A robot’s hand

Both Bill Gates and Bill de Blasio have advocated for some sort of tax on robots. With fewer people working and more robots doing their jobs, government funds might dry up, and the reliability of people’s paychecks could be disrupted.

A 2017 report by the McKinsey Global Institute predicted that 15 percent of occupations worldwide will be automated by 2030. However, this prediction did not account for the fact that new jobs would be generated in the United States.

Could an income tax on robots provide workers, especially C-suite level executives, with a safety net against job loss? Let’s find out.

Enhance efficiency and productivity

In the long run, tax parity between computers and humans will boost productivity by removing barriers to hiring the most effective workers. In the current economic climate, where tax policies favor automation, companies have an incentive to replace human labor with machines even though human employees would be superior to robots from a productivity standpoint.

However, income tax neutrality is not a viable solution to the issue of declining tax collection for the government. For that to happen, the whole system of tax burdens on different types of labor and capital will need to be revised.

A sign board and stack of cash

Detrimental effects on state welfare

Roughly half of the tax money collected by the federal government comes from people. That money would be wasted if robots ended up replacing human workers. When automation has an effect on the workforce, it will be difficult to compensate for the resulting loss of human laborers through federally supported education, training, and welfare programs.

Both employers and workers contribute 6.2% of their salaries to social security each year. Mechanical beings are not hired employees. To cut costs, businesses are likely to consider automating even if human workers would do a better job. Loss of income tax money, however, will be devastating to the government, a major stakeholder for any firm.

Leadership positions are irreplaceable

Regardless of how far automation progresses and takes over the jobs of skilled human workers, one thing remains true: robots can never replace top-level positions in a company. All the critical decisions of a company are made by C-suite-level executives with years of experience, training, and expertise that can’t be automated.

If you’re looking to hire such irreplaceable individuals for your organizations, get in touch with Cochran Cochran & Yale today. We help businesses all over New York recruit and retain highly skilled C-level Recruiting Companies In NY, CFOs, and other C-suite executives. Let us help you with your executive job search and help your organization reach new heights.

Contact us today to talk to our expert New York Executive recruitment firm.