In 2017 Microsoft founder Bill Gates recommended taxing robots to slow the pace of automation. It has been estimated that up to 47 percent of U.S. jobs are at risk by advancements in artificial intelligence that has increased the rate of automation. While employment changes due to automation are not new, advances in artificial intelligence embedded within robots threaten many more jobs much more quickly than historic automation did. The chapter discusses how accelerated automation presents a revenue problem for governments. The revenue problem exists because the tax system is designed to tax labor more heavily, as labor is less likely to be able to avoid taxation. Capital investment, on the other hand, is taxed more lightly because capital is mobile and can escape taxation. When capital becomes labor, as in robotic automation, the bottom falls out of the system. With this background in mind, the Tax Cuts and Jobs Act (TCJA), enacted in 2017, significantly cut the U.S. corporate tax rate, from 35 percent to 21 percent. In addition, TCJA increased tax benefits for purchasing equipment (which would include automation in the form of robots), significantly enhancing bonus depreciation. The 2017 tax legislation continued and deepened the existing tax bias toward automation. This chapter explores policy options for solving the revenue problem.