Raghuram Rajan backs tax breaks for retraining AI affected workers
Business
Economist and former Reserve Bank of India governor Raghuram Rajan thinks companies should get tax breaks if they retrain employees whose jobs are affected by AI.
He believes businesses know best where future roles will open up, and says helping workers reskill is key as AI changes the job market.
Raghuram Rajan proposes AI token tax
Rajan also points out a gap: a US firm pays social security taxes for people, but not for AI systems.
He suggests starting with a small tax on the AI tokens used by firms, and gradually increasing it, so innovation isn't hurt but workers aren't left behind.
He even recommends expanding these policies to cover foreign AI providers, aiming for a fairer system as tech keeps evolving.