Tax policy needs to adapt to ensure future government funding remains durable, says a new report from OpenAI.
Its new report ‘Industrial Policy for the Intelligence Age’ suggests there needs to be new taxes on automated labour and wage-linked incentives to encourage firms to retain, retrain and invest in workers. It pointed out that similar policies already exist for R&D.
The report stressed as AI reshapes work and production, the composition of economic activity will shift – expanding corporate profits and capital gains while reducing reliance on labour income and payroll taxes.
This could erode the tax base that funds core programmes like social security, and health care. Ultimately, putting them at risk.
Workers also need to be given a voice, says the report authors. This will help the transition to AI better and safer. They will also be critical voices in understanding how AI can be used in the workplace.
