AI should lead policymakers to reduce taxes on capital income and corporate income, not to increase them.

This is a minority view. A few weeks ago, Roll Call reported that Massachusetts Senator Elizabeth Warren proposed an excise tax on data center energy usage; that Representative Greg Casar of Texas, chairman of the Congressional Progressive Caucus, has called for a tax on AI use; and that Senator Ron Wyden of Oregon may be exploring taxing tech companies to create a wage-security program for workers. Senator Josh Hawley, the Republican populist from Missouri, also seems warm to the idea of taxing AI companies.

Meanwhile, Wall Street Journal columnist Greg Ip accurately reports that “one policy response” to potential AI dynamism that is “drawing growing support, at least among economists if not legislators,” is to “stop taxing capital more favorably than labor.” Big surprise, Senator Warren is in favor of raising........

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