German Minister Proposes Taxing AI Revenue to Fund Labor Market Transformation
Politics

German Minister Proposes Taxing AI Revenue to Fund Labor Market Transformation

Digital Minister Karsten Wildberger (CDU) has stated his intention to impose taxes on the revenue generated by Artificial Intelligence within Germany. According to his comments to the “Tagesspiegel”, he argues that this revenue must be taxed, and the funds collected will be used to finance the necessary restructuring of the labor market. He maintains that if growth and value creation emerge in Germany due to this technology, taxes must consequently be paid domestically.

The Minister believes that AI will fundamentally alter how people work. Although he anticipates that more job opportunities will arise in the long run, these jobs will look different from current roles. To support the transition, he asserts that retraining programs and new activities, particularly in trades or caregiving, will need to be financed. This requires both economic growth and an “openness for other instruments,” according to the Digital Minister.

Wildberger was responding to a suggestion made by Microsoft co-founder Bill Gates to tax robots and AI, a measure Gates proposes to reduce the incentive for replacing humans with machines.

Regarding the potential for a digital tax, he noted that while it is technically possible, he did not comment on whether he would maintain the position if U.S. President Donald Trump threatened tariff penalties. He added, “Naturally, we also need a cohesive global system.” However, he stressed that his current primary focus is rather on how Germany can spur its own growth and value creation within the field of AI.