Gates renews call for taxes on machines that replace workers

Microsoft co-founder Bill Gates is again urging governments to tax robots and other AI-powered machines that replace human workers. He argues that current tax rules can favor automation because employers pay payroll taxes on workers but can generally deduct robots as business expenses.

Gates says such a tax could slow job displacement and raise money for retraining and stronger safety-net programs. He says it should target labor-replacing uses without discouraging applications that reduce costs in areas such as medicine and education.

The proposal has drawn criticism from economists who warn that taxing robots could reduce investment, economic growth and wage gains. Pew Research found that 71% of U.S. adults expect AI to lead to fewer jobs over the next two decades, up from 64% in 2024.

Read the full story at fortune.com.