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Jonathan Ernst | Duddy
Most workers may expect to see social security salary taxes received from their payment throughout the year.
But senior winners with $ 1 million in annual annual salary income have already banned paying the program since March 6, according to the Center for Economic Research and Policy.
In 2025, workers are subject to salary taxes up to $ 176,100 profits. Workers pay a 6.2%social security tax rate, which matches their employers, for a total of 12.4%.
After the top winners hit that cap of $ 176,100, they no longer contribute to the program for the rest of the year.
“Elon Musk has already reached that cap of $ 176,100 within the first minutes of 2025 only in the annual gross salary revenue,” Emma Curchin, a search assistant at the Economic and Political Research Center, said.
This does not include the income from the investment he earns, which is not subject to social security salary taxes, she said.
Approximately 6% of employees have income from taxable maximum, according to the Social Security Administration.
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After all, the highest winners who contribute to the program up to the highest taxable profits each year for most of their careers will receive the maximum pension benefit.
In 2025, the maximum social security benefit for a retirement worker at the age of full retirement is $ 4,018 per month.
Meanwhile, the average monthly benefit for retirement workers is $ 1,976 a month in 2025.
Congress may cheat by eliminating pay tax lids
While social security trust funds face a date of imminent bankruptcy, some proposals have suggested eliminating or removing the lid for income subject to social security tax.
Last year, social security believers envisioned the fund on which the program is based on paying pension benefits can last by 2033. At that time, 79% of the planned benefits will be paid.
To prevent these benefits, Congress can take into account a variety of tax growth or decrease in benefits.
A recent study found that the most popular policy option would be to eliminate the salary tax lid for more than $ 400,000, according to the National Academy of Social Security, AARP, the National Institute for Pension Security and the US Chamber of Commerce. Change will not provide additional benefits for the highest winners affected.
The survey also revealed that Americans would be open to higher taxes to provide benefits or stay the same or increase.
“They are willing to pay more, not to receive additional benefits for themselves, but only to close the financing gap to prevent without distinction throughout the Board’s Benefits,” Tyler Bond, the Director of Research for the National Institute for Pension, previously said CNBC.com.
Another respondent of respondents of favored change survey is to reduce benefits to individuals with higher pension income, excluding social security. This would apply to individual retirees at $ 60,000 or more in addition to social security per year and married couples with $ 120,000 or more per year.
“By removing the lid, the social security trust fund can be much healthier and safer,” Curchin said.
But it’s not enough. To restore the program’s solvency, searching has shown a combination of changes.