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Senator Sanders Proposes 50% Equity Tax on AI Firms to Fund $1,000 Annual Dividend for Every U.S. Citizen
On Thursday, Senator Bernie Sanders unveiled a proposal that would levy a one‑time 50 % equity tax on any artificial‑intelligence (AI) company whose annual AI sales reach $200 million. The tax would be paid in shares and would create a sovereign‑wealth‑style fund that, according to the senator’s estimates, could grow to roughly $7 trillion. The fund would then distribute a dividend of about $1,000 to each American resident every year.
Dubbed the American AI Sovereign Wealth Fund Act, the measure would also apply to data‑center operators, AI‑infrastructure providers and firms involved in AI token sales. A seven‑member independent panel would manage the fund and sit on the boards of the companies that contribute shares. New AI firms would be added to the tax base once they hit the $200 million threshold.
Sanders said the measure is intended to prevent the concentration of AI wealth in a handful of corporations. "The benefits cannot simply go to the handful of wealthy corporations," he told reporters, according to the Associated Press. The proposal is a long shot in a Republican‑heavy Congress, but it shares a theme with a suggestion that former President Trump has floated – the idea that the government could take stakes in top AI companies.
OpenAI and Anthropic have each presented their own versions of public ownership, while other tech giants have publicly rejected the idea. Former Trump tech adviser David Sacks has described Sanders’ approach as "confiscation," but said he is open to voluntary models.
The proposal comes amid growing public unease about AI’s rapid growth. A recent poll shows that many Americans are skeptical that either government or industry can effectively regulate the technology.
The plan’s mechanics are straightforward. When an AI company meets the sales threshold, the government would receive 50 % of its outstanding shares. Those shares would be held in a federal fund that would invest in a diversified portfolio. The fund would then pay out a dividend to every U.S. citizen, modeled after the Alaska Permanent Fund’s annual payments to residents.
According to the Washington Post, the fund’s estimated value of $7 trillion would be nearly seven times larger than Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund. The senator’s calculations assume a 5 % annual dividend yield, which would translate into more than $1,000 per person.
The proposal has sparked debate among policymakers, industry leaders and academics. Critics argue that a forced equity transfer would undermine investor confidence and could stifle innovation. Proponents point to the potential for a universal dividend to reduce income inequality and provide a safety net in an economy increasingly driven by AI.
The idea of an AI dividend is not new. Several countries, including South Korea, have discussed similar concepts, and some U.S. lawmakers have explored the possibility of a federal AI dividend. However, Sanders’ proposal is the most detailed and ambitious version to date.
The bill would also require the federal government to appoint representatives to the boards of the contributing companies. This provision is intended to give the fund oversight and influence over corporate governance, but it has raised concerns about potential conflicts of interest and regulatory capture.
At a press conference, Sanders said the plan would be a step toward a more equitable distribution of AI’s economic benefits. He also noted that the proposal would not affect companies that have not yet reached the sales threshold.
The bill has not yet been introduced to the Senate floor. If it were to advance, it would face significant hurdles in a chamber dominated by Republicans. Nonetheless, the proposal has already entered the public conversation and may influence future discussions about AI policy, taxation and wealth distribution.
In the coming months, observers will watch how the proposal is received by lawmakers, AI firms and the public. The outcome could shape the trajectory of AI regulation and the broader debate over how to share the technology’s gains.
The next steps for the proposal will depend on congressional scheduling, potential amendments and the political climate. Whether the plan will ultimately move beyond the Senate floor remains uncertain, but it has already highlighted the growing concern over AI’s economic impact and the search for mechanisms to redistribute its benefits.
Dubbed the American AI Sovereign Wealth Fund Act, the measure would also apply to data‑center operators, AI‑infrastructure providers and firms involved in AI token sales. A seven‑member independent panel would manage the fund and sit on the boards of the companies that contribute shares. New AI firms would be added to the tax base once they hit the $200 million threshold.
Sanders said the measure is intended to prevent the concentration of AI wealth in a handful of corporations. "The benefits cannot simply go to the handful of wealthy corporations," he told reporters, according to the Associated Press. The proposal is a long shot in a Republican‑heavy Congress, but it shares a theme with a suggestion that former President Trump has floated – the idea that the government could take stakes in top AI companies.
OpenAI and Anthropic have each presented their own versions of public ownership, while other tech giants have publicly rejected the idea. Former Trump tech adviser David Sacks has described Sanders’ approach as "confiscation," but said he is open to voluntary models.
The proposal comes amid growing public unease about AI’s rapid growth. A recent poll shows that many Americans are skeptical that either government or industry can effectively regulate the technology.
The plan’s mechanics are straightforward. When an AI company meets the sales threshold, the government would receive 50 % of its outstanding shares. Those shares would be held in a federal fund that would invest in a diversified portfolio. The fund would then pay out a dividend to every U.S. citizen, modeled after the Alaska Permanent Fund’s annual payments to residents.
According to the Washington Post, the fund’s estimated value of $7 trillion would be nearly seven times larger than Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund. The senator’s calculations assume a 5 % annual dividend yield, which would translate into more than $1,000 per person.
The proposal has sparked debate among policymakers, industry leaders and academics. Critics argue that a forced equity transfer would undermine investor confidence and could stifle innovation. Proponents point to the potential for a universal dividend to reduce income inequality and provide a safety net in an economy increasingly driven by AI.
The idea of an AI dividend is not new. Several countries, including South Korea, have discussed similar concepts, and some U.S. lawmakers have explored the possibility of a federal AI dividend. However, Sanders’ proposal is the most detailed and ambitious version to date.
The bill would also require the federal government to appoint representatives to the boards of the contributing companies. This provision is intended to give the fund oversight and influence over corporate governance, but it has raised concerns about potential conflicts of interest and regulatory capture.
At a press conference, Sanders said the plan would be a step toward a more equitable distribution of AI’s economic benefits. He also noted that the proposal would not affect companies that have not yet reached the sales threshold.
The bill has not yet been introduced to the Senate floor. If it were to advance, it would face significant hurdles in a chamber dominated by Republicans. Nonetheless, the proposal has already entered the public conversation and may influence future discussions about AI policy, taxation and wealth distribution.
In the coming months, observers will watch how the proposal is received by lawmakers, AI firms and the public. The outcome could shape the trajectory of AI regulation and the broader debate over how to share the technology’s gains.
The next steps for the proposal will depend on congressional scheduling, potential amendments and the political climate. Whether the plan will ultimately move beyond the Senate floor remains uncertain, but it has already highlighted the growing concern over AI’s economic impact and the search for mechanisms to redistribute its benefits.
