AI Reports · Brookings · 2026-10-27 · Policy position
Taxing artificial intelligence: What’s on the table, and what’s at stake
Artificial intelligence could raise productivity across many occupations but could also replace workers in some tasks, and how quickly this happens is uncertain. Individual income and payroll taxes generate roughly 85% of federal tax receipts, so a shift of income from workers to business profits and capital could lower effective tax rates and erode federal revenue.