As artificial intelligence and automation tools grow more capable, entrepreneur and investor Mark Cuban says it’s time to start taxing robots.
“We need to start discussing now, what a robot tax looks like,” Cuban wrote on X last week.
He proposed a simple structure: “a straight amount per hour of use, per robot or cobot. Doesn’t matter what the shape or form is.”
Cuban’s comments came in response to a post suggesting that taxing AI and robots will become standard, just as wealthy individuals and corporations are taxed today.
Cuban agreed with the idea and warned against waiting too long to act.
He acknowledged that some may argue such taxes would hurt global competitiveness, but said every country will face serious social consequences if automation drives inequality too far.
“Every country will face the prospect of national instability if the economics get out of whack,” he wrote, “which is far more expensive than what you are paying in taxes on your robots.”
A Growing Debate Over Taxing Automation
The idea of a robot tax has been gaining attention for years. The goal is to discourage companies from replacing workers with machines and to help fund a stronger safety net for those who lose their jobs due to automation.
As technologies like machine learning spread across industries, experts and policymakers have warned that millions of jobs could be affected.
One study found that up to 47% of U.S. jobs could be automated, while another estimated that figure is closer to 9% in developed countries. The disagreement shows just how uncertain the future of work has become.
High-profile voices, including Bill Gates and Elon Musk, have also weighed in.
Gates supported the idea of a robot tax in a 2017 interview, arguing that companies should pay a similar level of taxes when a robot does the same work as a human.
Some lawmakers have even proposed policies. Former New York City Mayor Bill de Blasio once suggested forcing large corporations to pay income taxes for five years on any jobs they eliminate through automation.
In the UK, former Labour Party leader Jeremy Corbyn also called for a robot tax.
Supporters say it could help reduce income inequality and buy time for workers to retrain.
Mark Cuban, who first voiced his support for a robot tax in 2017, has said that automation is accelerating faster than many people realize.
Critics Warn of Innovation Penalty
Not everyone is on board with the idea. Critics argue that taxing robots could hurt innovation, reduce productivity, and create confusion over what counts as a “robot.”
Economist Yanis Varoufakis said it’s hard to calculate how much income a human worker would have made in a field now dominated by robots.
Instead of a tax, he suggested a universal basic dividend, a public share of corporate profits.
Industry groups like the Advancing Automation trade association have called robot taxes an “innovation penalty.”
ABB Group CEO Ulrich Spiesshofer said it’s no different than trying to tax software and pointed out that countries with high levels of automation often have low unemployment.
South Korea’s Example
Despite the controversy, one country has made a move. In 2017, South Korea reduced tax incentives for companies investing in automation.
While not a direct robot tax, it was widely seen as the first attempt to slow the pace of machine-led job loss.
Francisco Ossandón, a legal scholar, has argued for a narrow version of the tax that only applies to large firms and specific industries, and uses a clear, limited definition of what a “robot” is. But he stops short of endorsing a general robot tax.
Tax law expert Xavier Oberson has even proposed making robots “tax-compliant” in the future, meaning owners could be taxed until machines are advanced enough to pay taxes themselves.
A Conversation That Isn’t Going Away
Mark Cuban’s recent post shows that the robot tax debate is moving from academic papers and policy circles into mainstream discussion.
His flat-rate, per-hour approach could make the concept easier to implement and understand.
As more jobs become automated, from warehouses to customer service to driving, questions about how to adapt tax systems and protect workers will only grow louder.
Whether or not Cuban’s vision is adopted, the conversation he’s pushing is one that governments may not be able to avoid much longer.
“Tax the rich” might soon become “tax the AI.”
IMAGE CREDIT: “Mark Cuban” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.