January 8, 2018

TAX WHAT YOU DON'T WANT:

If You Find Yourself Automated Out Of A Job, Blame The New Tax Plan (BROOKS RAINWATER, 1/08/18, Fast Company)

Tax policy will now make it easier and cheaper to invest in software, automation, and robots, rather than all of us. Before, capital investments had to be depreciated over a series of years, but now businesses can write them off right away. Imagine a warehouse owner in Southern California is faced with increased demand and must hire to meet those needs. They now face a choice to immediately buy a tax-advantaged robot or instead hire a human to make sure they can ship out more kitchen sinks and ramen noodles. With the tax plan in place, it shifts the balance and makes it a much easier choice to invest in a new robot that can slide goods across the floor. Should a business that does not want to pay a competitive wage to attract employees be incentivized to do so by the government through tax policy?

Obviously.

Posted by at January 8, 2018 5:34 PM

  

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