# EU taxes AI workers to fund pensions

> EU must tax AI profits to keep funding pensions as jobs vanish.
- Title: EU taxes AI workers to fund pensions · EUobserver | Shortify
- Summary: EU must tax AI profits to keep funding pensions as jobs vanish. The EU will tax AI companies' profits to replace lost payroll taxes as automation reduces…
- Keywords: pensions, taxes, corporate profits, united states, european union, politics, world, workers, fund, EUobserver
- Source: EUobserver — https://euobserver.com/241372/eu-will-need-to-tax-ai-workers-to-keep-funding-human-pensions
- Published: 2026-10-07T08:50:51+00:00
- Read time: 1 min
- Topics: eu, ai, pensions, taxes, corporate profits, united states, european union, politics, world
## AI shifts work to machines
AI replaces human work with software and machines, eating away at the EU's tax base.
## EU's tax system at risk
Taxes on work make up 51.5 percent of EU-27 tax revenue, rising in 2024 as AI reduces workers.
## AI threatens pension funds
The IMF estimates 40 percent of global jobs are exposed to AI, risking fewer payslips and pension contributions.
## Shift tax burden to profits
The EU plans to shift more tax burden onto corporate profits as AI replaces workers with machines.
## Profit shifting risks
Companies move profits to low-tax jurisdictions, a pattern Europe has seen with firms in Ireland and Luxembourg.
## OECD framework for AI taxes
The OECD's two-pillar framework targets AI firms with a 15 percent global minimum tax on large corporations.
## EU's tax reforms face US pressure
US trade pressure has led to exemptions for US-parented groups from EU tax rules, weakening the framework.
## Key takeaway

The EU will tax AI companies' profits to replace lost payroll taxes as automation reduces workers.