Apr 28, 2025

Economic Feasibility of Universal High Income (UHI) in an Age of Advanced Automation

Anusha Asim, Haochen (Lucas) Tang, Jackson Paulson , Ivan Lee, Aneesh Karanam

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Summary

 This paper analyzes five interlinked fiscal measures proposed to fund a Universal High Income (UHI) system in response to large-scale technological automation: a unity wealth tax, an unused land and property tax, progressive income tax reform, and the Artificial Intelligence Dividend Income (AIDI) program. Using dynamic general equilibrium modelling, IS-MP-PC frameworks, and empirical elasticity estimates, we assess the macroeconomic impacts, revenue potential, and distributional consequences of each measure. Results indicate that the combined measures could generate 8–12% of GDP in annual revenue, sufficient to sustainably support a UHI framework even with 80–90% unemployment. The wealth tax and land tax enhance fiscal resilience while reducing inequality; the progressive income tax improves administrative efficiency and boosts aggregate consumption; the AIDI channels the productivity gains of automation directly back to displaced workers and the broader public. Nonetheless, each policy presents limitations, including vulnerability to capital flight, political resistance, behavioural tax avoidance, innovation slowdowns, and enforcement complexity. AIDI, in particular, offers a novel mechanism to maintain consumer demand while moderating excessive automation, but demands careful regulatory oversight. Overall, the findings suggest that, if implemented carefully and globally coordinated, these measures provide a robust fiscal architecture to ensure equitable prosperity in a post-labour economy dominated by artificial intelligence. Strategic design and adaptive governance will be essential to maximize economic stability, technological innovation, and social welfare during this unprecedented economic transition.

Cite this work:

@misc {

title={

Economic Feasibility of Universal High Income (UHI) in an Age of Advanced Automation

},

author={

Anusha Asim, Haochen (Lucas) Tang, Jackson Paulson , Ivan Lee, Aneesh Karanam

},

date={

4/28/25

},

organization={Apart Research},

note={Research submission to the research sprint hosted by Apart.},

howpublished={https://apartresearch.com}

}

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This work was done during one weekend by research workshop participants and does not represent the work of Apart Research.
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