A new-knowledge approach to AI and tax policy
Source: Australian Tax Forum Journal Article
Published Date: 1 Dec 2021
Artificial intelligence (AI) promises to change nearly every aspect of our lives but it is as yet unclear how the one policy instrument that already touches almost every aspect of our lives - taxation - is going to adapt to the nature, evolution and future societal impact of AI. One option is to tax AI, the calls for which originate from a concern that AI will cause long-term unemployment. Not only might this concern be misplaced but taxing AI also fails to take account of AI's unique nature: it is the first technological system that is capable of producing knowledge. Accordingly, by adopting the new-knowledge approach to tax policy analysis, which concerns the promotion of knowledge production, this article argues that to treat AI as a taxpayer would not help promote social welfare. Rather, it argues that it would be better to treat AI systems as ordinary depreciable capital assets and to introduce a tax offset for investments in AI.
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Details
- Published By: Mark Bowler-Smith
- Published On:1 Dec 2021
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