What happened
Sen. Mark Kelly (D‑AZ) introduced a bill on Thursday that would create an “AI Horizon Fund” financed by three new taxes on the largest technology firms: a digital‑advertising revenue tax, an AI‑usage tax based on data generated, and a tax on excess profits earned by AI companies. The bill earmarks an initial $30 billion appropriation, which would be repaid to the Treasury over time, and directs the fund toward grant programs for career pathways that rely on human judgment, entrepreneurship support, and a minimum 75 percent wage‑replacement unemployment benefit for 26 weeks. The legislation, previewed in a floor speech and a plan released last fall, currently has no co‑sponsors. Kelly’s office did not provide estimates of annual revenue from the proposed taxes.
On Thursday, Sen. Mark Kelly introduced a bill that would establish an “AI Horizon Fund” to address workforce disruptions caused by artificial intelligence. The legislation proposes three new taxes targeting the largest technology companies: a digital‑advertising revenue tax, an AI‑usage tax based on data generated, and a tax on excess profits earned by AI firms.
The bill allocates an initial $30 billion appropriation to seed the fund, with the expectation that the Treasury will be repaid over time. The fund’s governance would be overseen by a council of AI experts drawn from labor, higher‑education, and workforce‑development sectors.
Funding would be directed to a grant program that supports paid service‑to‑career pathways for jobs requiring human judgment, trust, and relationship‑based work, as well as entrepreneurship and small‑business initiatives. Additionally, the legislation would raise the minimum unemployment benefit to 75 percent of wages for a 26‑week period.
The bill currently has no co‑sponsors, and Kelly’s office did not disclose projected annual revenue from the new taxes. The proposal follows a similar effort by Sen. Bernie Sanders, who introduced a separate AI tax plan earlier in the year.
Source details: thederrick.com ↗
Why it matters
The proposal marks one of the first major congressional attempts to directly tax AI‑related corporate profits and digital‑advertising revenue to fund workforce resiliency measures. If enacted, the fund could provide substantial resources for retraining workers displaced by automation, a growing concern highlighted by a recent Gallup poll showing 27 % of workers fearing job loss due to technology. By linking AI‑driven corporate gains to public‑benefit programs, the bill also signals a shift toward a more interventionist policy stance on emerging technologies, potentially influencing future legislative approaches to , economic security, and corporate responsibility. However, the bill’s lack of co‑sponsors and the uncertainty around projected tax revenues raise questions about its viability and the political appetite for such measures ahead of the 2028 election cycle.
The legislation represents a concrete effort to link AI‑driven corporate profits to public‑benefit programs, addressing concerns about job displacement and economic inequality as AI adoption accelerates.
By targeting digital‑advertising revenue and AI‑related profits, the bill could generate significant new federal revenue streams, potentially reshaping the fiscal approach to emerging technologies.
The proposal underscores a broader political debate within the Democratic Party about how to regulate AI, with implications for upcoming midterm and 2028 presidential elections.
If enacted, the fund could provide substantial resources for retraining workers, supporting small businesses, and extending unemployment benefits, directly impacting millions of American workers.
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What to watch next
Key indicators to monitor include: (1) acquisition of co‑sponsors or bipartisan support in the Senate and House; (2) Treasury or Congressional Budget Office estimates of revenue from the proposed taxes; (3) reactions from major tech firms likely to be affected, especially those with significant AI and advertising revenues; and (4) any competing AI‑related tax proposals, such as Sen. Bernie Sanders’ one‑time AI company tax, which could shape the legislative landscape. The bill’s progress through committee hearings and potential amendments will also be critical in determining its ultimate impact.
Legislative progress: whether the bill gains co‑sponsors, moves to committee, or receives bipartisan backing.
Revenue estimates: Treasury or CBO analyses of how much money the proposed taxes could generate annually.
Industry response: statements from major tech firms that could be affected by the taxes, which may influence political support.
Competing proposals: the interaction between Kelly’s bill and other AI‑related tax initiatives, such as Sen. Bernie Sanders’ AI company tax, could affect the final shape of AI policy.