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
Citation
OOI, Vincent and GOH, Glendon.
Taxation of automation and artificial intelligence as a tool of labour policy. (2022). eJournal of Tax Research. 19, (2), 273-303.
Available at: https://ink.library.smu.edu.sg/sol_research/3731
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.