"If artificial intelligence eliminates millions of jobs, it might make sense to scrap income taxes for the vast majority of Americans and target capital instead, Vinod Khosla says. "AI will transform economies and need a rethink of capitalism & equity," the billionaire venture capitalist wrote in an X post on Monday. "Labor portion of economy (vs capital) will decline sharply. Should we eliminate preferential treatment of capital gains tax and equalize to ordinary income?""
"Khosla - who cofounded Sun Microsystems and made the first VC investment in OpenAI - was making the point that AI replacing labor on a grand scale might warrant greater taxes on assets such as stocks and real estate. The veteran financier, who founded Khosla Ventures after leaving Kleiner Perkins, attached a video highlighting some of the jobs that could be taken by AI, from accountants and therapists to truck drivers and chip designers."
Artificial intelligence could eliminate millions of jobs across many occupations, reducing the labor share of the economy relative to capital. In that scenario, taxing capital — including equalizing capital gains rates to ordinary income and removing preferential capital tax treatment — could raise substantial revenue. Higher capital taxation could allow elimination of income taxes for a large portion of households, potentially removing roughly 125 million to 150 million taxpayers from the rolls while remaining revenue neutral. The proposal targets assets such as stocks and real estate and criticizes popular tax breaks as special-interest benefits rather than true capitalism.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]