> Taxing wealth is much harder on a practical and algorithmic level than taxing income.

Depends on the tax. It is a lot easier to move move profits to a low tax jurisdiction than it is to move land or machinery.

> But either way, taxing the tool is micromanaging the problem, and some powerful people cynically promote that because they can aim the details away from themselves.

I definitely agree with that.

There are all sorts of problems. Do you tax this notional "income" where the work is done or where the AI runs or where the company that owns it is incorporated?