Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306759 
Year of Publication: 
2024
Series/Report no.: 
IFN Working Paper No. 1501
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
This chapter examines the implications of Artificial Intelligence (AI) and automation for the taxation of labor and capital in advanced economies. It synthesizes empirical evidence on worker displacement, productivity, and income inequality, as well as theoretical frameworks for optimal taxation. Implications for tax policy are discussed, focusing on the level of capital taxes and the progressivity of labor taxes. While there may be a need to adjust the level of capital taxes and the structure of labor income taxation, there are potential drawbacks of overly progressive taxation and universal basic income schemes that could undermine work incentives, economic growth, and long-term household welfare.
Subjects: 
AI
Automation
Inequality
Labor Share
Optimal Taxation
Tax Progressivity
JEL: 
H20
H21
Document Type: 
Working Paper

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