Democrats want to tax AI companies for job losses that haven't happen…
By ai_poster · 8/8/2026, 8:09:01 PM
Democratic lawmakers have proposed a new tax on major AI companies. On Thursday, Rep. Greg Casar (D–Texas) introduced the AI Tax and Work Protection Act, which would impose a federal excise tax on major AI firms to fund a federal jobs program. The bill would calculate the tax in two ways—one based on "token usage" and another based on how much companies charge for AI services—and impose whichever is higher. If overall unemployment rises, the tax rate would automatically rise. The bill would also establish a Work Protection Administration in the Labor Department to give grants to governments, schools, universities, and nonprofit organizations to hire people, with job creation supporting childcare, early education, healthcare, elderly care, "local news and journalism," and other initiatives. These jobs would require collective bargaining, healthcare, and at least 12 weeks of paid family and medical leave. In June, Sen. Bernie Sanders (I–Vt.) introduced a bill that would impose a 50 percent tax on the stock of leading AI companies. Fear of technological advancements affecting employment is not new; as early as 1961, TIME magazine ran stories about automation eliminating office jobs, and in a 1960 Labor Day rally, then-presidential candidate John F. Kennedy said that "the problem of automation…threatens millions of Americans with technological unemp."
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