I've been mulling over the implications of AI and job automation, and I came up with an idea for a tax that might help balance things out. The concept is to impose a tax on companies based on their profit per employee, specifically targeting those firms that exceed the industry average. This "AI Workforce" tax would apply to the profit over the average amount in an industry, effectively requiring companies profiting significantly more than their peers to contribute more to society, potentially funding retraining programs and unemployment benefits for those displaced by automation.
For example, if the average profit per employee in an industry is $200,000 and a company like "FutureTech" makes $1 million profit per employee, the first $200,000 would be taxed at the normal rate, while the excess would be taxed at a higher rate. This way, those profiting most from AI advancements help to mitigate the job losses caused by it. However, I'm aware there are complexities to work through, such as how to accurately calculate these profits and industry averages. I'm eager to hear your thoughts, critiques, or any alternative ideas on how to prevent wealth concentration in a future where AI is prevalent.
5 Answers
I'm skeptical about automation taxes in general—they seem to overlook how end-users also benefit from automation. Maybe we should be taxing extreme wealth accumulation instead. It's the rich getting richer on the backs of these advancements that we need to tackle.
Not sure this makes sense in America. People are resistant to radical changes—culture just isn't there yet. Maybe something more gradual will come about, hopefully not after another major crisis hits us.
Yeah, and with how things are, I worry that we might have to hit rock bottom before real reform becomes a reality.
This sounds tricky! It almost feels like you're penalizing companies for being efficient while allowing less efficient ones to thrive. There's also the issue of how to define these profits—companies could easily manipulate their operating profits by investing heavily in R&D to lower their taxable income.
Exactly! Companies will find ways to game the system, and then we're back to square one. Plus, if everyone starts moving their operations abroad to dodge this tax, we might lose more jobs.
Honestly, tying this tax to operating profit instead of net profit could be the way to go. If companies are heavily investing in automation, it won't really reflect in their profit margins, right? We don't want to scare them away with high taxes that make them relocate, so balancing that would be crucial.
Right, and I think focusing on the ratio of automation vs human labor could be a smarter angle to take for taxation.
Honestly, I think income tax might disappear if AI replaces jobs in a major way. This tax could have to happen to make up the difference!
True, but I think it'll take a while before we see any substantial changes in tax policy as society adjusts.
Agreed! But figuring out where to start taxing that wealth is a debate for sure.