Clemens Fuest: First grow, then maybe tax
The concern that AI will reduce income and social security funds is unfounded. The government can adjust its tax system later. First, the economy must utilize its potential. A guest post.
The spread of Artificial Intelligence (AI) is causing concerns among people, including the fear of job displacement and decreased wages. This could impact not only employees but also social security systems, which rely heavily on income tax and contributions. German Digital Minister Karsten Wildberger (CDU) has proposed a special tax on AI-related sales, suggesting that taxes should be levied where value creation increases in an AI-driven economy.
The tax revenue would be used to fund retraining and further education for employees. However, it is challenging to determine which sales should be taxed, as AI is widely used across various sectors.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
