Proposed Social Security Reforms Target Investment Income and AI Productivity to Prevent 2032 Fund Depletion

Social Security benefits are projected to run out in 2032, according to the Social Security Administration. Current funding relies on payroll taxes of 6.2% for employees and employers. High-net-worth Americans derive much of their income from stocks, which are not subject to payroll taxes. A tax on high investment income above a certain threshold would redirect funds to Social Security. AI automation leads to productivity gains and cost reductions for companies. A universal dividend paid via royalties from AI companies would redirect funds to Social Security. All retirees currently receive annual cost-of-living adjustments regardless of income level. Progressive cost-of-living adjustments would reduce the COLA for higher-income recipients. A targeted consumption tax on discretionary spending would increase funding for Social Security.