AI Tax and Work Protection Act

This bill would create a yearly federal excise tax on companies that develop, sell access to, or modify large artificial intelligence "foundation models" and earn revenue from them or use them to reduce their workforce. The tax would be the greater of 2 percent of the value of tokens processed or 3 percent of AI service revenue, with higher rates when the unemployment rate is above 5 percent. Research use by governments, colleges, federal research centers, and certain nonprofits would be excluded. Tax money would go to a trust fund that pays for a new Work Protection Administration in the Department of Labor, which would give competitive grants to governments, schools, and nonprofits to hire workers in areas such as child care, education, health, housing, infrastructure, and local news. Grant-funded jobs would have to pay at least the prevailing wage and provide health coverage, paid family leave, and paid sick leave.

Full text and official record on Congress.gov

Sponsors

• Greg Casar Democrat sponsor
• 4 cosponsors