Can we tax the robots? (www.techradar.com)

The rapid rise of AI tools and large language models (LLMs) is prompting a reevaluation of traditional taxation systems as automation challenges the social contract between labor and government revenue. OpenAI’s CEO, Sam Altman, emphasizes the need for a "new social contract," suggesting that as AI transforms income generation, tax structures must adapt to avoid significant economic and governmental disruption. The RAND Corporation warns that without a reformed tax system reflecting automation's impact, labor income may decline and government revenues could shrink, creating financial strain. Proposed solutions include taxing corporate profits generated by AI, rather than trying to tax the machines themselves, which face legal limitations as they cannot own property or assume liability. Alternatives such as an "automation tax" or a guaranteed annual income funded by companies benefitting from AI could redistribute wealth more equitably. The conversation highlights the urgency of reimagining public finance to account for automation’s consequences, advocating for proactive policymaking to ensure economic stability and prevent widening inequality in a world increasingly dominated by AI advancements.