YourVoice.Now Summary
Your MoneyHigh-Earner BenefitsSocial Security raises would track seniors' own costs — and pay above the cap gets taxed by 2032.
Your Money
Raises would follow a price index built from what people 62 and older buy, instead of one built from what wage earners buy. Over the long run that index has run a little higher, though in some years it has run lower.
The extra money from the new raise formula would not count as income or savings when SSI or Medicaid decide if you qualify. It also would not cut the help you already get.
High-Earner Benefits
Pay above the cap does not count toward your future check today. Under the bill it would count at 3 percent, and at 0.25 percent above a set level. Pay under the cap counts at 90, 32, or 15 percent, so the new credit is much smaller.
Social Security tax stops today once your pay for the year passes a cap that a formula resets each year. In 2026 the tax would reach a small share of the pay above that cap. That share would grow each year until every dollar is taxed in 2032. Self-employment income follows the same schedule.
More about this bill
If you get Social Security, your yearly raise would be set a new way. It would follow a price index built from what people 62 and older buy. Today's index tracks what wage earners buy. Over the long run the senior index has run a little higher, though not in every year. The new formula would start about two years after the bill became law. Any extra money from it could not cost you SSI or Medicaid. If you earn more than the yearly Social Security wage cap, more of your pay would be taxed. Today the tax stops at that cap, which a formula in the law resets each year. Starting in 2026, the tax would reach part of the pay above it. That share would grow each year until all of it is taxed in 2032. The same phase-in would apply to self-employment income. Those extra earnings would also start counting toward your future benefit, at a much smaller rate.
Congressional Summary
Protecting and Preserving Social Security ActThis bill eliminates the cap on income subject to Social Security taxes and revises methods for calculating various aspects of Social Security benefits.Under current law, Social Security has a taxable maximum, which refers to the maximum amount of a worker's earnings that are subject to Social Security payroll taxes (set at $176,100 in 2025). The taxable maximum also serves as the maximum amount of earnings used to calculate a worker's Social Security benefits.This bill phases out the taxable maximum so as to apply payroll taxes to all earnings after 2031, and revises the method used to calculate a worker’s Social Security benefits to account for earnings in excess of the taxable maximum.The bill also revises the method of calculating cost-of-living adjustments to Social Security benefits to reflect the spending habits of individuals over the age of 62. An increase in Social Security benefits resulting from this change may not be treated as income for purposes of determining eligibility for, or the amount of assistance provided under, the Medicaid or Supplemental Security Income programs.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-08-12
- Date Added
- 2026-06-04
- Source
- Congress.gov →
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