...
By Suzanne Blake
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Bernie Sanders is pledging to make a proposed $2,400 yearly increase in Social Security benefits a main priority as he prepares to take a leading role overseeing the program in the Senate.
The Vermont independent who caucuses with Democrats said he expects to become the next chair of the Senate Finance Subcommittee on Social Security and plans to use that position to push for higher benefits. He also said he hopes to shore up Social Security's finances by requiring wealthy Americans to pay more into the program.
“As the next chair of the Social Security Subcommittee, a top priority will be to expand Social Security benefits by at least $2,400 a year & extend Social Security’s solvency for generations,” Sanders said on X on November 7. “How? By scrapping the cap & demanding that the wealthy pay their fair share of taxes.”
Read More on Politics
The $2,400 would be the proposed annual benefit increase, which means an extra $200 per month.
...
Why It Matters
Social Security's finances are approaching a critical deadline, which has increased the pressure on lawmakers to act.
Sanders has said that Congress should respond by increasing taxes on wealthy Americans rather than reducing benefits or raising the retirement age.
The Social Security trust fund is projected to be capable of paying only 78 percent of scheduled benefits in late 2032, which would amount to a potential 22 percent cut if Congress does not act.
“While the Trust Fund's depletion is still an estimated six years away, with how slowly major program changes move in Washington, proposals for change need to start seeing movement now,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
Related Story
Higher Payroll Taxes Could Keep Social Security Safe Until 2059-Report
What to Know
Sanders is expected to be the chairman of the committee responsible for Social Security policy when the new Congress convenes in January. He would succeed Iowa Republican Chuck Grassley as chair, and the new role could give Sanders a more prominent platform to shape hearings and the debate surrounding Social Security.
Sanders' proposal is part of his Social Security Expansion Act, which Sanders, Elizabeth Warren of Massachusetts and other Democrats introduced in 2025. The bill would not just increase Social Security benefits for current and new recipients by $2,400 annually but also subject income above $250,000 to additional Social Security taxation to raise revenue for the program.
The way the annual cost-of-living adjustments are calculated would also change, leaning on the Consumer Price Index for the Elderly, or CPI-E, which is intended to more closely reflect seniors' spending patterns.
“While the elimination of the cap would go some way to Social Security's funding issues, studies have shown it more than likely wouldn't be a permanent fix,” Beene said. “In order for Social Security to survive for future generations, other difficult decisions, like raising the qualifying age or program cuts, may need to be made. Still, proposals like this are needed to move the conversation forward.”
How Would Sanders Pay for the Social Security Increase?
Sanders wants wealthy Americans to pay Social Security taxes on more of their income.
Workers currently pay a 6.2 percent Social Security payroll tax, matched by employers, but the tax applies only up to an annual earnings limit. In 2026, that taxable maximum is $184,500, with the limit scheduled to increase to $192,300 in 2027.
As a result, someone earning significantly above the cap does not continue paying Social Security payroll taxes on wages beyond the annual threshold.
Sanders' legislation would change that structure by applying the Social Security payroll tax to income above $250,000. His proposal also calls for applying the tax to investment income, including capital gains and dividends, above the threshold.
“Scrapping the payroll tax cap would certainly help address some of Social Security's funding issues," Kevin Thompson, the CEO of 9i Capital Group, told Newsweek. "However, if higher earners are paying more into the system, will they also be entitled to larger benefits? That's a question worth asking.”
Sanders said in an August letter to his Democratic colleagues that a 2023 analysis by the Social Security Administration's Office of the Chief Actuary found that such changes could extend Social Security's life by 75 years while still increasing benefits by $2,400 annually.
“At a time when the wealthiest people in America are becoming much wealthier, asking them to pay the same percentage of their income into Social Security as teachers, nurses, firefighters, and construction workers is not a radical idea,” Sanders wrote. “It is common sense. It is what the American people want.”
Could the $2,400 Social Security Increase Pass?
The Social Security Expansion Act was originally introduced in February 2025 by Sanders, Warren and Democratic colleagues. But it has faced opposition from Republicans over the tax increases that would finance it.
Economists are also concerned about the additional strain expanded benefits would put on the Social Security fund.
“I'm not convinced expanding benefits is necessary while we're still trying to resolve the system's solvency issues,” Thompson said. “I believe removing the cap could gain some support as a way to extend the program's longevity, but fixing Social Security will require some difficult conversations.”
What Happens Next
Contact Newsweek editors on this story: Steve Mollman and Dave Siminoff.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines