I’m not a genius. All I know is tech companies have been making fortunes buying and selling our data from our electronic devices. Its time for these companies pay for our most valuable assets – Our Data. So I asked Grok to come up with a way to cover Social Security by charging these companies in an equitable way.
Every device that collects and sends data, every company that buys and sells data, and every end user who puts that data to work would have to pay a fractional fee for that privilege. If the company suffers a data breach, the fines should be paid directly into the accounts of those who were victimized instead of handed to lawyers.
By flipping the UBI concept upside down, we can make Social Security solvent for all Americans, working or not, as long as they use data collecting devices.
it’s just a framework to start the process. Actual rates would have to negotiated. Even if we cant reach agreement on what’s outlined below – as the percentages may seem extreme by tech companies- I believe it offers a path to even better ideas.
Thanks GROK
Reframing the Problem Using UBI-Style Mechanics to Save Social Security
Instead of trying to make tech companies and device makers directly “pay for” the entire $1.55 trillion Social Security program with micropayments (which, as we saw, is mathematically impossible at reasonable rates), we can use a Universal Basic Income (UBI)-inspired mechanism that is far more powerful, equitable, and feasible.
Core Idea: The “American Data & Device Dividend” (ADDD)
A true citizen-owned data dividend + device dividend that works exactly like Alaska’s oil dividend, but for the national data and digital infrastructure commons.
Every American adult is a co-owner of the nation’s data and digital infrastructure. Companies that extract value from that commons pay a small royalty. The royalty is paid directly into a locked Social Security Trust Fund that funds current benefits (or individual retirement accounts).
This flips the UBI concept on its head: instead of the government taxing and then handing out cash, the government forces resource extractors to pay citizens (via Social Security) for the use of a commonly owned asset — U.S. user data and the public digital space.
How Much Could a Real UBI-Style Data/Device Dividend Actually Raise?
| Source | Realistic Rate (politically viable) | 2025–2030 Annual Revenue to Trust Fund |
|---|---|---|
| Digital advertising (Google, Meta, TikTok, etc.) | 18–22% royalty on U.S. ad revenue | $65–80 billion |
| Data brokers & credit bureaus | 25–30% on U.S. revenue | $40–50 billion |
| Cloud & AI training on U.S. data | 3–5% on attributable U.S. revenue | $50–80 billion |
| App Store / Play Store commissions | Extra 5% “data royalty” | $15–20 billion |
| Device royalty (phones, PCs, smart TVs, cars) | $40–60 per device sold in U.S. | $30–45 billion |
| Streaming & subscription services using behavioral data | 4–6% royalty | $25–35 billion |
| Total realistic dividend revenue | $225–350 billion per year |
This is 3–5× more than the weak proposals in my first answer because we are now treating data as a national resource and charging proper royalties (like Norway does with oil), not tiny “micropayments.”
Option 1: Pure Social Security Fix (Most Practical)
All $250–350 billion goes straight into the Social Security Trust Fund every year.
Result:
- Immediately eliminates ~70–90% of the long-term Social Security shortfall.
- Allows payroll tax to be cut from 12.4% → 4–6% within a decade.
- Workers keep hundreds of dollars per month; retirees get full benefits.
- Tech companies pay their fair share for the data commons they mine.
Option 2: Hybrid UBI + Social Security (Bolder, More Transformative)
- Pay every American adult a monthly “Data Dividend” of $100–150 (like Alaska Permanent Fund). → Costs ~$300–450 billion/year for adults 18+.
- Fund it entirely from the royalty pool above.
- Simultaneously means-test or reduce traditional Social Security benefits for high earners (top 20–30%), because they are already getting the dividend.
- Net effect:
- Low- and middle-income retirees effectively get current benefits or more.
- Working-age people get $1,200–1,800/year pre-retirement nest egg.
- Social Security becomes partially pre-funded and sustainable forever.
Why This Is the Only Equitable Tech-Funded Path That Actually Works
| Traditional payroll tax | Data/Device Dividend (UBI style) |
|---|---|
| Falls only on workers & employers | Falls on companies profiting from everyone’s data |
| Regressive cap at ~$168k income | No income cap — billionaires’ data is just as valuable |
| Shrinking base as gig/automation rises | Growing base as data economy explodes |
| Zero buy-in from Big Tech | Big Tech finally pays for the resource they extract |
Legislative Blueprint (Could Pass with Bipartisan Support)
Call it the “American Data Dividend Act of 2026”
- Modeled legally on the Alaska Permanent Fund (conservatives love states’ rights + dividends).
- Modeled economically on Norway/Saudi oil funds (progressives love wealth funds).
- Framed as “Making Big Tech Pay Their Fair Share for Social Security Tax” (populist messaging).
- Revenue locked: 100% must go to Social Security solvency or citizen dividends — no general fund raiding.
Bottom Line
You cannot fund all of Social Security with tiny micropayments. But you can fund 70–100% of the shortfall — or replace much of it with a UBI-style citizen dividend — by treating U.S. user data and digital infrastructure as a commonly owned asset and charging real (not symbolic) royalties.
That is the closest thing to a painless, equitable, politically viable “tech pays for Social Security” plan that actually adds up.
I then asked Grok to add the settlements from data breaches.
Updated American Data & Device Dividend (ADDD) with Data Breach Penalties
To incorporate your suggestion, I’ve enhanced the ADDD framework by adding a new revenue stream: mandatory fines and settlements for data breaches. Under this proposal, all regulatory fines (e.g., from FTC, FCC, state attorneys general, or HIPAA/OCR) and class-action settlements related to data breaches would be redirected entirely to the ADDD Trust Fund. This treats breaches as violations against the national data commons, with penalties funding citizen dividends or Social Security solvency.
Key Additions and Assumptions
- Rationale for Inclusion: Data breaches erode public trust in the digital economy and exploit the same user data that fuels tech profits. Redirecting fines/settlements aligns with UBI principles (e.g., Yang’s emphasis on taxing externalities like automation/tech harms) and creates a deterrent while generating revenue.
- Estimated Annual Revenue from Fines/Settlements: Based on 2025 data:
- Regulatory fines (e.g., HIPAA/OCR totals ~$9 million; FTC and state fines add hundreds of millions across cases like TikTok’s effective US-impacted penalties).
- Class-action settlements: Major 2025 examples include Yale New Haven Health ($18 million), Medusind ($5 million), and Capital One’s lingering settlement ($190 million). Total US data breach settlements and fines for 2025 are estimated at $2–5 billion, drawing from reports of ~12,000 global breaches (with US share ~25–30%) and average costs/fines per incident.
- Proposed Enhancement: To make this meaningful, the ADDD Act would standardize and increase fines (e.g., minimum $1 million per million records breached, scaled by severity), potentially boosting yield to $10–15 billion annually. This is conservative; historical peaks (e.g., Equifax $575 million) show potential for higher with enforcement.
- Equitability: Fines would scale with company size and breach impact (e.g., Big Tech pays more). Victims could still receive direct compensation via a separate claims process, but bulk funds go to the national dividend—mirroring how oil spill fines fund environmental trusts.
Updated Revenue Projections (2025–2030 Baseline)
| Source | Realistic Rate (politically viable) | 2025–2030 Annual Revenue to Trust Fund |
|---|---|---|
| Digital advertising (Google, Meta, TikTok, etc.) | 18–22% royalty on U.S. ad revenue | $65–80 billion |
| Data brokers & credit bureaus | 25–30% on U.S. revenue | $40–50 billion |
| Cloud & AI training on U.S. data | 3–5% on attributable U.S. revenue | $50–80 billion |
| App Store / Play Store commissions | Extra 5% “data royalty” | $15–20 billion |
| Device royalty (phones, PCs, smart TVs, cars) | $40–60 per device sold in U.S. | $30–45 billion |
| Streaming & subscription services using behavioral data | 4–6% royalty | $25–35 billion |
| Data Breach Fines & Settlements (new) | 100% redirection + enhanced penalties | $10–15 billion |
| Total updated dividend revenue | $235–365 billion per year |
This adds ~$10–15 billion annually, a 4–5% uplift from the prior $225–350 billion estimate. While modest relative to the total, it grows over time as breaches (unfortunately) persist and enforcement ramps up.
Revised Option 1: Pure Social Security Fix
- All $235–365 billion flows to the Social Security Trust Fund.
- Result: Covers 75–95% of the long-term shortfall, enabling a payroll tax cut from 12.4% to 3–5%. The breach penalties provide a “bonus” buffer for benefit expansions or inflation adjustments.
Revised Option 2: Hybrid UBI + Social Security
- Distribute $100–150/month to adults (~$300–450 billion cost, now closer to self-funding with the extra revenue).
- Means-test high-earner Social Security benefits; use breach fines to fund victim restitution add-ons (e.g., free credit monitoring for affected individuals).
- Net: Working-age Americans get $1,200–1,800/year; retirees maintain or gain; tech accountability increases via penalties.
Why This Strengthens the Plan
- Mathematical Impact: The addition doesn’t drastically change totals (breach revenues are variable and smaller than ad/cloud royalties), but it makes the system more robust and tied to real-world harms.
- Political Appeal: Frames Big Tech as paying for their mistakes—bipartisan win (conservatives like penalties; progressives like redistribution).
- Feasibility: Builds on existing laws (e.g., FTC authority under Section 5); revenue redirection modeled after environmental superfunds.
This updated ADDD remains the most equitable “tech-funded” path to Social Security sustainability or UBI integration. If you’d like to adjust fine levels, add more sources, or simulate for higher breach scenarios, provide details!
Any Thoughts, DC?