Quotation Dimitropoulou, Christina. 2020. Scaling Back Tax Preferences on Artificial Intelligence-Driven Automation: Back to Neutral? World Tax Journal. 12 (2), 409-462.




This article discusses the possibility of the rehabilitation of tax incentives to address the negative effects of artificial intelligence (AI) automation, especially since investments in new technologies resulting in automation are largely subsidized. This idea is premised on the need to restore the neutrality of the tax system, understood in both its equity and efficiency dimensions. The article uses the concept of tax expenditures as the theoretical background for evaluating automation tax incentives and their potential limitation as to whether it might advance the tax system’s normative goals. By examining several automation tax preferences in light of tax neutrality, some risks were identified for both equity and efficiency based on the workers-machines substitution effect. The article concludes that a tax policy reducing tax incentives on AI-driven automation would be proportional to the aim pursued if the scope of the measure is designed by referring to the substitution effect between robots and workers and would not be such as to impede investment in AI that is socially desirable.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal World Tax Journal
WU-Journal-Rating new FIN-A, STRAT-C
Language English
Title Scaling Back Tax Preferences on Artificial Intelligence-Driven Automation: Back to Neutral?
Volume 12
Number 2
Year 2020
Page from 409
Page to 462
Reviewed? Y
DOI n.a.
Open Access N


Dimitropoulou, Christina (Details)
Institute for Austrian and International Tax Law IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5235 International law (Details)
5240 European law (Details)
5349 Business taxation (Details)
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