Skip to main content

Tax Reform Could Spur U.S. Adoption of Automated Systems

Tax Reform Could Spur U.S. Adoption of Automated Systems

IN BRIEF

Automation can help businesses cut costs compared to a human workforce, but the initial investment is typically high. However, the proposed U.S. tax bill might help make the hardware more affordable.

ROBOT REFORM

The ongoing political battle over U.S. tax reform has proven to be a particularly contentious issue in recent months. Proponents of the bill introduced in November argue that it will create jobs – but it might instead empower companies to accelerate plans to replace human workers with automated systems.
A provision included in the bill allows for the full and complete depreciation of capital spending. This means that businesses who purchase new machines or other hardware will be able to write off their cost against their profits in the first year, according to a report from The Intercept. This is a marked change from current regulations, which enable companies to write off such spending gradually over several years.

This provision could benefit a whole range of industries; everything from equipment used to drill for oil, to improvements to buildings and other facilities, would be covered. However, it’s also set to jump-start manufacturer’s efforts to implement automation.
Companies like Rockwell Automation and Emerson Electric, which produce machines of this kind, are set to benefit from the proposed tax bill. Emerson chief executive David Farr noted that he expects to see an uptick in demand if it passes with the provision intact.

NEW WORK ORDER

Automation has been poised to revolutionize the world of work for some time, with or without current tax reform proposals. However, the tax reform provision pertaining to capital spending could certainly play a role in convincing businesses that the time is right.
An automated work force may turn out to be cheaper than human employees, as upkeep and maintenance could potentially cost less than a living wage in the long run. The initial investment is the expensive part – and that could be mitigated by these new tax rules. 
Will Automation Steal My Job?
Click to View Full Infographic
Of course, the advent of automation isn’t necessarily a bad thing for us humans, although it will certainly cause a great deal of upheaval. Advocates maintain that robots and machines will be able to take care of the most repetitious or physically grueling jobs, hopefully opening up different, more specialized roles for humans to fulfill.
There have been several proposals for methods of taxing the machines themselves, which could in turn pay for a universal basic income to support those rendered jobless by the transition to automated labor. Yet robot taxation has been criticized by some, who suggest that such a move might make the investment less appealing for businesses. Clearly, the effect of the tax proposal would have quite the opposite effect.
The fields of artificial intelligence and robotics have come a long way in recent years, and now they’re set to have a massive impact on the global economy. In an ideal world, this technology would make industries more productive without having negative consequences for the workers who are supplanted. However, we need to make sure that the transition is made with the proper consideration for all parties who will be affected by the change.

Comments

Popular posts from this blog

AVENGERS :INFINITY WARS PART 2 ANNOUNCED

     AVENGERS :INFINITY WAR                         PART I                                    Part II   ANNOUNCED FOR RELEASING IN     MAY 2019     AVENGERS :INFINITY WAR                           PART I                 To be hitting in cinemas on                   25 APRIL 2018  

MOST HAUNTED MOVIE : THE NUN

THE NUN :  COMING SOON We have everything you need to know about The Nun, which continues The Conjuring franchise's saga into 2018.... What was once the breakout sleeper hit horror movie of 2013,  The   Conjuring  has now spawned more than a franchise: it is a shared universe, which Warner Bros. intends to build in a ever growing, expansive way. So it'd be best to think on your sins before preparing yourself for the next chapter in the sage,  The  Nun .  As the latest spinoff from the James Wan series,  The Nun   will follow up on the devilish ghoul in a habit who was glimpsed in 2016's  The Conjuring 2 . Previously set to be written by David Leslie,  The Nun  ultimately was written by Gary Dauberman, who is working from a story he penned with  The Conjuring   director James Wan. Dauberman is best known for writing the scripts for  Annabelle  and  Annabelle: Creation . He also co-w...

To Save Lives, Self-Driving Cars Must Become the Ultimate Defensive Drivers

Advanced Transport To Save Lives, Self-Driving Cars Must Become the Ultimate Defensive Drivers by  The 2262 li   Getty Images IN BRIEF The myriad of potential causes of danger on the road makes programming self-driving especially difficult. Not only must programmers develop procedures for normal conditions, but also learn how to react when drivers and vehicles behave out of the ordinary. Srikanth Saripalli ,  Texas A&M University In early November, a  self-driving shuttle and a delivery truck collided in Las Vegas . The event, in which no one was injured and no property was seriously damaged, attracted media and public attention in part because one of the vehicles was driving itself – and because that shuttle had been operating for only less than an hour before the crash. It’s not the first collision involving a self-driving vehicle. Other crashes have involved  Ubers   in Arizona , a  Tesla in “autopilot” mode  in Flo...