Bill Gates Wants To 'Tax The Robots' That Take Your Job – And Some Say It Could Fund Universal Basic Income To Replace Lost Wages

Back in 2017 – long before ChatGPT became a household name and artificial intelligence started raising existential questions – Bill Gates floated a bold idea: tax the robots. The Microsoft cofounder suggested that companies deploying automation to replace human workers should pay taxes on those machines, just as they do on human wages. At the time, it was a strikingly simple yet provocative proposal aimed at tackling an issue most people didn't even realize was coming.

Fast-forward to today when fears about AI replacing jobs are no longer sci-fi speculation but a looming reality. Gates' idea now seems eerily prophetic. Automation has made massive inroads into industries ranging from manufacturing to logistics, and the resulting economic implications have sparked a global debate. Suddenly, the idea of taxing robots has gone from a hypothetical thought experiment to a serious policy consideration.

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The Case for a Robot Tax

In a 2017 interview with Quartz, Gates explained his rationale in clear terms: If a human worker earning $50,000 annually is taxed, why wouldn't a robot performing the same job face a similar levy? He proposed using the revenue generated from such taxes to fund social programs, retrain displaced workers and create new jobs in fields requiring human empathy like elder care and education.

"You cross the threshold of job replacement all at once," Gates explained, referencing industries like warehouse work and driving already on the brink of automation. His argument wasn't about punishing innovation but rather managing its societal impacts. By slowing automation "just a bit," Gates believed communities and governments could better adapt to the economic disruption. He placed the responsibility squarely on governments, stating that businesses alone couldn't address rising inequities.

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Universal Basic Income: A Logical Next Step?

Although Gates didn't explicitly tie his robot tax proposal to universal basic income (UBI), the idea has often been linked to his vision. During a 2017 Reddit AMA, Gates acknowledged that the U.S. wasn't yet "rich enough" to implement UBI but suggested it might be possible. His recent commentary on UBI has evolved. In his 2024 Netflix series What's Next? The Future With Bill Gates, he notes that addressing poverty through measures like UBI could save money in the long run. He pointed to statistics showing that child poverty alone costs over $1 trillion annually in the U.S.

Others have built on the idea of linking a robot tax to UBI. French presidential candidate Benoit Hamon proposed partially funding a UBI through such a tax. At the same time, prominent tech leaders like Elon Musk and Richard Branson have suggested that automation will make UBI inevitable. Musk, in particular, has warned that large-scale job losses due to AI and robotics will require governments to provide a safety net for displaced workers.

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Stanford lecturer Kartik Gada has taken a more optimistic approach, arguing that technological deflation – where goods and services become cheaper as technology advances – could fund UBI without increasing individual taxes. His ATOM publication even suggests that deflationary pressures created by automation might naturally offset the costs of a universal income program.

The Criticism: Innovation vs. Regulation

Not everyone is on board with taxing robots. Critics argue that such a tax could stifle innovation by discouraging companies from investing in automation. They contend that slowing technological progress would put countries at a competitive disadvantage globally. Others propose alternative solutions like universal basic dividends funded by the profits of tech companies as a less intrusive way to redistribute wealth.

Despite these critiques, automation is accelerating. Industrial robot orders have reached record highs, and AI is creeping into more job sectors than ever before. The COVID-19 pandemic supercharged the trend, with companies like Amazon doubling down on robotics to keep warehouses operational during labor shortages.

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A Debate That's Far From Over

As automation continues to reshape industries, Gates' robot tax remains one of the most intriguing and polarizing ideas. While some see it as a way to balance innovation with societal needs, others fear it could hinder progress. What's clear is that the conversation Gates started in 2017 is more relevant than ever.

The question isn't just whether robots should be taxed but how society can navigate a future where machines increasingly take on roles once held by humans. Whether through robot taxes, UBI or some yet-to-be-discovered solution, one thing is certain: how we think about work, taxation and social safety nets will have to change.

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