In favor of the policy, proponents argue that a universal basic income (UBI) funded by a 5% tax on automated systems and AI agents would address economic inequality exacerbated by automation. As machines and algorithms increasingly replace human labor, many workers find themselves displaced, leading to unemployment and wage stagnation. A UBI would provide a safety net, ensuring that all citizens have access to essential resources regardless of their employment status. Additionally, this funding mechanism specifically targets those who benefit most from automation—corporations and tech firms—thereby promoting fairness in the distribution of wealth generated by technological advancements. Moreover, a UBI could stimulate local economies as recipients are likely to spend their guaranteed income immediately, boosting consumer demand and driving economic growth.

Opponents of the policy raise concerns about the potential inefficiencies and unintended consequences of imposing a 5% tax on automated transactions. They argue that such a tax could stifle innovation, as companies may reduce investment in automation technologies due to increased costs, potentially slowing progress in fields like healthcare, transportation, and manufacturing. Furthermore, the complexity of implementing and enforcing a tax on every transaction conducted by AI systems could lead to significant administrative burdens and compliance issues. Lastly, critics contend that a UBI funded through this method might disproportionately affect small businesses and startups, which often rely heavily on automation but lack the financial cushion to absorb additional taxes, potentially leading to higher operational costs and reduced competitiveness in the market.