It takes an understanding of how the big picture fits together: But for those who have the capacity to understand the income tax must be dropped. Kudos to Mr. Gates. http://www.theblaze.com/stories/201...-the-huge-changes-coming-to-the-labor-market/ Within 20 years, âsoftware substitutionâ will dramatically reduce the demand for many types jobs, Bill Gates said Thursday at the American Enterprise Institute. Itâs a gloomy prediction that he says many people, including governments, arenât prepared for. Make no mistake, âsoftware substitutionâ is a fancy way of saying software automation â as in âbotsâ and whatnot. Many of the jobs that could be eliminated are lower skill occupations. âSoftware substitution, whether itâs for drivers or waiters or nurses ⦠itâs progressing,â Gates said. âTechnology over time will reduce demand for jobs, particularly at the lower end of skill set. ⦠20 years from now, labor demand for lots of skill sets will be substantially lower. I donât think people have that in their mental model.â Philanthropist Bill Gates, co-founder of the Bill and Melinda Gates Foundation, speaks about agriculture at the US Capitol in Washington, DC, on March 13, 2014. AFP PHOTO / Jim WATSON The billionaire also provided some common sense ways to get out ahead of the coming problem. Firstly, he said, the tax codes need to be updated to encourage companies to hire employees. He suggested possibly doing away with income and payroll taxes entirely. As he has before, Gates also warned against raising the national minimum wage out of fear that it will prevent employers from hiring new workers. Many of the workers that would be impacted by future âsoftware substitutionâ would be those making minimum wage, he argued. âWhen people say we should raise the minimum wage. I worry about what that does to job creation ⦠potentially damping demand in the part of the labor spectrum that Iâm most worried about,â Gates said.