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It should still tax, just not from physical labour. So the current jailing system in the U.S. would have to go. No more free labour. Sorry.

So who do you plan to tax, that doesn't labor and still have income for you to grab? Still haven't heard.

Oh, uh, goods and services!

Goods and services, produced by labor....

Yes, only the 'service' and goods are taxed, not the worker. A real life circuits and metal robot will be taxed for the services it provides, the human work done to produce products won't be taxed, instead only the products themselves will.

So the workers will be taxed when they buy the products? And the producer of the robot will taxed? Let's be honest a robot cannot pay taxes, it has no property or money to be taken. So....