How the Tax Code Should Account for Automation

Bill Gates, founder of software giant Microsoft, has suggested that robots be taxed, with the revenue generated used to educate and train the U.S. labor force. While Amazon’s Alexa has her own opinion (more on that in a moment), commentators harbor mixed emotions regarding Gates’ suggestion. And for good reason.

If the economy stays on its current trajectory and automation continues unabated, the labor market risks contracting.  Said differently, while every day the so-called Technology Era ushers in new jobs, on balance, more may be lost than gained.

The current U.S Internal Revenue Code (“Tax Code”) exacerbates matters. It imposes … Read more