Progressive Caucus Demands AI Tax to Bankroll Jobs Program

Greg Casar, a Democrat from Texas who chairs the Congressional Progressive Caucus, outlined his proposal in a guest column arguing that corporate America is planning to eliminate millions of jobs through AI automation, according to Breitbart News.

The congressman pointed to recent predictions from AI entrepreneur Dario Amodei that unemployment in the United States could reach Great Depression levels within five years, as well as comments from Microsoft co-founder Bill Gates suggesting humans will not be needed for most work within a decade.

Casar cited the recent case of Intuit, which terminated thousands of employees while specifically pointing to artificial intelligence as a justification for the cuts. He argued that technology firms are marketing their AI products by explicitly promising to reduce labor costs for client companies.

Writing in the American Prospect, Casar contended that the federal government appears oblivious to the scale of job displacement ahead, while businesses openly plan to use AI as cover for workforce reductions whether or not the technology can genuinely replace human workers.

The Texas Democrat criticized Republican efforts this Congress to establish a national AI framework under President Donald Trump, characterizing the legislative push as a failed attempt to prevent individual states from regulating the technology sector.

Tax Revenue Would Fund New Works Program

Under Casar’s proposal, the tax would specifically target corporations that stand to generate billions in profits by replacing employees with automated systems. He called for Congress to act immediately rather than waiting to see if dire unemployment forecasts materialize.

The lawmaker advocated using the tax proceeds to fund a modern equivalent of the Works Progress Administration, the New Deal program created under President Franklin D. Roosevelt during the 1930s economic crisis.

Casar warned that AI companies are already spending hundreds of millions of dollars on political campaigns to influence potential regulations, arguing that lawmakers cannot afford to delay action until these firms accumulate even greater wealth and influence.

Dismisses China Competition Concerns

To critics who contend that taxing American AI companies would handicap the United States in its technological competition with China, Casar responded that he has no interest in a race to the bottom where workers in both nations become casualties of a contest benefiting only the wealthy elite.

The proposal represents one of the most aggressive legislative responses yet to concerns about AI-driven unemployment, framing the issue as requiring immediate government intervention through both taxation and direct job creation.

With information from Breitbart News