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Comment by Organisation for Economic Co-operation and Development (OECD)

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Intergovernmental organisation that develops evidence-based public policy standards and analysis.
Reducing this gap – by some combination of lowering non-wage labour costs and raising effective tax rates on capital – could weaken the incentives of firms to invest in automating technologies.
Unverified (2026)
Source:
Organisation for Economic Co-operation and Development (OECD), “Securing the Revenue Base for Social Protection,” Financing of Social Protection, 2026, §3.2.4. The OECD explains that automation can reduce labour’s share and recommends lowering non-wage labour costs while raising effective capital-tax rates.
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Governments should tax capital, not labor, as AI makes human work less central to the economy
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