Optimal taxation of robots

"I study the optimal taxation of robots and labor income. In the model, robots substitute for routine labor and complement non-routine labor. I show that while it is optimal to distort robot adoption, robots may be either taxed or subsidized. The robot tax exploits general-equilibrium effects t...

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Bibliographic Details
Main Author: Thuemmel, Uwe
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Munich 2018
CESifo
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19136504124919547869-optimal-taxation-of-robots.htm
Description
Summary:"I study the optimal taxation of robots and labor income. In the model, robots substitute for routine labor and complement non-routine labor. I show that while it is optimal to distort robot adoption, robots may be either taxed or subsidized. The robot tax exploits general-equilibrium effects to compress the wage distribution. Wage compression reduces income-tax distortions of labor supply, thereby raising welfare. In the calibrated model, the optimal robot tax for the US is positive and generates small welfare gains. As the price of robots falls, inequality rises but the robot tax and its welfare impact become negligible."
Physical Description:67 p.
Digital