Huffington Post Quotes Rob Kovacev on Tax Bill’s Effect on Automation

December 4, 2017

The Huffington Post quoted Rob Kovacev in a December 2 article titled “Here Are Six of the Most Radical Aspects of the GOP Tax Bill.” The article states that the GOP tax bill passed by the Senate is filled with perks for America’s wealthiest individuals and largest corporations, many of them paid for by closing loopholes that benefit middle-class people. One provision would allow companies to deduct from their taxable income the entire cost of certain kinds of business investments that were previously only eligible for a 50 percent deduction.

Mr. Kovacev says that the increase in the deduction comes at a time when corporations are investing in automation of their production facilities through the use of robots and artificial intelligence technology. He adds, “It’s going to accelerate spending, basically, on robots that could displace workers.” Mr. Kovacev is supportive of the deduction, because automation is likely to increase productivity ― defined as the amount of economic output generated per work-hour. He adds, “It would be a good idea to pair this with a tax incentive to encourage companies either to employ more human workers or retrain them for jobs in the new economy.” 

The full article can be read at The Huffington Post.