EU’s Exploration of an AI Tax Shows an Anti-Innovation Mindset

TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Foundation Director Critiques Potential AI Levy in Europe. Broad Corporate Tax Improvements Would Better Boost Innovation.

Artificial intelligence (AI) has become an increasingly salient issue for governments. In Europe, the AI question already has turned from how we can embrace it to how we can tax it.

Recent AI advancements come at a time when the EU is claiming to move away from overregulation to focus on competitiveness. If the EU is serious about this mission, its answer to the AI-tax question matters. Broad-based improvements to corporate taxation would better support an innovative Europe than narrow carveouts or punitive tax hikes.