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solumunuslast Monday at 3:34 PM1 replyview on HN

Yes, that’s how a software business works. The OP seemed to be talking about how we need to reform tax due to worker replacement. Everyone is talking past each other.


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bruce511last Monday at 3:50 PM

Correct, building an AI is an asset, which can then be rented to other businesses.

However the thread revolves around employers replacing employees with AI. Given that the number of AI creators is minimal, and the number of companies replacing employees is large, it follows that most companies replacing employees are renting AI, they did not create it.

Hence, for those companies, AI is not an asset, it is an expense.

One way of taxing those companies would be to tax AI producers based on revenue, not profits. If 50% of revenue was tax, then, the costs of AI to the end-user would go up to cover that. So revenue would "double", but half would go to govt.

I am not a tax lawyer though, but I expect such a scheme is so radically different to the current tax regime, that is has precisely zero chance of being implemented like this.

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