As AI threatens to displace millions of workers, Washington and Silicon Valley are scrambling for solutions—from taxing AI companies to universal basic income. Here's what's on the table.
The Growing Fear of AI Job Losses
Americans are increasingly worried about AI's impact on their jobs. A recent Economist/YouGov poll found 41% of respondents believe AI will negatively affect the economy, compared to just 17% who see it as positive. Consumer sentiment hit a record low in May 2026, amplifying these concerns.
Politicians Propose Bold Solutions
Sen. Elizabeth Warren (D-Mass.) called for an overhaul of the U.S. tax system, arguing the federal government should tax AI companies to ensure the "winnings from AI benefit all Americans." She proposed taxing data centers, updating corporate taxes, and establishing a wealth tax to fund universal healthcare, education, and unemployment insurance.
Rep. Greg Casar (D-Texas) proposed a "token tax" on AI usage, tying the solution directly to the problem. Under his plan, increased AI-related layoffs would generate more tax revenue for a jobs program.
Sen. Bernie Sanders (I-Vt.) plans to introduce legislation for an AI sovereign wealth fund by taking a 50% stake in leading AI companies. He argues that AI wealth should benefit all humanity, not just tech moguls.
Silicon Valley's Role
OpenAI floated a public wealth fund to give every citizen a stake in AI's economic growth. They also suggested tax code changes to increase reliance on capital-based revenues and explore taxes on automated labor.
California Gov. Gavin Newsom (D) signed an executive order to evaluate policies like temporary subsidized employment, workforce training, and universal basic capital concepts.
Elon Musk has pushed for universal basic income, while Sam Altman recently softened his stance, saying AI is unlikely to lead to a "jobs apocalypse."
Measuring the Impact
So far, AI hasn't caused major labor market shocks, but Tahra Hoops from the Chamber of Progress emphasizes the need for accurate measurement. She points to bipartisan legislation from Sens. Mark Warner and Josh Hawley requiring companies to report AI-related layoffs.
The Bottom Line
With Americans feeling financially unstable, any new technology feels like an attack on their future. Policymakers are throwing ideas at the wall, but evidence-based solutions are crucial.
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