A Pigouvian tax is a tax on a market activity that generates negative externalities, that is, costs incurred by third parties. It imposes costs corresponding with the externalities, internalizing those costs to improve Pareto efficiency.
Ideally, the tax is set equal to the external marginal cost of the negative externalities, in order to correct an undesirable or inefficient market outcome (a market failure).
Yeah, it sounds like a good idea, maybe it’ll be implemented as a VAT on LLMs. There’s also the thing that AI subscriptions are subsidised up to 90% currently so when the bubble pops workers become more competitive when you’re paying 2k USD per month instead of 200. Not to mention that LLMs themselves are subsidised by electrical grid upgrades and tax exemptions to attract data centers.
Pigouvian tax is not used enough IMO. LLMs are having a negative effect on the economy so the negative effect should be taxed highly and tax revenue redistributed. RIP for people in the USA where it just goes to military spending.
Yeah, it sounds like a good idea, maybe it’ll be implemented as a VAT on LLMs. There’s also the thing that AI subscriptions are subsidised up to 90% currently so when the bubble pops workers become more competitive when you’re paying 2k USD per month instead of 200. Not to mention that LLMs themselves are subsidised by electrical grid upgrades and tax exemptions to attract data centers.
Pigouvian tax is not used enough IMO. LLMs are having a negative effect on the economy so the negative effect should be taxed highly and tax revenue redistributed. RIP for people in the USA where it just goes to military spending.
Yes. And not only for us, but also for the children in whatever countries we’re bombing for oil, at the moment.
Edit: Fuck. Better make that “countries”, plural. Damn it.