## Arguments in Favor

Proponents argue this policy offers a vital solution to economic disruption caused by automation. As AI and automated systems displace human workers across industries, UBI funded by a tax on those precise systems creates a self-sustaining mechanism where the "winners" of the digital age directly finance a safety net for displaced workers, preventing widespread poverty and social unrest. Furthermore, the transaction tax taps into a rapidly growing revenue base; digital transactions and AI-driven economic activity are increasing exponentially, creating a vast, sustainable source of funds uniquely tied to the technology driving displacement, rather than burdening traditional labor or capital. Finally, UBI provides essential security, freeing individuals to pursue education, start small businesses, care for families, or engage in meaningful community work, fostering a more resilient and adaptable society better equipped for the transition to an AI-integrated economy.

## Arguments Against

Opponents contend that a transaction tax specifically targeting automated systems and AI agents poses significant economic risks. Such a tax could dramatically increase the operational costs of efficient digital transactions and AI deployment, stifling innovation, slowing productivity gains, and potentially making vital services more expensive for consumers, ultimately hampering overall economic growth. The implementation also presents formidable challenges: defining and tracking "automated system" and "AI agent" transactions globally and in real-time is technologically complex and legally murky, creating massive compliance burdens, enforcement difficulties, and opportunities for evasion that could cripple the funding mechanism. Finally, critics argue that directly taxing automation and AI activity acts as a disincentive to their development and adoption—technologies crucial for maintaining competitive advantage and solving complex global problems; dampening this innovation through targeted taxation could harm long-term societal progress and economic dynamism more than it helps.