Economics Minister Reiche contradicts her cabinet colleague Wildberger on digital tax

Economics Minister Katherina Reiche contradicts her cabinet colleague Karsten Wildberger (both CDU). The Federal Minister for Digital Affairs and State Modernization recently brought an AI tax into play. “I don’t know now whether a direct tax will encourage people to invest here and create the necessary freedom,” explained the CDU politician at WELT’s German AI Prize. “I’m now risking the headline ‘Reiche contradicts Wildberger’.”

She sees Wildberger's proposal "as a response to a feeling of unease that value creation is currently taking place in a place that is at least not on our continent." She is the type of person who wants to introduce artificial intelligence first before a tax is levied on it.

“Let us first work on sufficient sovereignty in Europe and create regulatory conditions so that something that is currently developing is not regulated to death,” demanded the Federal Minister for Economic Affairs and Energy.

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Federal Digital Minister Wildberger had advocated taxing sales of artificial intelligence in Germany. In his view, the money should be used to pay for the restructuring of the labor market.

“We have to tax the extremely high sales with this technology, and we can use the money to finance the conversion, that is also my approach,” Wildberger told the “Tagesspiegel”. “If growth and value creation occurs in this country, taxes must also be paid here.”

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In an interview with RTL/ntv, Wildberger later restricted his statements. “I want growth through AI and I’m not talking about new taxes,” he said. First, Germany must take advantage of the economic opportunities offered by the technology. “My suggestion is: Let’s let the growth come first,” said the minister. He did not rule out later taxation.

Microsoft founder Bill Gates has long been calling for robots and AI to be taxed. He wants to reduce the incentive to replace people with machines. Gates fears that artificial intelligence could lead to massive job losses.

Wildberger also expects that AI will fundamentally change the world of work. In the long term, more employment will be created, but in different jobs than today. According to the minister, retraining and new activities, for example in crafts or nursing, must be financed. This requires growth and openness to other instruments.

doli with dpa