The policy of implementing a universal basic income (UBI) funded by a 5% tax on transactions made by automated systems and AI agents has several compelling arguments in its favor. First, it ensures economic security for all citizens by providing a stable source of income, reducing poverty and inequality. This is particularly significant as automation and AI continue to disrupt traditional job markets, leaving many individuals vulnerable to job loss. By redistributing wealth generated from automated systems, which are often controlled by large corporations and tech giants, the policy promotes a more equitable society. Second, UBI can stimulate economic growth by enabling individuals to invest in education, healthcare, and entrepreneurship, thereby fostering innovation and creativity. This contrasts with traditional welfare systems, which often impose bureaucratic hurdles and stigmatize recipients; UBI, being universal, avoids these pitfalls. Third, the tax on automated transactions targets a sector that is largely unaffected by economic downturns, ensuring a reliable revenue stream for funding UBI. This approach shifts the financial burden onto AI and automated systems, which generate significant profits, rather than solely relying on taxpayers.

However, the policy also faces strong opposition based on several concerns. One argument is that the tax on automated transactions could discourage investment in AI and automation, potentially stifling technological progress and innovation. Businesses may hesitant to adopt or develop automated systems due to the added financial burden, which could hinder economic growth and limit the development of new technologies. Another concern is the complexity and feasibility of implementing such a tax. Tracking and collecting taxes on automated transactions would require significant infrastructure and regulatory oversight, which could be costly and challenging to enforce effectively. Additionally, there are worries about the long-term sustainability of the policy. The revenue generated from the tax may fluctuate depending on the adoption and performance of automated systems, creating uncertainty in funding UBI. Critics also argue that UBI might reduce incentives for individuals to work, leading to a potential decline in productivity and labor force participation. Addressing these challenges would require careful consideration and robust policy design.