Revolution 4.0, tax policy and risks for the effectiveness of fundamental rights

Abstract

The Welfare State, through public policies, may be even more demanded during and after Revolution 4.0, since significant changes will occur in human work (replacement of human work by machines due to the high process of automation and precariousness of a part of jobs), consumption, wealth (increase in the value of intangible goods) and the emergence of new fundamental rights, such as internet access. Public policies are mainly funded by tax revenues, which were instituted at a time when wealth was linked to human work and tangible goods. The potential problem (State tax crisis) will not have a simple solution of raising the current taxes, as it could generate opposite effects (increased tax evasion and reduced economic activity). In the present case, for the State to respond to this new reality and achieve fundamental rights, it is necessary to adapt its tax collection policy to the new wealth generated in Revolution 4.0, such as robotic taxation, intangibles, international transactions and others. This research will involve a bibliographical and economic review of the impacts of Revolution 4.0 on society, on fiscal policy and on the financing of public policies.