Progressive Caucus Proposes AI Tax to Fund Jobs Programs
Greg Casar, the chairman of the Congressional Progressive Caucus from Texas, recently urged his fellow lawmakers to consider a tax on companies that utilize “AI-enabled layoffs.” He believes that the revenue generated from this tax should go toward job programs reminiscent of those initiated by President Franklin D. Roosevelt during the Great Depression.
According to AI entrepreneur Dario Amodei and Microsoft co-founder Bill Gates, there’s a looming concern that the unemployment rate in the U.S. could reach levels similar to those seen during the Great Depression within the next five years. Casar suggests that within a decade, many jobs may no longer require human workers.
In a guest opinion piece, he pointed out that companies like Intuit have already initiated layoffs, attributing these actions to AI advancements. He stated that corporations justify significant investments in AI by claiming it will reduce labor costs, while AI firms market their solutions as beneficial.
Casar pointed out a troubling pattern: whether AI technology is truly ready to replace human workers or not, companies are clearly set on laying off millions, often using AI as their rationale. He expressed concern that the U.S. government seems unaware of this trend.
He referenced past efforts by Republican leaders to establish a national AI framework, noting that the only significant AI proposal in Congress aimed to prevent states from regulating the industry, which ultimately failed.
Democrats are advocating for the AI tax to specifically target companies that stand to gain substantial profits through layoffs. Casar views this proposed tax as a necessary initial step toward addressing unemployment caused by AI. He envisions it could help slow job losses while funding job programs similar to those created under the New Deal’s Works Progress Administration (WPA).
He emphasized the importance of acting promptly, rather than waiting for the worst-case scenario. “AI companies are investing heavily in elections to influence regulatory discussions. We can’t allow these firms to amass even greater wealth and authority,” he remarked.
Addressing concerns that an AI tax might hinder U.S. competitiveness against China, Casar responded that workers in both nations would ultimately suffer while only the extremely wealthy benefit from such competition. “I’m not interested in a race to the bottom,” he added.
