Sen. Bernie Sanders has proposed legislation to establish a U.S. sovereign wealth fund, financed through a one-time 50% tax on stock issued by AI companies. The tax would apply to firms that reach $200 million in annual AI-related sales, according to the Associated Press.
The proposal targets the rapid growth and trillion-dollar valuations of AI companies, arguing that their success should benefit the broader public. Sanders frames the fund as a way to capture value from an industry reshaping the economy, ensuring that windfalls are shared rather than concentrated among executives and investors.
The one-time stock tax would be levied on qualifying AI companies, though details on collection mechanisms and fund management remain scarce. The plan does not specify how the fund's assets would be invested or distributed, leaving key implementation questions unanswered.
If enacted, the legislation would impose a significant cost on AI firms hitting the revenue threshold, potentially altering their capital-raising strategies. It could also spark debate over how governments should tax emerging technologies that generate outsized returns.
The proposal faces steep odds in a divided Congress, where similar wealth fund initiatives have stalled. Critics may argue that a 50% tax could stifle innovation and drive AI companies to relocate operations outside the U.S.