Social Security<\/a> payroll taxes provide the bulk of the program’s income each year, but compared to their annual incomes, ordinary Americans face a much bigger burden than the wealthy. These taxes only apply to the first $184,500 you earn in 2026, regardless of your income. <\/p>\n If you earn $60,000 per year, you’re paying these taxes on every dollar you make. If you make $1 billion in a year, you’ve likely finished paying your Social Security taxes on Jan. 1. The ceiling on taxable income for Social Security increases slightly each year, but it still leaves wealthy people paying these taxes on only a fraction of their earnings. <\/p>\n Raising the ceiling, as O’Malley suggested in a recent interview with NewsNation, would go a long way toward alleviating the burden on Social Security’s dwindling trust funds. The program would take in more revenue each year without affecting ordinary Americans, many of whom are already under financial strain. <\/p>\n But what proponents of this approach often leave out is that it wouldn’t be enough. Even if you eliminated the cap and made wealthy Americans pay Social Security taxes on every dime they earned without increasing the benefits they qualify for, it would only eliminate about 67% of the projected funding shortfall. That’s a huge weight lifted, but it means average earners will still have to brace for changes. <\/p>\n What will the Social Security fix look like? <\/p>\n Raising the payroll tax ceiling could be part of Congress’ plan to fix Social Security, but it won’t be the whole solution. It could also involve a combination of raising the payroll tax rate (currently 12.4%, split evenly between employees and employers) across the board, raising Social Security benefit taxes on seniors, or raising the full retirement age (FRA)<\/a>. <\/p>\n We don’t know what it’ll decide yet, and we may still have to wait a while before it settles on a plan. But when it does, everyone will need to revisit their retirement plans and make changes. <\/p>\n The\u00a0$23,760\u00a0Social Security bonus most retirees completely overlook <\/p>\n If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known\u00a0“Social Security secrets”<\/a> could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. <\/p>\n Many Americans leave money on the table in retirement. Learn more about these retirement strategies and more, available when you join Stock Advisor. <\/p>\n View the “Social Security secrets” \u00bb<\/a> <\/p>\n The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. How taxing the rich could help Social Security <\/p>\n