Comment by MIT Stone Center on Inequality and Shaping the Future of Work

The US tax system is biased against workers in favor of machines and algorithms, and has become more so in recent years. Leveling the playing field in the tax code is a necessary step to preserve jobs in the age of AI. [...] Based on their model, the optimal rates would be a 18.22% tax on labor and a 26.65% tax on capital. [...] The current tax system incentivizes companies to invest in software, equipment, and algorithms over hiring workers. As a result, employment levels are artificially low and tasks are automated excessively, even when humans have a comparative advantage in them.