Bill Gates Proposes Payroll Taxes on Al and Robots That Replace Workers
Microsoft co-founder Bill Gates has renewed his call for companies to pay taxes when robots or artificial-intelligence systems replace human workers.
Gates suggested that businesses using machines to perform work previously done by people should pay an amount similar to the Federal Insurance Contributions Act taxes that would have been collected from human employees.
FICA is the United States payroll-tax system used mainly to fund Social Security and Medicare. Employers and employees normally contribute to the system through taxes linked to wages.
Speaking about the future of work, Gates argued that the tax system currently treats human labor and automated labor differently. A company hiring a worker pays payroll taxes on that person’s earnings, but a company buying a robot can generally treat the machine as a business asset.
“If you define a unit of labor,” Gates said, companies should pay the same FICA tax whether that work is performed by a human or a robot. His proposal would focus on the work being done rather than only on the identity of the worker.
The idea is intended to address two possible problems. The first is the loss of government revenue if large numbers of workers are replaced by machines. The second is the social and economic impact of automation on people whose jobs disappear.
In a report on Gates’ comments, TechSpot said the proposed system could treat a robot or AI tool as performing a measurable unit of labor. The company using the technology could then pay an equivalent tax based on the value or wages associated with the work.
Gates has previously argued that revenue from a robot tax could help finance worker retraining, education and social-support programmes. TechCrunch reported that he wants such a tax to slow the rush away from human labor while raising funds for people affected by automation.
The Microsoft co-founder has also said that the tax should be targeted carefully. He does not want governments to discourage uses of AI that improve healthcare, education or other public services without eliminating large numbers of jobs.
Gates first gained global attention for the robot-tax idea in 2017. At the time, he argued that if a machine performed the same work as a human employee, it was reasonable to consider taxing the machine or the company using it.
His latest proposal comes as businesses increase their use of robotics and AI in manufacturing, warehouses, customer service, transport, software development and office work.
The debate is likely to grow as AI systems become capable of performing more complex tasks. If automation produces greater economic growth but reduces employment in some sectors, governments may need new ways to fund public services and support displaced workers.
