Taxation debates surrounding artificial intelligence technologies in the US
Five different taxation models brought to the agenda in the US due to the impacts of artificial intelligence on the workforce and infrastructure costs are being evaluated with the objectives of preventing revenue loss and managing technological development.
With the widespread adoption of artificial intelligence technologies in the United States, various legislative proposals regarding the taxation of these systems have started to be debated.
Although artificial intelligence has the potential to increase workforce productivity, its replacement of workers in certain occupational groups can threaten federal revenue sources. The fact that the current tax system relies heavily on individual income and payroll taxes is prompting policymakers to develop new regulations focused on artificial intelligence.
Among the five main taxation proposals on the agenda are taxing the computing power used in training processes, the electricity consumption of data centers, the utilization rates of artificial intelligence, and windfall profits earned. These models serve different purposes such as generating revenue, supporting displaced workers, covering infrastructure investments, and balancing the pace of artificial intelligence activities. Each proposal offers different advantages and disadvantages in terms of timing, scope, economic cost, and administrative feasibility.
Sources
- Brookings · Link