School of Business and Economics

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Disciplines include accounting, economics, finance, informatics, and management information systems. Providing open access to research and scholarly activities.

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    Book Review: How America was Tricked on Tax Policy:
    (Seattle Journal for Social Justice, 2020-09) Mironko, Arkadiusz
    In this well-argued and persuasive book Professor Bogenschneider dismantles much of the dogma of US tax policy. The crux of Bogenschneider’s argument is a discussion of 11 deceptions in tax policy ranging from (#1) the idea that tax cuts for the wealthy will cause economic growth, to (#7) the idea that workers don’t pay taxes because the income tax rates are progressive, to (#11) the idea that tax cuts for large corporations will cause a decrease in the prices of consumer goods. Notably, the other 8 deceptions not listed are of such significance and worthy of discussion on their own merits and to not mention of them here feels like leaving a suitcase or child behind on the platform in the train station. This intense feeling of the significance and novelty of Bogenschneider’s argumentation, and the ease with which it is presented, is an argument to read the book. Perhaps an important further point of introduction is that in the title Bogenschneider refers to the tricking of America, yet make no mistake, this is a book of international tax law and policy.
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    Should Robots Pay Taxes? Tax Policy in the Age of Automation
    (Harvard University. Text held by University of Surrey, SRI (Surrey Research Insight) in an Institutional Repository Republished in: Economic Law Review (Chinese), 2017) Bogenschneider, Bret N.; Abbott, Ryan
    Abstract: Existing technologies can already automate most work functions, and the cost of these technologies is decreasing at a time when human labor costs are increasing. This, combined with ongoing advances in computing, artificial intelligence, and robotics, has led experts to predict that automation will lead to significant job losses and worsening income inequality. Policy makers are actively debating how to deal with these problems, with most proposals focusing on investing in education to train workers in new job types, or investing in social benefits to distribute the gains of automation. The importance of tax policy has been neglected in this debate, which is unfortunate because such policies are critically important. The tax system incentivizes automation even in cases where it is not otherwise efficient. That is because the vast majority of tax revenue is now derived from labor income, so firms avoid taxes by eliminating employees. More importantly, when a machine replaces a person, the government loses a substantial amount of tax revenue— potentially trillions of dollars a year in the aggregate. All of this is the unintended result of a system designed to tax labor rather than capital. Such a system no longer works once the labor is capital. Robots are not good taxpayers. We argue that existing tax policies must be changed. The system should be at least “neutral” as between robot and human workers, and automation should not be allowed to reduce tax revenue. This could be achieved by disallowing corporate tax deductions for automated workers, creating an “automation tax” which mirrors existing unemployment schemes, granting offsetting tax preferences for human workers, levying a corporate self-employment tax, or increasing the corporate tax rate. We argue the ideal solution may be a combination of these proposals.