AI models can diagnose cancer, draft contracts and beat the world’s best competitive coders. But can they generate tax revenue? The question is increasingly pressing for governments around the world as anxiety about job automation grows.
At present, personal income tax, which is levied primarily on employees’ wages, accounts for almost one-quarter of the total tax take across OECD countries. Social security contributions, paid by both employers and employees, account for a similar amount. The US, which has no national consumption tax, relies even more heavily on labour taxation.
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