Business · Economy · 1 hr ago
Bill Gates renews call for taxes on AI and robot workers
Bill Gates has renewed his call for a tax on work done by robots and artificial intelligence.
He proposes that companies pay the same payroll tax for a unit of work whether a person or a machine does it.
Gates says this could discourage companies from replacing employees and help governments maintain tax revenue if jobs disappear.
The idea has been debated since at least 2017, as AI becomes more common in workplaces.
Canadian experts say it could be difficult to measure which human jobs machines replace and how much work to tax.
They also argue that taxing the owners of the technology may be a more direct way to address inequality, while a robot tax could conflict with existing incentives for business investment in Canada.
No specific policy decision or next step is described.
Bill Gates has renewed his call for taxing AI and robot workers as a way to deter companies from replacing human employees.
He said automated workers should contribute to payroll taxes at the same rate as human workers.
Gates argued that such taxes could preserve government revenue if human jobs are replaced.
Some economists and tax experts say the proposal could be difficult to implement and may distract from taxing technology owners.
The debate has returned to attention as warnings about AI-related job losses grow.
- Who
- Bill Gates proposed the tax. Economists Jim Stanford and Jennifer Robson raised concerns.
- What
- Gates called for AI and robot workers to pay payroll taxes comparable to those paid for human workers.
- When
- Gates first called for a robot tax in 2017 and revisited the idea in a recent interview.
- Where
- The interview was with American political commentator and journalist Ezra Klein; its location is not stated.
- Why
- Gates said the tax could deter companies from replacing workers and preserve government revenue when jobs are displaced.
Supporters of a robot tax
Skeptics of a robot tax
Purpose
Supporters of a robot tax
A tax could discourage companies from replacing human employees and help maintain government revenue.
Skeptics of a robot tax
Taxing the owners of technology would be a more direct response to inequality linked to automation.
Implementation
Supporters of a robot tax
AI or robot workers should contribute to payroll taxes at the same rate as human workers.
Skeptics of a robot tax
It would be difficult to determine which human labour was replaced and what income should be taxed.
Policy effects
Supporters of a robot tax
Tax revenue could be redistributed among workers.
Skeptics of a robot tax
A robot tax could distract from other measures, such as a wealth tax, and may conflict with existing investment incentives.
You define a unit of labour and say, independent of whether that’s delivered by a human or robot, you are paying the same FICA tax that a human worker would pay
If you want to collect taxes because you are worried about inequality arising from technology, then you obviously tax the people who own the technology
If AI displaces labour and further concentrates returns to capital, then yes, taxation is one tool for redistribution to offset that shift
What is the income stream that we would be taxing? How do you assign a dollar value?
Gates first called for a robot tax.
Gates revisited the proposal in an interview with Ezra Klein.
- Proposed tax
- AI and robot workers would pay payroll taxes at the rate paid by human workers
- First call
- 2017
- Interview
- Ezra Klein
- Tax-policy expert
- Jennifer Robson, Carleton University
- Economist
- Jim Stanford, Centre for Future Work
Sources
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