Tuesday, March 07, 2017

Should Robots Pay Taxes?


guardian |  It may sound strange, but a number of prominent people have been asking this question lately. As fears about the impact of automation grow, calls for a “robot tax” are gaining momentum. Earlier this month, the European parliament considered one for the EU. Benoît Hamon, the French Socialist party presidential candidate who is often described as his country’s Bernie Sanders, has put a robot tax in his platform. Even Bill Gates recently endorsed the idea.

The proposals vary, but they share a common premise. As machines and algorithms get smarter, they’ll replace a widening share of the workforce. A robot tax could raise revenue to retrain those displaced workers, or supply them with a basic income.

The good news is that the robot apocalypse hasn’t arrived just yet. Despite a steady stream of alarming headlines about clever computers gobbling up our jobs, the economic data suggests that automation isn’t happening on a large scale. The bad news is that if it does, it will produce a level of inequality that will make present-day America look like an egalitarian utopia by comparison. 

The real threat posed by robots isn’t that they will become evil and kill us all, which is what keeps Elon Musk up at night – it’s that they will amplify economic disparities to such an extreme that life will become, quite literally, unlivable for the vast majority. A robot tax may or may not be a useful policy tool for averting this scenario. But it’s a good starting point for an important conversation. Mass automation presents a serious political problem – one that demands a serious political solution.