As artificial intelligence (AI) and automation potentially replace human labor, the main economic concern will be determining who bears the financial burden. With machines contributing more to economic value, governments must address funding for retraining and unemployment support. Two priorities are expanding the tax base beyond labor and enhancing institutions that help workers adapt to technological changes. Currently, labor is heavily taxed, while technology is lightly taxed, often subsidized to encourage adoption. Proposals like a ‘robot tax’ lack political support, risking reduced public revenues as demand for welfare rises. AI’s impact on jobs could be more extensive than previous technologies, affecting both cognitive and manual tasks. Governments need to prepare for potential job mismatches and consider taxing capital more heavily, especially when profits stem from public resources. This preparation is crucial to avoid leaving taxpayers with costs while investors reap benefits.
QUESTION: How might the shift towards AI and automation influence the types of careers available to future generations?
AI has entered the workforce: tax tech profits, not people
