Saving Social Security Might Involve Raising Taxes. Here's Why It May Not Be as Bad as You Think
You pay 6.2% of the first $176,100 you earn in Social Security payroll taxes in 2025. Self-employed workers pay even more. That's already a pretty substantial bite out of your annual income, so it makes sense if you're not a fan of raising payroll taxes as a way to keep Social Security solvent.But the fact remains that the program is now less than a decade away from being unable to pay out all scheduled benefits. If we don't want smaller checks in retirement, Congress has to find a way to increase Social Security's income. Higher payroll taxes are likely going to be a part of whatever fix it comes up with, but it might not be as painful as you'd imagine for the following reasons.Image source: Getty Images.Continue reading
You pay 6.2% of the first $176,100 you earn in Social Security payroll taxes in 2025. Self-employed workers pay even more. That's already a pretty substantial bite out of your annual income, so it makes sense if you're not a fan of raising payroll taxes as a way to keep Social Security solvent.
But the fact remains that the program is now less than a decade away from being unable to pay out all scheduled benefits. If we don't want smaller checks in retirement, Congress has to find a way to increase Social Security's income. Higher payroll taxes are likely going to be a part of whatever fix it comes up with, but it might not be as painful as you'd imagine for the following reasons.
Image source: Getty Images.
