Taxation on Robots

Hideto Koizumi, Business Economics and Public Policy, The Wharton School

Abstract: The advent of robots in the workplace has led to a debate about whether and how to tax this form of labor. The question for a policy maker is what the optimal taxation would look like, while that for corporations is what they should do in expectation of such taxes. This paper will attempt to theoretically answer these questions and calibrate our model to suggest concrete parameter values.