HR 4968 would raise Social Security taxes on wages above $176,000
In committeeH.R. 4968Latest action
Sponsor: Jill N. Tokuda · Representative · HI
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Official title: Protecting and Preserving Social Security Act
119th Congress
Topics: Family & community
Introduced:
Read the official bill on Congress.govIn plain words
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HR 4968 removes Social Security's wage cap for earners above ~$176,000 by 2032 and creates a new inflation index for recipients 62 and older.
65-second read · 5 questions answered below
What does this do?
HR 4968 makes two changes to Social Security. It replaces the current general inflation formula for annual cost-of-living raises with a new price index built around the actual spending patterns of people 62 and older, such as healthcare and housing. It also phases out the payroll tax wage cap between 2026 and 2031, so that starting in 2032 all wages above the current limit are subject to Social Security taxes.
Who does it affect?
Current Social Security recipients and workers earning above roughly $176,000 a year are most directly affected. Employers of high earners would also pay more in matching payroll taxes, while lower and middle income workers would see no change.
Why does it matter?
Older Americans tend to spend differently than the general population, particularly on healthcare and housing, which the current inflation measure does not specifically account for. Removing the wage cap would require higher earners and their employers to pay Social Security taxes on a larger share of income starting in 2026.
What does it cost, and who pays?
- Wage cap removed above ~$176,000 by 2032
- Employers pay matching payroll taxes
- Higher earners get modest extra benefit
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Where does it stand?
- IntroducedAug 12, 2025
- House committeeYou are here · Aug 12, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.