AI challenges employment-based taxation, this risks decoupling economic growth from employment. Societies must rethink public revenue mechanisms so services etc. are funded. We must redefine the social contract to align prosperity with societal wellbeing, rather than relying on employment taxes
Who Pays for Society When AI Does the Work?
The emergence of agentic AI challenges traditional employment-based taxation systems, risking a decoupling of economic growth from job creation. As automation increases productivity, societies must rethink revenue mechanisms to ensure public institutions are funded. The key lies in redefining the social contract to align prosperity with societal wellbeing, rather than solely relying on employment taxes.
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