The AI Tax Paradox: Balancing Economic Growth With Equitable Taxation In The AI Era

Abhijeet Peter, School of Law, NMIMS, Mumbai

ABSTRACT

Introduction: This abstract introduces a comprehensive exploration of the multifaceted challenges posed by AI taxation policies. Acknowledging the transformative impact of Artificial Intelligence on economic activities, the research unfolds with three pivotal investigations: the evolution of AI technologies, the socioeconomic implications of AI taxation policies, and the ethical considerations, transparency, and international collaboration in AI taxation policies.

Purpose: The purpose of this research is to unravel the intricate dimensions of AI taxation, aiming to bridge the gap between rapidly advancing AI technologies and the established tax frameworks. The study involves examining the historical trajectory and impact of AI technologies, understanding how existing tax structures influence socioeconomic dynamics, and proposing ethical, transparent, and globally collaborative AI taxation policies.

Methodology: A multidimensional approach is employed to address each facet of the research. For the evolution of AI technologies, the study involves a historical analysis paired with an examination of its impact across diverse industries. The exploration of the socioeconomic implications scrutinizes existing tax structures, analyzes job market dynamics, and assesses income distribution. The study on ethical considerations and international collaboration employs a qualitative analysis, exploring transparency levels, ethical implications, and avenues for global cooperation in AI taxation policies.

Findings: The findings from the research reveal the transformative journey of AI technologies, emphasizing their varied impacts on different industries. The exploration of the socioeconomic implications exposes the intricate interplay between AI taxation policies and socioeconomic dynamics, including disparities in tax burdens, job market implications, and income distribution. The investigation into ethical considerations and international collaboration highlights the challenges and imperatives for navigating the ethical complexities of AI taxation.

Value: This research adds substantial value by offering nuanced insights into the intricate interplay of AI and taxation. The findings contribute to informed policymaking by proposing modifications to tax structures, addressing socioeconomic inequalities, and fostering ethical, transparent, and globally collaborative AI taxation practices. The research serves as a foundational guide for policymakers, economists, and stakeholders navigating the dynamic landscape of AI-driven economies.

Keywords: AI Taxation, Evolution of AI Technologies, Socioeconomic Implications, Ethical Considerations, Transparency, International Collaboration, Tax Frameworks, Economic Growth, Job Markets, Fairness, Inclusivity.