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South Korea Moves Towards The World's First 'Robot Tax'

An anonymous reader quotes ZDNet:
It’s being called the world’s first robot tax. If it goes into effect, South Korea will be the first country to change its tax laws in recognition of the coming burden of mass robotic automation on low and middle-skill workers. The change proposed by the Moon Jae-in administration isn’t a direct tax on robots. Rather, policymakers have proposed limiting tax incentives on investments in automation… Under existing law, South Korean companies that buy automation equipment, such as warehouse and factory robots, can deduct between three and seven percent of their investment. The current proposal, which seems likely to advance, is to reduce the deduction rate by up to two percentage points.
The move is evidently not an attempt to staunch companies from adopting automation technology. Rather, it is a kind of formal acknowledgment that unemployment is coming on a big enough scale to eat into South Korea’s tax revenue. Policymakers are hoping that reducing the deduction incentives by a couple percentage points will offset the lost income tax and help keep the country’s social services and welfare coffers filled.
The Korea Times, which broke the story, reminds readers that former U.S. treasury secretary Lawrence Summers has called robot taxes “profoundly misguided… A sufficiently high tax on robots would prevent them from being produced.”

Read more of this story at Slashdot.

Source: Slashdot

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