Writings on tax law and technology change often investigate three discrete but related questions: (1) how does tax law react to technology change; (2) how does tax law provoke technology change; and (3) how does tax law seek to preserve traditional interests (such as revenue collection) in light of technology change. In addition, observers sometimes raise concerns that the interaction of technology change and tax law can have a substantive impact on individuals, communities and/or national interests that may differ from the technology’s intended use (for example, automatic tax collection mechanisms may harm taxpayer privacy). The chapter reviews these writings and distils guiding principles for optimal tax law and policy in light of technology change.
