Connecticut Proposes Taxing AI Productivity Gains

0:00Connecticut lawmakers are eyeing a new bill that could lead to taxing companies for productivity boosts from artificial intelligence and other tech, especially when those gains come at the expense of jobs. The proposal asked the Office of Policy and Management to craft a plan by January 1, 2027, targeting what's called A. Productivity Gap, where businesses keep or grow revenue while shrinking payroll. The surcharge would kick in for employers whose revenue per worker hour climbs even as their Connecticut workforce or payroll drops. Revenue from it would flow into a fund for worker retraining, technical education, and career shifts to help those affected by tech changes. On the flip side, firms that wrap up output through technology without cutting staff would get a permanent tax break on those gains called Augmented Productivity. This set up aims to reward smart tech use while penalizing job losses. The Finance, Revenue, and Bonding Committee has a public hearing on the bill set for Friday.

1:00If legislators don't approve the plan by July 1, 2027, the office can push ahead with its own rules. As artificial intelligence reshades workplace's nationwide, Connecticut's move highlights a push to capture tech windfalls for worker support, potentially setting a model for other states. From your city, powered by AI, this is Hartford News Today.