The Economist: AI cutting labour's income share by 10 points would cripple most governments' tax bases

DavidSKrueger · x · 2026-10-05

The Economist analyzes what happens if AI cuts labour's share of national income by ten percentage points: a majority of governments that rely on taxing workers would face fiscal crippling, as income and payroll taxes shrink. The piece frames AI as a systemic threat to state finances, not just to jobs.

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