(via Bill Gates: We Should Tax Robots That Take Jobs | Observer)
Are you going to tax my lawnmower, washing machine, or car because they do the work that people used to perform?
STUPID
What’s amazing about this logic is that he closes by saying, “I don’t think the robot companies are going to be outraged that there might be a tax. It’s okay.” Says the guy who has made billions through the luxury of selling software that is so high and demand and with a high barrier of entry from competition. Not to mention the high level of human capital it takes to create his products. His market doesn’t have to worry a lot about automation and manufacturing, especially since they moved away from physical packaging software; but just imagine those businesses that have a low margin of profit but need to heavily invest in cost-cutting labor supplied by automatic production equipment. Those businesses would get hosed because they are not only getting taxed on the mass amount of labor they still need to employ but now also on the equipment itself.
I’d like to think that Bill Gates is just being a sympathetic sycophant to manufacturing laborers here but I believe he is smarter than that. He is blatantly advocating for redistributing wealth by not only taxing labor but now taxing capital goods as well. You would not only be taxed for the purchase of this equipment, you would then also be taxed on its perpetual use as well. You may as well be renting it directly from the government.
This is just one more step towards the government controlling all private property. If they can’t seize it outright, they will tax every aspect of its worth to redistribute as they deem fit.
It’s far from stupid, it’s downright devious.
If robots are going to be so heavily taxed, then wont employers just keep hiring humans?
I suppose it would depend on how much the tax would be. If it is the same progressive income tax as employees have to pay then you would have to weigh the production output compared to manual labor along with the new added tax costs compared to what it would it would cost for actual employee costs like wages, benefits, and payroll taxes. I still believe the employer would go with automation all the same.
I’m not sure how they would calculate a tax based on the theoretical amount of profits they generated from the automated production. What if the business does not reap a profit? Do they just not pay their robot tax? Doubtful. The government always gets its cheese.
Personally, I don’t think that ai and automation will ever be sophisticated enough to truly replace human labor,
But it seems like no one has a viable solution to the problem. The republicans want to institute a base national salary, and the democrats want ever more bureaucracy.
They said AI would never win at Go, either, but we all see how well that’s worked out. It’s all but guaranteed that if civilization doesn’t collapse, AI will replace human labor. The question is when.
But let me throw an alternate, mid-term solution at you that wouldn’t crash the economy: wage subsidies.
If you lower the minimum wage, then make up the difference with direct-to-employee wage subsidies that decline as employer wages increase, you can accomplish multiple things.
- Increase job choice and negotiating power of employees at the bottom, cutting down on exploitation and increasing job satisfaction.
- Multiply the effect of welfare spending by leveraging private spending.
- Recover some of the wealth lost through welfare spending.
- Reduce the number of people on welfare.
- Axe the welfare trap.
- Lower minimum wage may reduce some market distortion.
- Normalize working, including in highly-impoverished communities.
- Keep people busy so they don’t take up constantly protesting as their new vocation.
- Cut crime. (The more jobs, the more dangerous criminal activity seems more like something for a chump to do.)
- Reduce political opposition to automation.
- Fund American jobs preferentially over foreign jobs.
- Make illegal immigration less profitable.
And so on and so forth.
The program can be implemented and tested incrementally. It can be rolled back if it doesn’t work, or expanded if it does. It will be less expensive since it displaces some welfare spending, and it multiplies the effect of money spent with private spending.
The main limitation I would put is that the subsidies are only available for goods and services produced for domestic and not foreign consumption. The bureaucracy required shouldn’t be too bad, otherwise, since this isn’t an approach targetted at specific industries, districts, or means levels.


