Bill Gates backs robot tax and guaranteed public jobs

Bill Gates, Microsoft co-founder and philanthropist, recently called for a tax on automation and a guaranteed public-jobs program. He framed the proposals as measures to offset job losses from machines and artificial intelligence and to preserve revenue for worker retraining and public services.

Gates described an automation levy that would function like a payroll tax, replacing revenue that falls as firms automate. He proposed earmarking revenue for education, apprenticeships and local job-placement programs to help workers transition into new roles.

On guaranteed jobs, Gates proposed government-funded positions or subsidies to employers that provide a wage, work and on-the-job training. He suggested prioritizing roles in care services, infrastructure maintenance and environmental work and including legal protections against routine dismissal so employees have time to upgrade skills.

Gates noted practical design questions: policy makers would need clear definitions of what counts as a taxable automated replacement and tax levels should be set to avoid discouraging productive investment. He also warned that firms could restructure operations to reduce tax exposure.

Supporters say taxing labor-replacing technology could slow the erosion of payroll tax bases and create funding for transition programs, while guaranteed jobs can deliver immediate employment and skill development. Opponents contend an automation tax may lower investment and raise costs for consumers; some economists favor targeted retraining, portable benefits or expanded income support instead.

Implementation challenges include measuring workforce displacement tied to a specific machine or algorithm, administrative burdens, the risk of corporate avoidance through restructuring or offshore shifts, and the need for stable funding, local coordination with employers and unions, and clear rules on hiring, performance and dismissal for guaranteed-job schemes.

The proposals form part of a broader policy debate on how governments should respond to automation and artificial intelligence. Options under consideration by policymakers include updating tax codes, wage subsidies, expanded unemployment benefits and experiments with basic income. Gates has raised similar arguments in past public remarks, calling for policies that use technology’s gains to help maintain social services and workforce stability.