The Robot Tax That Is Actually Working

European robot taxes are generating minimal revenue while distorting automation investment and pushing manufacturing toward untaxed regions.

• Mechanism: Some European jurisdictions (France, certain German states) tax robots on the gap between automation cost and the wages of displaced workers, e.g. a $50k/year robot replacing two $40k workers.
• Fiscal outcome weak: Pilot zones have raised only "a few hundred million euros" continent-wide, while retraining/safety-net costs have ballooned, making the policy a net fiscal loss.

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