• No current U.S. federal robot tax, but proposals are emerging.

• New York's Assembly Bill A8179 aims to tax companies displacing workers with automation.

• Senator Bernie Sanders supports taxing robots to fund worker retraining.

• Experts are divided: some see it as necessary for fairness, others warn it could hinder innovation.

• South Korea reduced automation tax incentives; the EU rejected a robot tax.

• Businesses should monitor developments to prepare for potential changes.

What if your AI employee came with a W-2 form?

Lately policymakers and think tanks are asking just that. With AI and robots taking on more tasks, some experts wonder if companies should still pay the same payroll taxes when a human is replaced. Back in 2023, Sen. Bernie Sanders warned that “if workers are going to be replaced by robots…we’re going to need to adapt tax and regulatory policies” to prevent a “race-to-the-bottom”. (corporationsfuturism.com).

New York legislators have already proposed a “robot tax” on companies that cut jobs due to automation. (automationtaxpolicycenter.org). On one hand it makes sense - essentially we have an employee, in some form, performing tasks, working hours, and contributing to company production and growth; on the other hand - who really likes to pay taxes (especially when they aren’t used for the benefit of all), and as robots and Artificial Intelligence combine and evolve - will they also benefit (in some way) from the taxes they are paying?

In short: your smart toaster isn’t filing taxes (yet) – but the idea of taxing AI in place of workers is gaining traction.

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New “Robot Tax” Proposals in the U.S.

As of 2025, several proposals have popped up: