Do Income Taxes Affect the Progressivity of Social Security?

Policymakers have designed Social Security to be
a progressive retirement program that replaces a
larger share of monthly earnings for low- and middleincome workers than for high earners. However,
previous research has found that, although the Disability Insurance (DI) component of Social Security is
very progressive, the Old-Age and Survivors Insurance (OASI) component may be less progressive than
intended. One reason is that high earners tend to
live longer than low earners. Since Social Security
pays an annuity that lasts throughout retirement, it
benefits high earners with greater longevity.
Social Security’s progressivity may also be