I refuse to accept that future. Building an economy that works for all of us will require multiple policy responses. But it starts by acknowledging: it’s time to tax AI and invest in people.
Big Tech CEOs say this is only the beginning, predicting that AI will soon automate most white-collar tasks. Yes, some of this may be hyperbole. But there is no denying that AI is already changing the labor market. And because health care is often tied to a job, an AI wave could cost a family more than a lost paycheck. Even those whose jobs and insurance remain intact could be hit: experts warn that the hype around AI is fueling a financial bubble that threatens another economic crash.
But any response to a looming AI crisis must also tackle our rigged tax code.
We can start by making corporations pay their fair share. Right now, companies pay payroll taxes for their workers but get tax breaks for investing in technology—effectively, a tax penalty for hiring human beings and a tax break for buying equipment. In an AI world, that means our tax code is incentivizing corporations to fire people and replace them with AI. That’s wrong. We need to level the playing field by raising taxes on corporations and capital gains and closing corporate loopholes. One way to tackle those loopholes? Strengthen the minimum tax for billionaire corporations, which I helped pass into law.
Rethinking our tax code must also include going to the source: that means taxing AI companies directly, which can start with taxing AI data centers. The majority of AI data centers are controlled or operated by trillion-dollar companies. By imposing a reasonable excise tax on the energy used by data centers, families could recoup some of the gains of AI, while America continues to stay competitive in the AI race. A well-designed tax would focus on the companies that can afford it and scale with AI’s impact: the bigger the data center, the more they pay.
AI was trained on human creativity and intelligence, AI was funded in part by federal investments in scientific research, and AI is powered by data centers that are built on American land and use our shared electric grid. The American people deserve to share in the success of this technology. And I’m willing to work with anyone to get it done.
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