Technology is advancing around the world day by day and now robots and artificial intelligence is taking over workplaces and doing tasks that humans once did.
With that being said, the Social Security program has been a simple system. Workers pay Social Security taxes during the employment years, and this is used to fund the program to support them during their retirement years.
However, as the years went by, the number of workers has decreased, and the number of retirees has increased. This means that there are more people taking out of the program than people paying into the program.
In an era where human tasks are being replaced with automation, this is getting worse because it’s decreasing the number of people that are in the workforce.
The Era of Robots and Artificial Intelligence
Around the world, we are beginning to see the rise of robots and artificial intelligence taking over the workspace. Some stores have robots stocking the shelves or delivering packages and some places, there is an automated system to answer customer calls.
Unfortunately, robots are considered machinery and equipment and therefore, there is no payroll tax for them. This simply means that if a worker who was once paying Social Security taxes is replaced by a robot, the Social Security program then loses the money that the worker used to contribute into the program.
The Problem it Creates for Social Security
Research suggest that the Social Security program is already facing a funding crisis and if not changes, millions of Americans could see a cut of approximately 24% in their Social Security checks by 2034. This will surely be a problem for all those who depend on Social Security as their primary source of income.
The Solutions That Were Put Forward
Mant solutions were put forward such as raising the retirement age, increasing payroll taxes or even reducing future benefits; however, these ideas received a lot of criticism because citizens don’t want to work longer or pay more taxes neither do they want smaller benefits. Because of this backlash, nothing was made official or approved.
Introducing the Idea of a “Robot Tax”
The idea of robot tax is pretty straightforward. This proposes that when a company replaces a human worker with a robot, they should pay taxes similar to what they would have paid if it were a human worker. This tax would help replace the money lost when human jobs disappear.
Some Experts Are Not Concerned About The Future of The Workforce
There are a few experts who believe that the rise of technology may not cause serious harm to the Social Security program but rather make room for new jobs to be created. Instead of being replaced by robots, workers may move to newer roles and still contribute Social Security taxes.
Now, The Government is Concerned
As the workforce continues to grow with robots and automation, the government is concerned because they need to make a change as soon as possible. They cannot wait until the tax base is completely depleted and the Social Security program is about to collapse, solutions need to be put forward as soon as possible.
Millions of Americans rely on Social Security as their source of income, and it is important that decisions are made to ensure that the program remains sustained for future retirees. Even though the idea of the robot tax might not be the best solution, but it is gaining momentum which highlights that this is a real-life problem.
The government needs to implement a solution that will ensure the Social Security program is able to serve the needs of citizens.