Sen. Bernie Sander‘s (I-Vt.) Social Security tax proposal drew pushback from Marc Goldwein, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, who said, “Sorry, the math doesn’t quite math here.”
In a post on X on Thursday, Goldwein questioned whether raising or eliminating the Social Security payroll tax cap would deliver the funding and benefit increases Sanders has proposed.
Goldwein Says Tax Changes Have Trade-Offs
Goldwein said the government should consider raising or repealing the taxable earnings maximum, although he noted it was “not my first choice.” He said the change could close “~half the shortfall if you don’t pay benefits.”
Goldwein also argued that taxing capital gains could raise more money for Social Security, but said the government could lose almost all of that revenue on the income tax side because capital gains would be taxed above their revenue-maximizing level.
“Other investment taxes could generate more, but the benefit expansions are also expensive,” he added.
Sanders Says Taxing High Earners Could Expand Benefits
Goldwein was responding to a post Sanders shared on X on Wednesday, in which the senator argued that billionaires pay the same amount into Social Security as someone earning $184,500 a year.
Sanders proposed applying Social Security payroll taxes to income above $250,000, writing that the change would keep the program solvent for 75 years and expand benefits by $2,400. “Let’s do it,” Sanders added.
Research on the proposal highlights a trade-off between funding and benefits. Last month, Roosevelt Institute research analysis found that eliminating the taxable earnings cap could close 67% of Social Security’s 75-year funding gap, falling to 48% if benefits also increased.
Another modeled scenario by The Tax Foundation estimated that raising the taxable maximum to $346,000 starting in 2027 could result in nearly 900,000 fewer jobs and a 0.7% reduction in gross domestic product.
A Community Note attached to Sanders’ post said the Social Security Administration had modeled uncapping payroll taxes without changing benefits and found annual surpluses would last only through 2029 before deficits resumed.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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