What if I don't build the actual factory. What if I just have the idea about how to improve the process and publish a paper about it. Then someone else actually builds the factory?
Then who pays the tax?
What if I invent a whole new product category that obsoletes a whole industry? Not a lot of people manufacturing typewriters anymore.
What if I invent a cheaper way to ship goods from China making it easier to shift manufacturing there? Who pays the tax then?
What if I'm an employee at the factory and I figure out a better way of doing things so that I can take on additional responsibility so when Bob (the guy next to me) retires we don't have to hire a replacement? Then do I pay?
And how long does this tax last? Forever? Are people still paying taxes for all the farmers we don't have to have anymore?
How confident are you that you can really write tax rules that make sense for the infinite number of scenarios via which productivity is enhanced in a modern economy?
I said myself that implementation wouldn't be practical, so this is more of a thought experiment. But in all these cases, I think the person who profits from the change should also bear the cost it has on others. So if you invent a way to increase productivity, there is no need to pay; but if your employer uses it to make their workers redundant, they should provide for their continued livelihood. Of course this doesn't really work when a different industry is obliterated (which is why this is impractical).
> And how long does this tax last? Forever? Are people still paying taxes for all the farmers we don't have to have anymore?
Assume for a moment that being a farmer were hereditary and they couldn't do anything else anyone would find of value. Then when you replace all of them by machines, you make huge profit, but also leave hundreds of people without income. In such a case, I think it only fair that the farmers and their descendants be provided for indefinitely.
That this tips the scale against automation is not exactly bad: if the farmers have to be provided for anyway, additionally maintaining machines to do work they could do just as well is a further cost that should be weighted against the benefits.
However, in reality most people can learn to do other work, so automation can still end up a net positive, even when the needs of the displaced workers are taken into account.
I guess the problem will solve itself when workers will either employ themselves as revolutionaries and looters, or the beneficiaries of automation pay the equivalent of this tax to prevent this from happening.
Wow! Gotcha! Turns out modern economies are complex. Who knew?
But our economic system is literally grinding to a halt, which means it's not exactly perfect. I for one welcome suggestions, even if they're only slightly less imperfect.
Then who pays the tax?
What if I invent a whole new product category that obsoletes a whole industry? Not a lot of people manufacturing typewriters anymore.
What if I invent a cheaper way to ship goods from China making it easier to shift manufacturing there? Who pays the tax then?
What if I'm an employee at the factory and I figure out a better way of doing things so that I can take on additional responsibility so when Bob (the guy next to me) retires we don't have to hire a replacement? Then do I pay?
And how long does this tax last? Forever? Are people still paying taxes for all the farmers we don't have to have anymore?
How confident are you that you can really write tax rules that make sense for the infinite number of scenarios via which productivity is enhanced in a modern economy?