AI, Automation and Taxation

Spencer Bastani and Waldenström, Daniel

No 19045, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This chapter examines the implications of Artificial Intelligence (AI) and automation for the taxation of labor and capital in advanced economies. It synthesizes empirical evidence on worker displacement, productivity, and income inequality, as well as theoretical frameworks for optimal taxation. Implications for tax policy are discussed, focusing on the level of capital taxes and the progressivity of labor taxes. While there may be a need to adjust the level of capital taxes and the structure of labor income taxation, there are potential drawbacks of overly progressive taxation and universal basic income schemes that could undermine work incentives, economic growth, and long-term household welfare.

Keywords: Automation (search for similar items in EconPapers)
JEL-codes: D31 H21 O30 (search for similar items in EconPapers)
Date: 2024-05
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Chapter: AI, automation and taxation (2024)
Working Paper: AI, Automation and Taxation (2024)
Working Paper: AI, Automation, and Taxation (2024)
Working Paper: AI, Automation and Taxation (2024)
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