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ACADEMIC PAPER  ·  7,200 WORDS

The Care Dividend:
AI Productivity into Social Infrastructure

A policy framework for taxing concentrated AI profits to fund the care economy

AI is widening inequality along existing lines of income & gender. Meanwhile, unpaid care work worth US$10.8 trillion a year remains almost entirely uncompensated. This paper proposes a Care Dividend: taxing a share of AI-linked profits & redirecting that revenue into the care economy. Using the UK as a test case, it models what this could fund & how to design it.

✓  Evidence from IMF, OECD, ILO & Financial Times data ✓  UK levy scenarios: £2.35bn to £11.75bn modelled ✓  Nordic comparison & fiscal multiplier analysis ✓  Practical tax design that avoids the robot tax pitfalls

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What the paper covers

From the distributional evidence on AI inequality to a concrete UK tax design, with honest arithmetic about what it can & can't fund.

THE PROBLEM

AI Widens the Gap

60% of high earners use AI daily vs 16% of lower-paid workers. Women are more exposed to displacement & less likely to benefit from augmentation.

THE INVISIBLE ECONOMY

Care as Infrastructure

Unpaid care is worth $10.8 trillion globally. Women do 76% of it. The UK care sector has 111,000 vacancies & poverty-level wages.

THE POLICY

The Care Dividend

Tax concentrated AI rents, not the tools. Fund care worker pay, Carer's Allowance reform, childcare, & pension credits for carers.