At a time when Social Security’s future remains uncertain, Senator Ron Wyden (D-Ore.) has proposed a clear and feasible path to secure its long-term solvency: taxing the ultra-wealthy. During a Senate Budget Committee hearing this week, Wyden, the Democratic chair of the Senate Finance Committee, highlighted how the ultra-wealthy are dodging nearly $2 trillion in taxes every decade—a sum that could ensure Social Security is fully funded through the end of the century.
Wyden’s remarks were made during a hearing titled “Social Security Forever: Delivering Benefits and Protecting Retirement Security,” which brought into focus the need for tax reform to protect the program millions of Americans rely on. As Social Security faces funding concerns, Wyden’s solution stands in stark contrast to the GOP’s approach, which includes proposals to cut benefits or raise the retirement age. “The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years,” Wyden stated. “That is enough to keep Social Security whole till the end of this century.”
Wyden’s call to action centers around the systemic issue of tax evasion by the richest Americans. The senator pointed out that by utilizing loopholes, offshore accounts, and complex financial instruments, the ultra-rich are able to shield a massive portion of their wealth from taxation. These strategies deprive the U.S. Treasury of revenue that could otherwise be directed to essential social programs, including Social Security.
Social Security, which lifted 28 million people out of poverty last year alone, remains one of the most vital safety nets in the United States. It is currently projected to remain fully funded until 2035, but beyond that, the program will face challenges without additional funding. Wyden emphasized that by addressing the massive tax avoidance by the wealthy, Congress could easily ensure that Social Security remains solvent for generations.
The Senate Budget Committee hearing featured testimony from Social Security Administration Commissioner Martin O’Malley, who underscored the inequities in the current payroll tax system. O’Malley drew attention to the fact that millionaires and billionaires effectively stop paying into Social Security just 60 days into the year due to the payroll tax cap. “Warren Buffett stops paying into Social Security 30 seconds into the new year,” O’Malley noted, “and the people that clean these buildings pay in all through their paychecks.”
The hearing also featured remarks from Sen. Sheldon Whitehouse (D-R.I.), chair of the Senate Budget Committee, who criticized GOP proposals to raise the retirement age. Whitehouse pointed out that such a measure would disproportionately harm low-income workers who rely on Social Security for survival in retirement. “If Social Security benefit cuts really are off the table, that leaves only one other option to prevent insolvency: raise revenue,” Whitehouse said. “There is no third option.”
Whitehouse and Wyden are both proponents of tax reform measures like the Medicare and Social Security Fair Share Act, which aims to raise revenue by ensuring the wealthy pay a fair share into the programs they benefit from.
As the hearing unfolded, it became clear that the 2024 presidential election will also play a significant role in the future of Social Security. Democratic nominee Kamala Harris has promised to protect the program, while Republican nominee Donald Trump has been largely silent on the issue. During a recent debate, Harris pledged to safeguard Social Security and ensure it continues to lift millions of Americans out of poverty.
“Donald Trump was mum on the topic,” Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, noted. He criticized Trump’s past comments, including calling Social Security a “Ponzi scheme” and expressing openness to cutting entitlements. “One candidate in this race will truly protect Social Security and Medicare—and that is Kamala Harris,” Richtman said.
Trump’s silence on the issue is especially concerning given the Republican Party’s long history of advocating for cuts to entitlement programs. While some Republicans have attempted to distance themselves from the idea of cutting Social Security, the party has consistently pushed for raising the retirement age—a proposal that would hit working-class Americans the hardest.
One of the most glaring inequities in the current system is the payroll tax cap, which limits how much high-income earners contribute to Social Security. In 2024, the cap was set at $160,200, meaning that after reaching this income threshold, individuals no longer pay into Social Security for the rest of the year.
This system allows the wealthiest Americans to contribute a disproportionately small percentage of their income compared to middle and lower-income workers. Wyden’s proposal to eliminate or raise the payroll tax cap would force the wealthiest Americans to contribute fairly, helping to secure Social Security’s future without cutting benefits.
Wyden and other progressive lawmakers argue that eliminating the payroll tax cap is the most effective way to ensure the long-term solvency of Social Security. Proposals like the Medicare and Social Security Fair Share Act would raise revenue by making the wealthy pay their fair share into these essential programs. Additionally, public opinion polls show broad support for these measures, as Americans increasingly recognize the importance of fair taxation to protect vital social services.
As Wyden highlighted during the hearing, addressing tax evasion by the ultra-rich could ensure that Social Security remains a lifeline for millions of Americans well beyond 2035. “That’s where we ought to go to start making progress,” he said.
“The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years,” Wyden said. “That is enough to keep Social Security whole till the end of this century.”
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