State Rep. Lindsay James (D-Iowa) said removing the wage cap on Social Security taxes and tying it to cost-of-living increases is one way Congress can shore up the program’s finances.
James, the Democratic nominee for Iowa’s 2nd Congressional District, made the remarks on Wednesday during a Social Security town hall in Cedar Rapids, Iowa, alongside Martin O’Malley, former Commissioner of the Social Security Administration, and entertainer Jon “Bowzer” Bauman.
“An Earned Benefit”
“Social Security is such an important program. It is an earned benefit,” James said. “It is a way in which our seniors can retire with dignity, live in independence, and weather whatever challenges that they face.”
James said she hears from constituents “making impossible choices because they’re living on fixed incomes,” and called Social Security one of the most important programs the country can preserve.
Removing The Cap
“I think removing the caps is the very first thing that we want to do to have an influx of resources,” James said. She added that the cap should eventually be tied to cost-of-living increases “so that this continues on and goes forward and grows with time.”
James said those who “need to pay their fair share into the system” would help sustain the program long-term.
A Broader Fight
James’s proposal echoes a wider Democratic push. Sen. Bernie Sanders (I-VT) has floated a similar cap removal on income above $250,000, arguing it could extend solvency for 75 years while boosting benefits by $2,400 annually.
The debate comes as the Social Security retirement trust fund is projected to run dry by 2032, which could trigger a 22% cut to benefits without congressional action. Some Republicans, including Rep. Tom Cole (R-Okla.), have also grown open to raising payroll taxes rather than risk the program’s collapse.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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