Raise the Cap on Social Security Wages.

Raising or eliminating the cap on wages that are subject to taxes could reduce the long-range
deficit in the Social Security Trust Funds. For example, if the maximum taxable earnings amount
had been raised in 2005 from $90,000 to $150,000—roughly the level needed to cover 90% of all
earnings—it would have eliminated roughly 40% of the long-range shortfall in Social Security. If
all earnings were subject to the payroll tax, but the base was retained for benefit calculations, the
Social Security Trust Funds would remain solvent for the next 75 years.