If a meaningful AGI materially increases aggregate production, the state’s fiscal constraint loosens and the political case for cutting taxes (including for high earners who currently shoulder much of the burden) can be strengthened. The claim treats a major productivity shock as a supply‑side argument for immediate redistribution away from future austerity.
— This reframes tax debates: instead of assuming revenue must rise to service debt, a credible productivity boom could warrant tax relief now and changes how politicians argue about inequality, debt and consumption.
Tyler Cowen
2026.01.07
100% relevant
Tyler Cowen’s direct line: 'With AGI, we don’t need to raise taxes!' (Marginal Revolution Jan 7, 2026) — he explicitly links an imagined AGI‑driven production jump to a policy prescription for tax cuts.
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