Hopefully we can agree that automation is, on the whole, a good thing. If all work were automated, we could all live a life of idle luxury. If I were an emplo

Hopefully we can agree that automation is, on the whole, a good thing. If all work were automated, we could all live a life of idle luxury. If I were an employer running a factory with little automation, then I could spend some R&D money to develop machinery to automate my manufacturing, and then spend money to retool my lines to use that automation, and then under your proposal I would now lose all of my profits, since 100% of my profit would now be taxed. This would seem like a pretty big disincentive for me to invest in automation.