Comment by Daron Acemoglu

In the United States, for example, labor income is taxed significantly more than capital income. If a business pays a worker $100, it will have to hand over as much as $30 in tax and spending obligations. But paying $100 for automation equipment leads to a tax burden of less than $5, a number that has dropped as companies have been allowed to write off more spending on digital infrastructure. For the most part, this tax asymmetry triggers only mediocre productivity gains. In fact, even when automated labor is less productive than human workers, a company may well make money by automating. But removing these distortions in the tax system would create a more level playing field for workers, as well as for the development of pro-worker AI models.