AI Tax → Universal Basic Income
Explore how taxing AI-driven automation could fund universal basic income — grounded in real policy proposals from South Korea to the US Senate
Total AI Tax Revenue
Monthly UBI Payment
Citizens Covered
Avg AI Automation
Policy Controls
AI-Powered Companies
Taxable EntitiesMoney Flow Visualization
AI Companies
Annual AI Revenue
AI Tax Fund
Collected Revenue
Citizens
Per Person UBI
The Real-World Evidence
The Dutch Trust Experiments
Six Dutch cities tested removing welfare obligations (2017–2019). Utrecht found 20% of recipients took up part-time work vs 12% in the control group. Nobody stopped looking for work. The results led to the 2025 Participatiewet in balans — national law replacing coercion with trust.
AI Profits Could Fund UBI by 2028
A 2025 model shows AI capital profits alone could finance $12,000/adult/year once AI reaches 5–6× current automation productivity. Raising the public revenue share from 15% to 33% halves the required capability threshold.
UBI Doesn't Stop Work
Germany's 2025 Pilotprojekt Grundeinkommen: recipients worked 40 hrs/week — identical to the control group. Improved mental health, greater autonomy, especially for women.
The Case for an AI Tax
The IMF recommends a 1–3.7% optimal robot tax rate. Sanders' 2025 HELP Committee report proposes taxing corporations that replace workers with AI. The US tax code already implicitly subsidises automation over labour.
Further Reading
- Merola, R. (2022). Inclusive Growth in the Era of Automation and AI: How Can Taxation Help? — Frontiers in Artificial Intelligence. Evaluates robot tax revenue for UBI and displaced-worker transfers.
- Ahn, M. J. (2024). A Case for a Robot Tax in the Age of AI — Brookings Institution. Proposes taxing companies deploying autonomous AI to fund social welfare.
- Altman, S. (2021). Moore's Law for Everything — Proposes an American Equity Fund: 2.5% tax on market value, paying ~$13,500/year per adult.
- Almeida, F. & Ponce Bertello, P. (2025). UBI as a New Social Contract for the Age of AI — LSE Business Review. Robot taxes as a direct financial link between automation and social support.
- Acemoglu, D., Manera, A. & Restrepo, P. (2020). Does the U.S. Tax Code Favor Automation? — Brookings/NBER. Shows the US tax system implicitly subsidises automation over labour.
- Roosma, F. (2022). The Impact of the 'Basic Income Experiments' on Social Policy Reform in the Netherlands — European Journal of Social Security. Analysis of how the Dutch experiments shifted national welfare policy.
- Gielens, E. (2023). From Crackpot Idea to Mainstream Debate — Tilburg University. PhD dissertation tracing UBI's path into Dutch policy discourse.
- Watson Coleman, B. (2025). H.R. 5830 — Guaranteed Income Pilot Program Act — US Congress. Federal bill proposing a 3-year, 10,000-participant UBI pilot.