22 days ago
- AI development may impose costs such as environmental burdens, labor displacement, and systemic risks.
- Taxation can address AI harms by correcting externalities, redistributing costs and gains, and funding regulation.
- Potential tax instruments include corporate income taxes, consumption taxes on AI services, and excise taxes on specific AI activities.
- Tax policy design must consider feasibility, measurement, incidence, leakage, and innovation costs, tailored to specific AI externalities.