SJM Seeks ‘Robot Tax’ for AI-Induced Job Loss

  • July 12, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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SJM Seeks ‘Robot Tax’ for AI-Induced Job Loss

Sub : Eco

Sec: National Income

The Swadeshi Jagran Manch (SJM), affiliated with the Rashtriya Swayamsevak Sangh (RSS), has proposed a ‘robot tax’ to mitigate job losses caused by the adoption of Artificial Intelligence (AI).

  • Robot Tax:
    • Purpose: To cross-subsidize employees who lose jobs due to AI adoption.
    • Usage: The tax proceeds would create a fund to help displaced workers upskill and adapt to new technologies.
    • Rationale: While not opposing AI and cutting-edge technology, acknowledges the short-term job displacement caused by such technologies and seeks economic measures to address the human cost.
  • Incentives for Job Creation:
    • Proposal: Tax incentives for industries generating more employment, assessed based on an employment-output ratio.
    • Objective: To encourage industries to create more jobs, addressing the unemployment concerns highlighted during the recent Lok Sabha election campaign.
  • Subsidies for Small Farmers:
    • Proposal: Subsidies for micro-irrigation projects to boost productivity on small farms.
    • Objective: To combat food inflation by increasing agricultural productivity.
  • Wealth Tax on Vacant Land:
    • Proposal: Imposition of a wealth tax on individuals holding vacant land.
    • Objective: To discourage unnecessary land holding and address housing shortages by making more land available for development.

Context and Justification

  • Economic Measures for AI Impact: Need for economic measures to cope with AI-induced job losses, highlighting the importance of upskilling workers to adapt to technological changes.
  • Job Creation and Unemployment: Aim to stimulate job creation through fiscal incentives and support for labour-intensive industries.
  • Food Inflation: By providing subsidies for micro-irrigation, the proposal seeks to support small farmers and enhance food production, thereby stabilizing food prices.
  • Housing for All: The proposed wealth tax on vacant land is intended to make land available for housing projects, contributing to the government’s goal of housing for all.

Robot Tax: An Overview 

The concept of a robot tax emerged in response to the increasing automation driven by advanced robotics and artificial intelligence (AI). This wave of automation is expected to replace a significant portion of human labor, potentially leading to widespread job displacement and economic disruption.

A robot tax is a proposed tax on companies that use robots and AI to replace human workers. The idea is to generate revenue that can be used to mitigate the negative impacts of automation on the workforce and the broader economy.

Rationale Behind the Robot Tax

  • Income Displacement:
    • Automation can lead to job losses, reducing the income of individuals who are replaced by robots.
    • Consequently, governments may lose income tax revenue from these individuals.
  • Fiscal Necessity:
    • A robot tax can provide governments with the necessary funds to support social programs, such as welfare for the elderly, education, and retraining programs for displaced workers.
economy SJM Seeks ‘Robot Tax’ for AI-Induced Job Loss