a month ago
- AI will rapidly replace human labor in many fields, leading to massive wealth creation but also potential inequality if policy does not adapt.
- To distribute this wealth fairly, the author proposes taxing capital (companies and land) instead of labor, with a specific plan called the American Equity Fund.
- The American Equity Fund would tax companies 2.5% of market value annually and land 2.5% of value, distributing shares and cash to all adult citizens.
- This system aims to align incentives, reduce poverty, and enable everyone to benefit from capitalism as owners, fostering collective support for growth.
- Implementation challenges include preventing tax avoidance, valuing land accurately, and ensuring the tax does not stifle growth, with gradual adoption to ease transition.