Furman: AI Transition Needs a New Tax System

Summary

Economist Jason Furman discusses AI's moral dimensions and the need for a balanced approach between regulation and market adaptation. He argues that AI problems like bioweapons need strict regulation, while job displacement requires tax reform and worker support, not technology bans. He sees no global AI regulator but hopes for US-China convergence, and believes the AI race matters less over time as older models suffice for most uses.

• AI raises moral questions about meaning and purpose, not just economic growth and inflation.
• Bioweapons warrant strict regulation; student cheating and job loss need societal adaptation.
• The US should pursue broad-based, low-rate tax reform rather than AI-specific corporate taxes.
• Global AI regulation is unrealistic, but limited US-China convergence on shared risks is possible.
• The US-China AI race may matter less over time as older, cheaper models become adequate for most tasks.
• Policymakers should focus more on moral and societal conversations about AI's impact.