As
artificial
intelligence
becomes
more
mainstream,
many
people
are
using
it
to
do
things
that
they
would
normally
hire
someone
else
to
do.
AI
is
helping
people
conduct
research,
analyze
options,
and
even
create
artistic
works.
While
this
makes
certain
things
easier
and
more
efficient,
it
means
that
some
people
will
get
reduced
work
or
lose
their
livelihoods.
For
governments
that
have
to
look
at
the
big
picture,
this
means
more
unemployment
which
translates
to
less
tax
revenue,
with
an
emphasis
on
social
security
funding.
Could
AI
pose
a
serious
threat
to
future
social
security
and
Medicare
funding?
If
so,
what
can
be
done
about
it?
Many
people
are
concerned
AI
will
take
over
white
collar
jobs
that
humans
do
now.
While
the
technology
is
not
perfect
—
which
some
lawyers
have
learned
the
hard
way
—
it
is
improving.
The
worry
was
so
bad
that
in
2023,
Hollywood
writers
and
actors
went
on
strike.
to
prevent
studios
from
using
AI
for
drafting
stories
and
using
actors’
likenesses.
Employees
and
business
owners
pay
into
social
security
and
Medicare.
Employees
do
so
through
paycheck
withholdings
and
business
owners
pay
self-employment
taxes
on
their
net
business
profit.
While
this
tax
is
pretty
substantial
—
7.65%
for
employees
and
15.3%
for
self-employed
business
owners,
there
is
a
cap
on
the
income
that
is
subject
to
the
tax.
For
2026,
the
income
cap
is
$184,500
so
any
income
above
that
is
not
subject
to
social
security
taxes
although
it
is
subject
to
Medicare
taxes.
If
jobs
are
replaced
by
AI,
then
the
government
will
lose
these
social
security
tax
and
Medicare
tax
payments.
The
solvency
of
the
social
security
trust
fund
has
been
a
concern
in
the
past
few
decades
and,
based
on
projections,
the
trust
fund
is
on
track
to
be
insolvent
in
2032.
If
insolvency
is
certain,
then
the
government
will
have
to
make
tough
decisions
to
save
the
social
security
trust
fund,
either
by
cutting
benefits,
raising
the
eligibility
age,
or
raising
taxes.
Skeptics
will
note
that
technological
disruption
is
nothing
new
and
despite
the
doomsday
talk,
the
economy
will
adapt.
Most
will
cite
complex
machines
replacing
most
assembly-line
workers
in
the
20th
century.
Or
e-commerce
disrupting
the
Main
Street
brick-and-mortar
stores.
Several
proposals
have
been
made
to
address
this
potential
problem.
One
is
to
impose
additional
taxes
on
AI
companies
and
businesses
that
use
AI
to
compensate
for
the
revenue
lost
due
to
increased
unemployment.
Imposing
this
tax
on
small
businesses
will
be
unpopular
and
the
tax
could
be
passed
on
to
the
customer
if
economic
conditions
allow
it.
Also,
detecting
whether
a
business
is
using
AI
could
be
difficult.
Another
idea
getting
a
lot
of
attention
lately
is
universal
basic
income
(UBI)
where
everyone
gets
a
regular
cash
payment
whether
they
are
working
or
not.
It
could
act
as
a
safety
net
which
will
let
people
cover
basic
living
expenses
even
if
automation
wipes
out
their
job.
But
UBI
could
disincentivize
people
to
work
and
mouth
off
whatever
nonsense
is
in
their
mind
without
fear
of
financial
consequences.
Considering
the
very
large
cost
and
the
potential
negative
incentives,
UBI
is
likely
to
be
used
as
a
last
resort
to
prevent
bigger
societal
problems.
Probably
the
easiest
solution
is
to
change
the
way
how
social
security
is
funded.
In
short,
enact
new
taxes
or
raise
existing
ones.
Or
impose
a
new
tariff.
The
final
and
possibly
the
most
sensible
solution
is
to
wait
and
see.
The
proliferation
of
AI
could
result
in
jobs
that
were
previously
not
available.
Granted,
most
of
the
new
jobs
will
involve
servicing
and
maintaining
the
AI
infrastructure.
But
jobs
involving
other
disciplines
and
skill
sets
could
be
available.
For
example,
philosophers,
ethicists,
and
religious
leaders
could
be
hired
to
help
with
the
AI’s
moral
programming.
AI
is
transforming
work
in
ways
we
haven’t
seen
before,
and
it
has
the
potential
to
strain
social
security
systems
by
potentially
shrinking
the
number
of
contributors.
But
if
we
get
ahead
of
it
—
with
things
like
exploring
UBI,
updating
funding
models,
and
sparking
new
kinds
of
jobs
—
we
can
make
sure
the
upsides
of
AI
benefit
everyone,
not
just
a
few.
The
trick
is
to
embrace
the
tech
while
protecting
the
people
who
get
caught
in
the
transition.
Steven
Chung
is
a
tax
attorney
in
Los
Angeles,
California.
He
helps
people
with
basic
tax
planning
and
resolve
tax
disputes.
He
is
also
sympathetic
to
people
with
large
student
loans.
He
can
be
reached
via
email
at [email protected].
Or
you
can
connect
with
him
on
Twitter
(@stevenchung)
and
connect
with
him
on LinkedIn.