What aspect of the U.S. tax structure actively reinforces the financial rationale for companies to automate?

Answer

Taxing employers for labor via payroll taxes while allowing deductions for machinery purchases.

The U.S. tax structure reinforces automation by taxing labor through payroll taxes while simultaneously allowing deductions for the purchase of machinery and software, effectively subsidizing the replacement of human employees.

What aspect of the U.S. tax structure actively reinforces the financial rationale for companies to automate?
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