Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2022

Abstract

Rapid developments in automation technology pose a risk of mass displacement of human labour, resulting in the need to support and retrain displaced workers (a negative externality). We propose an “automation tax” that would slow the adoption of automation technology in appropriate circumstances, giving workers and social support systems time to adapt. This could be easily implemented through changes to the existing schedular system of depreciation/ capital allowances, reducing the uncertainty of its application and implementation costs. Such a system would be flexible enough to keep up with rapid technological developments. Two main dimensions may be adjusted to produce intended distortionary effects: 1) accelerated depreciation, and 2) bonus depreciation. While the benefits of efficiency gains mean that the automation tax is unlikely to have widespread application, it does provide a useful tool for specific situations where the rate of automation needs to be slowed due to its resultant social costs.

Keywords

Tax law, Taxation, Automation taxation, Robot tax, Regulation, Tax and regulation, Labour law

Discipline

Science and Technology Law

Research Areas

Innovation, Technology and the Law; Corporate, Finance and Securities Law

Publication

eJournal of Tax Research

Volume

19

Issue

2

First Page

273

Last Page

303

ISSN

1448-2398

Publisher

University of New South Wales

Copyright Owner and License

Authors

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