As technology changes our lives, shouldn’t it change our taxes?
Smartphones, artificial intelligence, virtual reality, autonomous cars, the internet of things and 3D printing — it is no longer business as usual
Technology and the internet are changing our lives. Online shopping is displacing the high street. The gig economy is disrupting employment patterns and wages. Gaming and streaming are altering leisure habits. However, economies are being affected by the transformations to our lifestyles resulting from smartphones, artificial intelligence (AI), virtual reality, autonomous cars, to the internet of things and 3D printing. Online shopping and price-comparison websites give consumers better information and more choice of places from which to buy, making it harder for companies to raise prices. Central banks are thus questioning whether inflation targeting remains valid for setting interest rates, or if alternative targets or broader data sources should be investigated. But firms struggling to raise prices look to cut costs, including payrolls. Despite tight labour markets, global wage growth remains subdued with automation, or its threat, dampening bargaining power in low- and mid-skill...
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