Addressing the robot tax dilemma

bobcat

Well-known Member
Location
Northern Calif
Companies have been benefitting from automation for years by replacing humans with machines. Humans who are on the payroll pay taxes at the end of the year and that's what the government collects. Since machines and robots don't pay taxes, there has been a widening gap between output and government revenue, and that gap will be growing as more robots will be utilized in production of goods.

The proposal is a robot tax to offset the loss of revenue. However, the problems are immense. First of all, what constitutes a robot? (An arm, a rotating disk, an AI driven cart or forklift, or a thousand other configurations). Then, how do you know how many "robots" a company is using at any time, and what if they build their own? Do you tax actuators, circuits, servo-motors, or what? Also, what about all the machinery that has been in operation for decades?

The way around it is to tax output instead of counting what one might think of as a robot. However, some of that output and supervision is being done by humans who are paying taxes on their income, and how does one arrive at exactly how much of the output is human related and how much is robot? If the entire output is taxed, then the government will be getting a pretty good windfall, but the other way of looking at it is that companies have been getting away from taxes on produced output for years by using robotic type labor, and the government has seen shrinking revenue as a result.

The bottom line is if nothing is done, government revenue will continue to shrink, and if output tax is implemented, companies that have been automated for years will suddenly be facing a major kick in the gut.
 
I wouldn’t like to see the government complicate the tax code and would prefer to see the current system scrapped in favor of taxing consumption instead of income.

This could be done through tariffs or a federal income tax collected at the point of sale with food and a few other basic necessities exempt from tax and a heavier tax on higher end luxury items.

Failing that a simple flat tax on income for companies and individuals would be my second choice.

Have a basic standard deduction for everyone to help ease the burden on low income individuals and impose a flat tax on any earnings above that basic subsistence income.
 
what income though bea? if we're not working because we lost our job to a robot, what income are we going to have to pay taxes let alone tariffs on such a thing?
Do you honestly believe that we will all lose our jobs to robots?

IMO we will continue to evolve with technology in the same way we have since the invention of fire and the wheel.

If I’m wrong, I’ll probably be dead by the time to robots rise to power and it will be someone else’s problem.
 
Taxing might become irrelevant

Role of AI and Robotics
Musk envisions a world where millions of robots and AI systems handle most physical and repetitive tasks, boosting productivity and reducing the need for human labor. Tesla’s Optimus humanoid robot is central to this vision, potentially accounting for up to 80% of Tesla’s value in the future. AI and robotics could manage planning, decision-making, and complex problem-solving, making everyday goods and services abundant and accessible.

elon musk says in 10 to 20 years - Bing

Tesla’s Optimus humanoid robot

tesla optimus gen-2 humanoid robot - Search Videos

Doubt I'll be around to see what happens.
 
Do you honestly believe that we will all lose our jobs to robots?

IMO we will continue to evolve with technology in the same way we have since the invention of fire and the wheel.

If I’m wrong, I’ll probably be dead by the time to robots rise to power and it will be someone else’s problem.
Fact Check: Has AI already caused some job displacement? | Econofact

the last line in particular really bothers me as i'm too old to go get a degree in order to have a job....
"One analysis suggests jobs lost to automation may be offset by new jobs in AI, though they will require advanced degrees."
 
Taxing might become irrelevant

Role of AI and Robotics
Musk envisions a world where millions of robots and AI systems handle most physical and repetitive tasks, boosting productivity and reducing the need for human labor. Tesla’s Optimus humanoid robot is central to this vision, potentially accounting for up to 80% of Tesla’s value in the future. AI and robotics could manage planning, decision-making, and complex problem-solving, making everyday goods and services abundant and accessible.

elon musk says in 10 to 20 years - Bing

Tesla’s Optimus humanoid robot

tesla optimus gen-2 humanoid robot - Search Videos

Doubt I'll be around to see what happens.
Well, I could follow all that, but if there is no taxation, then there is no government at all. Granted, I'm not a big fan of the government we have, but major parts of it still seem indispensable. I don't know how this will pan out, but the more automation, then less government funding. The less government funding, the higher the deficit. You can see where this will lead.
 
Fact Check: Has AI already caused some job displacement? | Econofact

the last line in particular really bothers me as i'm too old to go get a degree in order to have a job....
"One analysis suggests jobs lost to automation may be offset by new jobs in AI, though they will require advanced degrees."
Displacement is definitely a possibility for many people but IMO there will always be a need for people.

Maybe consider a move to becoming a caregiver, if robots somehow find a way to replace or reduce your current position.

IMO there will always be options and opportunities.
 
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