Artificial Intelligence and Payroll Tax

I don’t know about your state, but in Ohio, if you drive a hybrid or electronic vehicle, expect to cough up between $100 and $200 extra for license plates, in order to offset the loss of gas tax revenue. Gas tax revenue helps keep our roads in good condition, so it’s only fair that vehicles using less gas, or no gas at all, do their part to maintain the roads.

Even before Henry Ford invented the assembly line, machines have been eliminating jobs. Today we have self service gas stations, self checkout lanes, spreadsheets, and Turbo Tax. All things that have cost people jobs. 

Now comes Artificial Intelligence (AI). AI is replacing workers. Workers, and their employers, pay a total of 12.4% into Social Security, and 2.9% into Medicare. Fewer workers means less income.

Currently, Social Security is funded by the payroll tax, interest earned from Treasury Bonds, and income tax paid on benefits. Should a tax on AI become a 4th source of income based on the jobs it eliminates? I truly don’t know.

Is it time to think outside the box when it comes to funding Social Security and Medicare? I can think of arguments both for and against. What’s your opinion?