Annual Earnings Cap on Social Security Contributions

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Fund Social Security by Taxing the Rich, Not Workers

AKA “Protect Social Security Without Raising Taxes on Working Americans”


Which agency/agencies promulgated the regulation? *
Congress / Social Security Administration (SSA) / Internal Revenue Service (IRS)
Which title, parts, and/or sections of the Code of Federal Regulations (C.F.R.) should be rescinded? *
Rescind or amend the regulatory and statutory provisions that impose an annual wage base limitation on Social Security contributions: 26 CFR § 31.3121(a)(1)-1 – IRS regulation limiting the amount of wages subject to FICA taxation 26 U.S.C. § 3121(a)(1) – Internal Revenue Code provision establishing the statutory wage base cap 42 U.S.C. § 409(k)(1) – Social Security Act provision defining the annual limit on wages subject to Social Security taxation The indexing methodology described in 42 U.S.C. § 430 may also be rendered obsolete if the wage base cap is eliminated.
What is your name?
—OPTIONAL--
Is your proposed rescission a notice of proposed rulemaking, final rule, direct final rule, interim final rule, or interpretive rule? *
Notice of Proposed Rulemaking
What is the name of the regulation being rescinded, if applicable? *
Annual Earnings Cap on Social Security Contributions
Please provide a short summary of the justifications for the rescission. *
Rescind the regulatory and statutory cap on annual wages subject to Social Security taxes, ensuring all earned income is taxed equally to support program solvency and fairness.
Please insert the address of the agency. [NPRM, DFR, and IFR only]
Social Security Administration Office of the Commissioner 6401 Security Blvd Baltimore, MD 21235
Please insert the contact information for the agency. *
Mark Steffensen, Acting Deputy Commissioner and General Counsel of the Office of Law and Policy, 6401 Security Blvd., Woodlawn, MD 21235; (410) 965-6955.
What is the background for the regulation being rescinded? *
The current system taxes only the first $168,600 of a worker’s earnings (2024 limit) for Social Security. Income earned above that threshold is exempt, creating a regressive structure that benefits the wealthiest wage earners while underfunding a critical social insurance program.
Explain the reasons for the rescission. *
Eliminating the wage cap will: • Ensure that high earners pay into Social Security at the same rate as middle- and low-income workers • Extend the solvency of the Social Security Trust Fund by decades • Reinforce the program’s original promise as a universal, earned benefit — not a regressive subsidy for the wealthy
Describe the text of the relevant C.F.R. provisions as it will exist after the rescission. *
The Social Security wage base limitation shall be eliminated. All earned wages, without cap, shall be subject to Federal Insurance Contributions Act (FICA) taxation for Social Security purposes.
Please insert the name of the current agency head. *
Leland Dudek
Please insert the title of the agency head. *
Acting Commissioner of Social Security Administration

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