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Bill Gates says billionaires should pay more taxes as AI widens wealth gap
Microsoft co-founder Bill Gates says philanthropy cannot solve the inequality created by artificial intelligence.
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Artificial intelligence is expected to create enormous wealth, but questions are emerging over who will benefit most from this growth. Microsoft co-founder Bill Gates believes governments will need to rethink how they tax the wealthiest people as AI transforms businesses and the job market.
In an interview for the Financial Times' Tech Tonic podcast, titled Bill Gates: AI bioweapons “could be worse than Covid”, Gates argued that philanthropy alone cannot address the growing gap between rich and poor.
Bill Gates says governments must address AI-driven inequality
Gates said the responsibility for tackling inequality should rest primarily with governments, rather than relying on wealthy individuals to donate money voluntarily.
“The primary responsibility of dealing with inequality will always rest with governments,” Gates said. “We can’t expect philanthropy, which is voluntary in nature, to be the safety net.”
The Microsoft co-founder believes the rapid growth of artificial intelligence could widen the economic divide, particularly if the financial gains from the technology largely benefit people who already own significant wealth.
Gates has pledged to give away virtually all his fortune, estimated at around $100 billion, through the Gates Foundation. The money is expected to be spent over the next 20 years. However, he believes even large charitable contributions cannot replace the role of public policy.
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He said tax systems would need to change in an AI-driven economy, including measures that allow governments to tax people with substantial wealth and billionaires.
Gates also acknowledged that some wealthy individuals are already thinking about how to use their money for social good. He believes their contributions could complement government support, but should not replace it.
Why does Bill Gates want robots and AI to be taxed?
Gates has also proposed taxing robots and AI tools, arguing that existing tax rules can make it financially easier for companies to replace human workers with machines.
In an essay published on Gates Notes, he pointed out that employers pay payroll taxes when they hire people, while buying a robot can often be treated as a business expense.
He believes taxing robots and AI usage could slow the shift away from human labour and generate funds for worker retraining and stronger social support systems.
However, not everyone in the technology industry agrees with his approach. Nvidia CEO Jensen Huang has expressed support for people contributing through taxes, but disagrees with Gates' proposal to tax robots.
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In an interview with Fox Business, Huang said he saw the impact of AI differently and believed there could be several ways to address the changes it brings.
For Gates, the challenge is not just how much wealth AI creates, but whether its benefits reach beyond the people who own the technology.
