Sen. Elizabeth Warren (D-Mass.) is calling for new taxes on artificial intelligence (AI), warning that rapid automation could deepen inequality, displace workers and concentrate wealth among tech elites.
AI And Inequality Warning
In a TIME article published Wednesday, Warren argued that AI is accelerating an economy that already favors the wealthy.
She warned of a future in which technology could create a “permanent underclass” and “break society” through extreme wealth concentration.
“Americans are hanging on by their fingernails,” she wrote, saying AI is already producing tech billionaires while workers face layoffs tied to automation.
Job Losses, Economic Strain
Warren said Big Tech leaders themselves have warned AI could automate large portions of white-collar work
She noted that job losses could have ripple effects, particularly in the U.S., where health insurance is often tied to employment.
She also pointed to concerns that AI-driven investment hype could create a financial bubble and increase systemic risk.
‘Tax AI And Invest In People’ Proposal
Warren’s central proposal is to “tax AI and invest in people.” She argued the tax code should be restructured so corporations do not get incentives to replace workers with machines.
“It’s time to tax AI,” she wrote, calling for higher corporate taxes, tighter loopholes and stronger minimum taxes on large firms.
She also proposed taxing AI infrastructure, including data centers, which she said are driving up electricity costs for nearby communities.
She further argued for a wealth tax on billionaires, saying many AI-driven fortunes grow through stock valuations rather than wages and are taxed at lower rates than workers.
Backlash Grows Over AI Protests
Earlier this week, former Rep. Marjorie Taylor Greene (R-Ga.) criticized federal authorities.
Her criticism came after a report indicated that U.S. intelligence and law enforcement agencies are expanding surveillance of anti-AI activists, data center protesters and technology critics as part of a broader focus on “anti-tech extremism.”
On Monday, investor and television personality Kevin O’Leary said his team spent months investigating what he described as a coordinated online campaign aimed at disrupting energy infrastructure and blocking AI data center development across North America.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: OogImages/Shutterstock
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