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Let's say, a company buys some robots to replace half their workforce, replacing those that pay taxes, contribute to the social security fund, as well as the state treasuries, and the owners reap more profits.
Shouldn't there be some form of taxation for the robots? A one-time tax, or a monthly tax?
Actually, there's a good chance that in your example, the money saved would be taxed a higher percentage either because the owner was in a higher effective tax bracket than the employee or because the company pays taxes both on it's income as well as the owners paying taxes again on capital gains, but that depends on the legal structure of the company.
The difference is that as a theoretical owner, I can either pay 100% of your salary to a combination of you and the government, or I can pay 40% to the government and keep the rest for myself. Taxes aren't really the issue here since the government would likely receive more, the only problem is that you as the employee have been cut out of the picture and the government and I just divided up your share.
The real problem becomes when tax loopholes allow the owner and/or the corporation to have a lower effective tax rate than the employee. At that point, the government would receive less, so it might consider a tax (in theory).
So let's say that the government did want to impose a tax like this. The problem becomes what do you define as a robot? Sure, an automated assembly line becomes pretty obvious to point a finger at, but what about simple computers with software? Turbo tax has probably cost a significant number of personal tax accountants to lose their job. Email in general is probably responsible for the majority of postal worker job cuts. Even cell phones were responsible for putting switch board operators out of a job.
When you consider that the tax would effectively be a tax on innovation, progress, and efficiency, I think I'd have to argue the other way and say they should be subsidizing automation with tax benefit. But to do so would require that as costs go down, those savings are passed along to consumers, which in our society isn't the case and instead profit margins just increase.
It's an interesting proposal, but I personally don't think it'll solve the issue.
You raise some interesting issues on the result of automation, or the Internet, responsible for job losses, so this could open up a can of worms for sure, all measured in jobs lost, and who, it, was responsible.
I just happened to be reading an article on Robots this week, and I gained some comfort in thinking the robots, like cars, have to be serviced, so that must create some employment, and then I read that there are robots trained to repair other robots! But, again, they must need employees to service the robots that repair other robots!
Just like electric cars, not paying gas taxes to help maintain our roads!
Who knows! Some day, it all my lead to another Luddite movement, during the 1800's in England, employees destroying labor-saving machines.
Let's say, a company buys some robots to replace half their workforce, replacing those that pay taxes, contribute to the social security fund, as well as the state treasuries, and the owners reap more profits.
Shouldn't there be some form of taxation for the robots? A one-time tax, or a monthly tax?
How do you plan to punish the robot if it fails to file and pay its taxes correctly and on time?
But in all seriousness, there already is a one-time tax on the robot: sales tax.
A much better option for all involved would be to reduce the cost of domestic labor, that way American workers (instead of robots) perform labor, earn incomes, and pay taxes.
How do you plan to punish the robot if it fails to file and pay its taxes correctly and on time?
But in all seriousness, there already is a one-time tax on the robot: sales tax.
A much better option for all involved would be to reduce the cost of domestic labor, that way American workers (instead of robots) perform labor, earn incomes, and pay taxes.
Reducing the cost of labor is not going to halt the ever-expanding production/usage of robots! Particularly when the price of robots gets cheaper and cheaper.
To some companies, even the existing minimum wage is an incentive to bring in robots, say nothing of the cry for the $15 minimum wage.
Before this gets too out of hand, more jobs lost, perhaps a monthly usage fee is in order, put into a fund to help with the unemployed, if nothing else.
Reducing the cost of labor is not going to halt the ever-expanding production/usage of robots! Particularly when the price of robots gets cheaper and cheaper.
The ever-increasing cost of domestic labor is what has spurred the trend toward automation, offshoring, and outsourcing.
Quote:
Originally Posted by tijlover
To some companies, even the existing minimum wage is an incentive to bring in robots, say nothing of the cry for the $15 minimum wage.
Before this gets too out of hand, more jobs lost, perhaps a monthly usage fee is in order, put into a fund to help with the unemployed, if nothing else.
Any excuse to stick it to those evil corporations and their rich, greedy CEOs, right?
They will of course tax the corporations for not hiring tax-payers
The robots operate in silence, they do not have fear
I advise anybody reading to look into developing not-conceived-of-yet drones capable of lifting and dropping cargo
With such technology you will be able to make any uninhabitable area your domain and playground (think vertical territories occupying space that is flatter than the width of a hair) , where you'll be able to do your work in peace away from scrutiny and to avoid confiscation/taxation
Individuals and companies already pay taxes on so many things such as property, cars etc. Why not robots?
The government can tax companies for the usage of robots on the basis of the income they generate for the company. Just because they are non-human doesn’t mean they should be exempt from paying taxes. That would be an automation tax.
Individuals and companies already pay taxes on so many things such as property, cars etc. Why not robots? Just because they are non-human doesn’t mean they should be exempt from paying taxes. That would be an automation tax.
Corporations (except GE) already pay income tax - in fact, we have one of the world's highest corporate tax rates.
Sales tax is paid on the robots when they are purchased.
Also taxed are:
the electricity they consume;
the parts and consumables used to keep them in operation;
the incomes of the workers who design, build, ship, install, operate, and maintain the robots; and
the products assembled by the robots.
There is no need to levy any additional tax, as there is a substantial amount of tax revenue already derived from robots.
Let's say, a company buys some robots to replace half their workforce, replacing those that pay taxes, contribute to the social security fund, as well as the state treasuries, and the owners reap more profits.
Shouldn't there be some form of taxation for the robots? A one-time tax, or a monthly tax?
How are you going to count the robots?
What if the robot is one whole assembly line?
it's much easier to just tax companies profits (conservatives are 100% against it)
The more money companies make, the more they should pay in tax.
And no, it's not a punishment, it's paying their fair share for benefitting from doing business in our country.
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