Key Takeaways:
Sen. Bernie Sanders will introduce legislation Thursday imposing a one-time 50% equity tax on the largest US AI companies to create a $7 trillion sovereign wealth fund.
Sen. Bernie Sanders will propose a one-time 50% equity tax on the largest US artificial intelligence companies Thursday, redirecting an estimated $7 trillion in stock to a sovereign wealth fund that would pay annual dividends exceeding $1,000 per American.
"The benefits cannot simply go to the handful of wealthy corporations. They will be shared by the American people," Sanders, an independent from Vermont, said in an interview Wednesday.
The legislation, obtained by the Associated Press before its formal introduction, would apply to AI companies with at least $200 million in annual AI revenue. Unlike a traditional tax, the proposal requires companies to transfer stock rather than cash, making the US public a major shareholder. A seven-person independent commission — nominated by the president and confirmed by the Senate — would manage the fund and use its voting shares to block decisions that harm the public interest, according to a bill summary.
The proposal represents the most aggressive attempt yet to redistribute the wealth generated by the AI boom, going far beyond similar ideas floated by President Donald Trump and OpenAI CEO Sam Altman. If enacted, it would fundamentally alter the ownership structure of the world's most valuable technology companies and give the federal government direct influence over corporate decision-making.
How the fund would work
The 50% tax would apply to any AI company that reaches $200 million in annual AI sales, including new entrants that hit that benchmark. Sanders estimates the resulting sovereign wealth fund — modeled after similar vehicles used by countries such as Norway and the US state of Alaska — would be worth roughly $7 trillion. A 5% annual dividend from the fund would provide direct payments exceeding $1,000 to every American, with additional gains directed toward education, housing and health care.
Sanders argued taxpayers would not bear losses if AI company valuations decline. "We're not going to lose any money, even if there is a bust in the bubble," he said.
The independent commission would hold voting shares giving it the power to block corporate decisions that hurt the American people and push for policies that help them, according to the bill summary. Sanders acknowledged the proposal is a starting point, calling it "a major, major, major step forward from giving unilateral and total power to a handful of multi-billionaires."
Unlikely allies in the White House and Silicon Valley
The idea of giving the public a stake in AI has drawn interest from ideologically diverse figures. Trump, who recently signed an executive order for voluntary government vetting of new AI models, has mused about the government owning a stake, saying "it almost becomes a partnership with the American public." OpenAI in April proposed creating a public wealth fund providing every citizen a stake in AI-driven growth. Anthropic, valued at $965 billion, has been open to similar ideas, with CEO Dario Amodei suggesting universal basic income could be financed through taxes on AI companies.
Still, Sanders' push is far more aggressive. In a meeting with Altman, the two remained far apart on the size of the public stake. "I think people like Sam Altman and Trump who may be sympathetic to this are saying: 'Okay, look, we're making zillions of dollars so we're going to be nice guys and maybe we'll buy off the public. We will give 5% of our profits back into the government,'" Sanders said. "That's not what we're talking about."
Political momentum ahead of the midterms
Sanders plans to make AI ownership and wealth inequality central to his "Fighting Oligarchy" tour, which drew massive crowds last year alongside Representative Alexandria Ocasio-Cortez. Other candidates are tapping into voter anxiety about the technology. Michigan Democratic Senate candidate Mallory McMorrow unveiled a plan to protect workers in the age of AI, while New York Democratic House candidate Alex Bores has made AI regulation a campaign issue.
Data center projects across the country have drawn opposition from residents concerned about electricity demand and water consumption. States including Ohio and Virginia have moved to reconsider tax incentives for the facilities. On college campuses, about 70% of students see AI as a threat to their job prospects, according to a 2025 poll by the Institute of Politics at the Harvard Kennedy School.
"Workers will be thrown out of their jobs while billionaires, multi-billionaires become even richer," Sanders said. "The American people are aware of that and don't want to see it happen."
The bill faces significant uncertainty in Congress, where AI companies wield substantial political influence through campaign spending. Sanders acknowledged that industry lobbying has been a primary obstacle to previous regulatory efforts, though he expressed confidence the proposal has bipartisan support among lawmakers.
This article is for informational purposes only and does not constitute investment advice.
