Peter Jones: Save Social Security by taxing machines?

Peter Jones: Save Social Security by taxing machines?

Whenever the prospect of Social Security insolvency is discussed, the only reforms suggested involve either additional taxes on workers or reductions in benefits. Neither of these is palatable, so I suggest, herewith, an alternative.

Suppose the Brown Corporation decides to replace one worker with a machine. If the worker to be replaced earns $30,000 per year, the Social Security system will lose $3,750 a year — half from the worker, half from the company. Why not replace that lost income with a tax on the machine?

The company would still save money, even after paying the tax. Otherwise, it would not […]

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