# Who Would Pay If Congress Scrapped the Social Security Payroll Tax Cap? | Cato Analysis 

October 7, 2026 • News Releases 

In [**new analysis**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fwho-would-pay-congress-eliminated-social-security-payroll-tax-cap-0/1/010001a117569087-1e587eb3-418e-4b48-816f-6da041204689-000000/SKmb8bSCECgl_jMDgrTqpeW5IP8=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjAxYzJkNDNmMWNiZDUxYzE0NDlhMGU0MDQ0M2U2MDYyOjc6YTA3NzpkMjBkNDFiYjE3YzQ0YmYxYTlhYmQxM2Y5MDA0YTc0MTFlNDMzMThmNzU4MjI4NmFhY2MxNzVmOTU4MjU2YjgxOmg6VDpO), the Cato Institute’s [**Romina Boccia**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fpeople*2Fromina-boccia/1/010001a117569087-1e587eb3-418e-4b48-816f-6da041204689-000000/fhxGp4sNWZJ721jcP3s-fk8iUSU=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjAxYzJkNDNmMWNiZDUxYzE0NDlhMGU0MDQ0M2U2MDYyOjc6Y2Y5ZTplNWU1ZTJjMDkyMjQyNzRlYzliMGFiYTY3YWNhNGE0YTEwN2MxNTkzMTA2YWY5MWVhYmZhNzE4MGViZWY1MzUzOmg6VDpO) and [**Krit Chanwong**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fpeople*2Fkrit-chanwong/1/010001a117569087-1e587eb3-418e-4b48-816f-6da041204689-000000/FACqM_sots2uoIw2tFGiFTYWYc0=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjAxYzJkNDNmMWNiZDUxYzE0NDlhMGU0MDQ0M2U2MDYyOjc6MDU3Mjo1ZDAwZmJlYjA4NWIyMTQ1OGMxNTZmMDY5Y2JjODVlZTdkZjJhNGNkOTNkZmE4ZGNmMzY0YmRhNzljZGFjODZhOmg6VDpO) examine who would bear the cost if Congress eliminated Social Security’s payroll tax cap, finding the tax increase would fall disproportionately on workers in affluent Democratic congressional districts and on medical professionals.

- **62.7 percent** of workers earning above the taxable maximum live in Democratic districts. The average Democratic district has **92 such workers per 1,000 residents**, compared with 53 in the average Republican district.
- The **10 congressional districts with the highest shares of affected workers are all represented by Democrats**, concentrated in New York City, Seattle, and coastal California.
- **Surgeons, physicians, nurse anesthetists, architectural and engineering managers, and dentists** are among the most affected occupations. Roughly 8 in 10 surgeons and 6 in 10 physicians earn above the current taxable maximum.

Boccia and Chanwong argue that eliminating the cap would **at best close about 30 percent of Social Security’s funding shortfall**, while increasing marginal tax rates on highly productive workers and potentially reducing work, saving, investment, and long-run economic growth. They argue Congress cannot tax its way around the need to confront the program’s growing benefit obligations.

If you’re interested in speaking with Romina about this [**analysis**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fwho-would-pay-congress-eliminated-social-security-payroll-tax-cap-0/2/010001a117569087-1e587eb3-418e-4b48-816f-6da041204689-000000/Fy3Y-VSUbniNYDNJyarH2YoWYVc=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjAxYzJkNDNmMWNiZDUxYzE0NDlhMGU0MDQ0M2U2MDYyOjc6NzE1NTphZGY3N2VlOTI1ODhlMWU2NjE3ZTQ4NGYyZjk5N2UyYmI2NjhiZTYyYzhhZjIwY2NkZDg5NDM3YTQ1YzZkMjQ5Omg6VDpO), I’m happy to connect you.

Best,

Ryan Carver 
***Media Relations Manager*** 
*540–589‑0573* 
Cato Institute 
1000 Massachusetts Avenue, N.W. 
Washington, DC 20001

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