The Effect of Increasing Earnings Dispersion on Social Security Payroll Tax Receipts

Working Paper by Richard W. Kopcke, Zhenyu Li, and Anthony Webb

May 21, 2014

Abstract This paper decomposes trends in the distribution of earnings over the period 1982-2009 and calculates the effect of increases in dispersion in wage and salary earnings on revenues from the U.S. Social Security Old-Age and Survivors Insurance payroll tax. This tax is levied on earnings, up to a maximum that, with minor changes, has…

Cheerful senior man at home looking at his mail

How Does the Personal Income Tax Affect the Progressivity of OASI Benefits?

Working Paper by Norma B. Coe, Zhenya Karamcheva, Richard W. Kopcke, and Alicia H. Munnell

November 21, 2011

Abstract This study calculates the impact of federal income taxes on the progressivity of the Old Age and Survivors Insurance (OASI) program. It uses the Health and Retirement Study (HRS) data linked with the Social Security Earnings Records to estimate OASI contributions and benefits for individuals and households, before and after income taxes, for thr…