Americans, who have benefited the most from America’s opportunities, should contribute the same percentage of their income as a factory worker in Chillicothe, Ohio, or a teacher in Worcester, Mass.”
According to estimates cited by the senators from the Peter G. Peterson Foundation, lifting the payroll tax cap could generate more than $3 trillion for Social Security over the next decade. However, the Social Security Administration has said that eliminating the cap alone would resolve only about half of the program’s projected long-term funding gap, meaning additional reforms would still be needed.
Time running short for Social Security
The proposal comes as concerns grow about the financial future of the nation’s largest retirement program.
A trustees’ report released by the Social Security Administration earlier this month projects that the retirement trust fund will become significantly depleted by late 2032. If that happens as expected, only about 78% of scheduled retirement benefits would be payable during the final quarter of that year unless Congress acts beforehand.
The updated projection moved the expected depletion date forward from the previous estimate of early 2033, increasing pressure on lawmakers to address the program’s finances.
Moreno and Warren argue that Americans have earned the right to expect the benefits they have paid for during decades of work. “Most Americans work into their 60s or 70s. Throughout their working lives, they pay into Social Security with the understanding that it will help them support themselves in retirement. With rising prices and artificial intelligence causing economic uncertainty for the future, Social Security must remain a stable foundation to help retirees afford life’s basic necessities.”
Their proposal stands out because it brings together two senators from opposite ends of the political spectrum. While Democrats have often supported raising taxes on higher-income earners, most Republicans have opposed removing the payroll tax cap, arguing that it would amount to a significant tax increase for businesses and wealthy Americans. Moreno is one of the few Republican senators publicly backing the idea.
The pair framed their effort as an attempt to revive the bipartisan spirit that originally created the program. “Social Security was created by overwhelming bipartisan congressional majorities. Today, members of Congress from both parties must come together again to save it. That’s why the two of us are working together on legislation to remove the cap on Social Security taxes and extend the solvency of our retirement system. Americans deserve nothing less. Preserving the American dream for our children and grandchildren depends on it.”
While the proposal has already generated attention because of the unlikely partnership behind it, its path through Congress remains uncertain. Senate Finance Committee Chairman Mike Crapo declined to comment directly on the plan, although his office noted that a Senate subcommittee hearing on the future of Social Security was scheduled for Wednesday. As debate over the program’s long-term finances continues, Moreno and Warren are hoping their bipartisan proposal will encourage broader discussions on how to preserve Social Security for future generations.
