Millions of Social Security recipients could see their annual benefits increase by $2,400 under a proposal championed by Vermont Senator Bernie Sanders. “If Congress does not act within the next six years, Social Security benefits will be cut by 22 percent. What to KnowCurrently, workers and employers each pay a 6.2 percent Social Security payroll tax, but only on earnings up to a certain limit. In 2026, that cap is $184,500, meaning income above that threshold is not subject to Social Security payroll taxes. Under Sanders’ plan, Social Security payroll taxes would be applied to all income above $250,000, including investment income such as capital gains and dividends.