If Comrade Clayton had been around in 1920, he would have been screaming for a tax on tractors because of all the farm jobs that were about to be lost. Here is the history:
In the early 1900s, the tractor was revolutionizing farming, and politicians were pushing proposals to tax the tractor and prevent the loss of farm jobs. Rep. Willian Connery, a Massachusetts Democrat and Chairman of the House Labor Committee, was a leading advocate of taxing tractors and other labor-saving machines to stop mass unemployment.
The introduction of tractors was the most revolutionary change in our history, affecting millions of jobs and driving millions off the farm. Between 1910 and 1960, nearly 10 million farm workers lost their jobs and 25 million people left their farms for the city. The benefits of the tractor were enormous. Farm production soared, food prices dropped, and the U.S. provided enough food to feed people around the world.
The farm revolution transformed the American economy, creating growth, and increasing prosperity. Millions of farm workers were freed from back-breaking labor and found better jobs in the city. An NBER study called tractors the “engine of growth” and estimated they doubled per-capita GDP and created millions of jobs.
AI promises a bright future of technological and scientific progress, increased productivity, and a more prosperous economy. Like many changes in the past, there are concerns about the impact on jobs. But taxing AI would be just like taxing tractors, a futile knee jerk reaction to change.
Not surprisingly, there is no shortage of terrible tax ideas floating around Washington. Senator Bernie Sanders has proposed a 50% tax on the equity of AI companies. Senators Elizabeth Warren and Ron Wyden have proposed new taxes on data centers. House Democrats have proposed a new tax on AI computing powers, and others have proposed a tax on robots. If it moves, they want to tax it.
None of these tax increases are a good idea. Raising taxes on AI would slow investment, curb innovation, and only help our foreign competitors. Just like a tractor tax, a new AI tax would only slow new technological advances that will benefit everyone.
Rather than taxing AI, Washington should focus on assisting those jobs which have been most affected by automation, such as entry-level jobs. Congress should consider targeted tax incentives for entry-level employment, including payroll tax relief and job training for junior workers. Helping young workers get started is a much better response to the AI revolution than trying to stop it with a tax increase.
FACT: Clayton Tucker’s daddy owns one of these evil devices and fatboy Clayton has USED it in his campaign ads. Think of how many farms jobs he destroyed by doing that!
The headline could be “Fat, lazy trust fund kid uses daddy’s tractor to avoid paying poor farm workers. Destroys dozens of jobs. Evil Big Wig!!“
