Social Security Payments Face 24 Percent Cut in Less Than a Decade Now, Group Projects
The Social Security and Medicare trust funds, the group said, are just more than seven years from insolvency, with the group citing projections from the two programs' trustees and the impact of the One Big Beautiful Bill Act that was signed into law earlier this month.
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Yahoo
21 minutes ago
- Yahoo
I Asked ChatGPT If Universal Basic Income Could Replace Social Security: Here's What It Said
It's a straightforward thought, and, at first glance, it seems reasonable: replace Social Security with a universal basic income (UBI). It not only could help lower-income retirees live more comfortably in their later years and erase retirement fears, but also could lift lower-income Americans out of poverty for life. Read Next: Check Out: But would it work? GOBankingRates asked ChatGPT if universal basic income could replace Social Security, and here's what it said. First Thoughts From ChatGPT When asked the straightforward question, with no background in the prompt, 'Could universal basic income ever replace Social Security?' ChatGPT offered a simple, well-organized answer. 'That's a big, fascinating question — and the short answer is: not easily, and not anytime soon,' it said. However, it added, 'UBI isn't a miracle cure or a looming catastrophe — it's a tool with real potential, if designed carefully and funded wisely.' It went on to explain why. Explore More: Social Security vs. UBI, According to ChatGPT First, ChatGPT succinctly explained the differences between the programs. 'Social Security is a targeted social insurance program, funded by payroll taxes, that provides retirement, disability and survivor benefits,' it said. On the other hand, UBI is a universal cash transfer, where 'everyone gets the same amount, regardless of income or work history.' Replacing Social Security with UBI would require a paradigm shift. 'Replacing Social Security with UBI would mean shifting from an earned benefit model to a universal entitlement, which is a huge philosophical and political leap,' ChatGPT said. Expert Thoughts Forbes writer Cornelia Walther, Ph.D., an AI researcher, explored how technology could assist in UBI distribution. Yet, she acknowledged in a recent article that UBI acceptance requires 'a foundational human shift.' 'It requires a societal commitment to move beyond paradigms of scarcity and competition,' she wrote. Will People Stop Working With UBI? ChatGPT was then asked this question: 'If there is a universal basic income, will people want to work less?' ChatGPT responded that there have been many studies done with UBI pilots and similar programs, which largely showed that 'most people don't stop working, but some do adjust how they work.' ChatGPT cited several real-world examples from Finland, Canada, California and Alaska, with the takeaway, 'The evidence shows reductions are modest and often socially beneficial.' Expert Thoughts The world's largest study to date, funded partially by Sam Altman, conducted by OpenResearch and reported by the National Bureau of Economic Research, contradicted previous findings. In the study, 1,000 low-income individuals received $1,000 per month for three years. A control group of 2,000 people received $50 per study found that labor market participation decreased by 2 percentage points and participants worked roughly 1.3 to 1.4 fewer hours per week. Partners of participants also reduced their work time similarly. Participants actually earned $1,500 less each year, after accounting for the UBI deposits. Unemployment lasted 1.1 months longer for those receiving the $1,000 monthly check, which seemed to contradict prior research. Nevertheless, the bulk of research, as ChatGPT accurately cited, showed increases in life satisfaction and overall health. The Costs ChatGPT dug into the numbers to address the next challenge: costs and how to pay for UBI. 'Social Security is expensive already, but UBI would dwarf its cost,' it said. Citing figures from the Social Security Administration, it said that Social Security outlays for Supplemental Security Income and Social Security Disability Insurance would total roughly $1.5 trillion in 2025. 'Unless UBI replaced all major welfare programs, the U.S. would need massive new taxes or deficit spending,' ChatGPT said. Expert Thoughts Teddy Ganea, a writer at The Stanford Review, shared that it's entirely possible to implement a UBI of $18,000 per year, at minimum, that could 'end poverty overnight.' The program would phase out gradually for higher-income individuals. Ganea explained that a UBI that provides roughly $9,000 on average in assistance to the 75% of Americans who made less than $75,000 in 2024 would cost less than the $2.5 trillion currently spent on programs like Medicaid and welfare. The cost would even leave enough to 'bolster underfunded programs like Social Security or education,' Ganea wrote. Bottom Line In the ultimate irony, just as ChatGPT shared reasons UBI is impractical, Ganea pointed to the same generative AI as a catalyst for UBI. 'Maybe ChatGPT's greatest achievement won't be in automating coding or customer service,' Ganea wrote. 'Perhaps it will be that, in stoking fears of automation, it paved the way for UBI.' More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm an Economist: Here's When Tariff Price Hikes Will Start Hitting Your Wallet 5 Strategies High-Net-Worth Families Use To Build Generational Wealth How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on I Asked ChatGPT If Universal Basic Income Could Replace Social Security: Here's What It Said
Yahoo
23 minutes ago
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I Asked ChatGPT How the ‘Big Beautiful Bill' Will Affect Social Security Taxes — Here's What It Said
As the 'Big Beautiful Bill' is reportedly tied to proposed sweeping reforms of federal taxation and entitlement programs, many Americans are wondering: What does it mean for Social Security, especially the taxes that fund it? I asked ChatGPT to break down what the Big Beautiful Bill meant for Social Security Taxes — here's what it said. Read Next: For You: What Is the 'Big Beautiful Bill'? Essentially, this bill is aimed at overhauling the tax system, cutting government spending and possibly reforming entitlement programs like Social Security and Medicare. Trending Now: Could It Affect Social Security Taxes? According to ChatGPT, any major tax overhaul could impact how Social Security is funded in several ways below. Raising or Eliminating the Payroll Tax Cap Currently, only wages up to $168,600 (as of 2024) are subject to the 6.2% Social Security tax. The 'Big Beautiful Bill' proposes eliminating this cap, requiring high earners to contribute more, a change that could extend the life of the Social Security trust fund. Changing the Tax Rate The bill could mean an increase in the Social Security tax rate for workers and employers alike. Even a small rate bump would generate billions in revenue but could face stiff opposition. Means-Testing or Changing Benefit Formulas Instead of raising taxes, the bill may reduce future benefits for high-income retirees or change how cost-of-living adjustments (COLAs) are calculated, indirectly affecting how much taxpayers benefit from the system they fund. What Should Workers Expect? The 'Big Beautiful Bill' raises real questions about the future of Social Security funding. If you're a working American, especially under 50, it's smart to stay informed and prepare for potential changes in how much you contribute and what you can expect in return. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 5 Ways Trump Signing the GENIUS Act Could Impact RetireesHow Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on I Asked ChatGPT How the 'Big Beautiful Bill' Will Affect Social Security Taxes — Here's What It Said
Epoch Times
35 minutes ago
- Epoch Times
IRS Announces No Changes to Withholding Tables, Information Return Forms for 2025
There will be no changes to individual information returns or withholding tables for the 2025 tax year while the Internal Revenue Service (IRS) implements the One Big Beautiful Bill Act (OBBB) in a phased manner, the agency said in an Aug. 7 statement. Information returns are documents that businesses must file with the IRS, reporting transactions such as wages paid to employees. IRS's withholding tables describe how much an employer must withhold from an employee's paycheck for taxes, social security, and Medicare.
