Comment by Bipartisan Policy Center

To date, BPC has not taken a position on whether AI should be taxed and does not endorse any particular option in this issue brief. [...] The code treats labor and capital differently: Employers owe payroll taxes on wages, while investments in equipment and software receive more favorable treatment. [...] Potential policy changes in this category could include [...] narrowing the gap between the tax treatment of labor and capital [...] or [...] increasing capital gains tax rates, or curbing preferences for capital income, on the theory that owners of capital—rather than workers—will accrue the lion’s share of the economic gains from AI.