Comment by Elena Patel

“AI could raise productivity across a wide range of occupations and tasks. But it could also replace workers who currently perform some of those tasks. […] If AI shifts income from workers to business profits and other capital income, some of that income could face lower effective tax rates. A sustained shift could erode federal revenues amid growing demands for public spending to assist displaced workers. […] Reforming the taxation of capital income, for example, could address a shift from labor income to capital income regardless of which industries are responsible.”