Artificial intelligence, automation, and increased labour mobility are reshaping how states can collect taxes. A new open-access anthology by researchers at LUSEM takes an interdisciplinary look at how digitalisation is transforming taxation – and what’s at stake for the Swedish welfare model.
How does digitalisation affect the state’s ability to finance welfare? And how should tax systems be reformed when work, consumption, and entrepreneurship are becoming increasingly borderless? These questions are at the heart of Taxation in the Digital Era: Economic, Legal, and Policy Challenges, edited by Åsa Hansson, Associate Professor of Economics at LUSEM.
Challenging traditional tax systems
“The rise of digitalisation is reshaping and challenging traditional tax systems at multiple levels,” says Åsa Hansson.
“It affects both how and where we work, which in turn changes states’ ability to collect taxes and creates a need for reform.”
She continues:
“In the book, we analyse the effects of AI, automation, and remote work, as well as how greater labour mobility challenges governments’ ability to levy taxes. We also examine how technological change raises questions about legitimacy and democratic implications.”
Sweden as a key case study
Sweden serves as a central case study in the book – a country that is both highly digitalised and deeply rooted in the welfare state tradition.
“With Sweden as a focal point, we explore broader questions about the consequences of digital transformation for nations’ ability to assess and enforce taxation, and the importance of international coordination in reforming tax policy,” Åsa explains.
“Sweden offers an interesting example for other countries to learn from. We are relatively advanced in digitalisation, yet our welfare and tax systems are particularly sensitive to technological change.”
The book also addresses themes such as technology-driven structural change, the financing of public welfare, international frameworks for taxation, and ongoing efforts to solve challenges linked to international tax coordination.
A resource for scholars and policymakers
Taking a multidisciplinary approach, the book integrates perspectives from economics, law, audit, and public policy to shed light on contemporary and future challenges in taxation. Each chapter provides different perspectives on how digitalisation affects individuals, companies, and tax authorities.
The book is available open access and offers valuable insights for scholars, students, and policymakers working in the fields of taxation, public economics, and welfare state research.
“The aim is to contribute to a broader understanding of how future tax systems can be designed in a digital age,” Åsa concludes.
In addition to Åsa Hansson, the book is co-edited by Joakim Wernberg (Ratio). Other contributing authors from LUSEM are Amanda Sonnerfeldt and Cécile Brokelind, researchers and teachers in Business Administration and Commercial Law, respectively. All three LUSEM researchers are also affiliated with the newly established tax network, LUTAX.