Technological innovation like automation using robots to produce goods and provide services creates tremendous opportunities for businesses. But as the cost of producing robots goes down, is this technology widening the income gap? Economist Arnaud Costinot has been studying technological change and its impact on inequality, and in this podcast, he discusses how a robot tax might help better distribute the benefits of artificial intelligence, or AI technologies. Arnaud Costinot is a Professor of Economics at MIT, and coauthor of Robots, Trade, and Luddism: A Sufficient Statistic Approach to Optimal Technology Regulation. Costinot was invited to present his research at the IMF.
International corporate tax avoidance is a growing concern for both advanced economies and low-income countries. The changing nature of the global economy–notably increasing digitalization, in some cases, is making it easier for firms to shift profits to low-tax countries. Michael Keen is a Deputy Director in the IMF’s Fiscal Affairs Department, and in this podcast he says the international tax system is under unprecedented stress. Keen was a lead author of a recent IMF policy paper that sets out the current state of the international corporate tax system and explores ways to address some of its shortcomings.