Rep. Greg Casar proposed tax on artificial intelligence as a way to support workforce

Rep. Greg Casar proposes tax on artificial intelligence as a way to support workforce

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SAN ANTONIO — A San Antonio congressman is proposing a new approach to address concerns about artificial intelligence replacing human workers: taxing the technology and using the revenue to support job creation.

U.S. Rep. Greg Casar recently outlined the idea in an opinion piece, arguing that current tax policies favor automation because wages paid to workers are taxed while AI systems are not.

According to Casar, many AI companies track usage through units known as "tokens," which are used to measure activity and determine what customers are charged. Under his proposal, companies would be taxed based on those AI-generated outputs, with the revenue directed toward programs aimed at creating jobs.

Casar said the concept is inspired by the New Deal policies implemented by Franklin D. Roosevelt during the Great Depression. He argues that advances in artificial intelligence could lead to significant job losses if policymakers do not take action.

Supporters of the idea say it could help offset the economic impacts of automation and provide funding for workforce development.

Critics, however, contend that concerns about widespread AI-driven job losses may be overstated. They argue that taxing AI could slow innovation and hinder growth in a rapidly expanding industry.

At this stage, Casar's proposal is not a formal piece of legislation. Instead, it was presented as part of an op-ed discussing potential policy responses to the rise of artificial intelligence.

The proposal would need to be introduced as a bill and move through Congress before it could become law. For now, it remains part of an ongoing national debate over how AI should be regulated and how its economic impacts should be addressed.