What might our tax system look like in the age of AI?
Summary
Marketplace Tech explores how AI could disrupt the tax system, which currently relies heavily on human labor for federal revenue. Correspondent David Brancaccio discusses the potential for companies to save on payroll taxes by replacing workers with AI, creating a fiscal gap for the government. Legal expert Ryan Abbott proposes making the tax system neutral between human and machine labor, suggesting alternatives like consumption taxes or taxing AI usage. The episode weighs the risks of short-term revenue loss against the long-term potential for AI-driven productivity to boost government in…
Topics discussed
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Sponsor: Hard Lessons podcast from Morgan Stanley
Introduction: AI's potential to reshape the economy
The tax system's reliance on human labor
Revenue impact if AI displaces human workers
The tax advantage of AI over human employees
Breakdown of payroll taxes and employer costs
Why the tax system treats labor and tech differently
Potential drag on government revenue and UBI
Sponsor: Gusto payroll software for small business
Proposal to eliminate payroll taxes on humans
Alternative revenue sources: consumption and AI taxes
Optimistic view: AI productivity and national debt
Outro and credits for the segment
Sponsor: Marketplace podcast promotion
Sponsor: Capital One's multi-agent AI concierge
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