Implementing a universal basic income (UBI) funded by a 5% tax on transactions by automated systems and AI agents would effectively address the growing displacement of workers due to rapid technological advancements, providing a financial safety net that allows individuals to retrain, pursue education, or start businesses without the immediate fear of poverty. This policy also ensures a fair redistribution of wealth generated by automation, as the tax directly targets the profits from AI-driven efficiencies that benefit corporations disproportionately, channeling those gains back into society to reduce income inequality and foster social stability. Furthermore, by stimulating consumer spending through guaranteed income, UBI could boost economic growth, encouraging innovation in human-centric sectors while mitigating the risk of widespread unemployment and social unrest in an increasingly automated world.

Opposing this policy, the 5% tax on automated transactions risks stifling technological innovation and economic progress, as companies might reduce investments in AI to avoid the financial burden, ultimately slowing productivity gains and global competitiveness. Additionally, the complexity of defining and enforcing such a tax—distinguishing AI-driven transactions from human ones—could lead to excessive administrative costs, loopholes, and unintended consequences like higher prices passed onto consumers, exacerbating inflation without guaranteed benefits. Moreover, UBI itself may discourage workforce participation by providing income without work requirements, potentially leading to dependency, reduced labor supply, and long-term fiscal strain if the tax revenue fails to cover the program's expansive costs in a dynamic economy.