Preserving Fiscal Stability in the Age of Transformative AI

Transformative AI will not only disrupt the labor market, but also the foundations of fiscal stability. As value creation shifts from labor to capital, Anton Korinek and Lee Lockwood explain, traditional tax systems, built on taxing the former, will no longer be fit for purpose. Instead, they set out a framework for an alternative tax system, one that is built for the economy of the future, an age of TAI, rather than the one of the past, an age where human labor sat at the center of economic life.