25 November 2025

The Case for Taxing AI

KEVIN O’NEIL

If AI causes mass unemployment or severe fiscal shocks, elected officials and policymakers will need to act fast to limit the disruption. Fortunately, some of the most reliable and powerful options are also the most familiar.

WASHINGTON, DC – Hardly a day goes by without new headlines about how AI is poised to transform the economy. Even if claims that “AI is the new electricity” prove to be exaggerated, we should still prepare for deep change. One of the most powerful and reliable mechanisms for ensuring that AI benefits society is also one of the most familiar: taxation.

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