444 Economic Alternatives, Issue 3, 2022 Taxes, Digitalization and Decentralization * UNWE, Department of Economics 1 Beev, I. and Yotova, L. PUBLIC SECTOR ECONOMICS, Publishing Complex-UNWE, S.2021; ISBN978-619-232- 407-7; Chapter 12. 2 The report was also presented at the scientific-practical conference “Smart cities and municipalities - a vision for the future”, held on July 30-31, 2021 at “RIU Pravets Golf & SPA Resort” 3 https://www.weforum.org/agenda/authors/christopherpissarides/ (last visited on 23 July 2021). Received: 28.01.2022 Available online: 30.09.2022 Ivaylo Beev * Abstract In a statement at the World Economic Forum in Davos (2016), Nobel Laureate in Economics Christopher Pisaridis, outlined the need for creative strategies to develop new redistribution systems and income policies in response to the challenges posed by digitalization. The following report reproduces parts of the book “Public Sector Economics” 1 – with the sole purpose of promoting and once again validating the presence of this emerging topic 2 , which in the future will be crucial for the successful transition to the digital public sector. As per this regard, the publication presents some of the scientific results of the research project “Digital Public Sector” (NID 21-2020, UNWE). Keywords: taxes, digitalization, artificial intelligence, decentralization, digital public sector. JEL: H0 “Robots are not good taxpayers” Tax Policy in the Age of Automation, Abbott & Bogenschneider INTRODUCTION I n a statement at the World Economic Forum in Davos (2016), Nobel Laureate in Economics - Christopher Pisaridis outlined the need for creative strategies to develop new redistribution systems and income policies in response to the challenges posed by digitalization. He points out that the concept of universal basic income is “… one of the ways I support, as long as one knows how to apply it so as not to take away the incentive (for work) at the bottom of the market 3 ” (Pissarides; in parentheses - mine; I.B.). But “one should always be wary of simple solutions to complex problems, and a universal basic income is no exception.” The fact that this response to globalization and automation has been met with such enthusiasm is indicative not of a collapse in the economy, but rather of democracy and public relations” (Acemoglu, 2019). In other words, the introduction of basic income as a possible response to automation requires a serious restructuring of public sector relations. The academic literature examines a specific relationship between basic income, automation, and the introduction of taxation of robotized labor. The concept of basic income - in one form or another (e.g., in the form of social Economic Alternatives, 2022, Issue 3, pp. 444-453 DOI: https://doi.org/10.37075/EA.2022.3.05