Hard hats over hard tech: Sanders proposes robot tax as AI threatens 100M US jobs

Bernie Sanders has proposed a “robot tax” on corporations to address potential job displacement from AI automation, warning that artificial intelligence could eliminate nearly 100 million US jobs within a decade. The Vermont senator’s plan would redistribute wealth created by AI technologies back to affected workers, addressing what he sees as a growing productivity-wage gap that has left American workers behind despite massive corporate profit increases.

What you should know: Sanders’ report outlines a dire scenario where AI automation could devastate employment while corporations pocket the benefits.

• The report warns that “AI and automation could destroy nearly 100 million US jobs in a decade” without proper policy interventions.
• Since 1973, productivity has risen 150% and corporate profits have increased over 370%, yet real wages have dropped by nearly $30 per week for average workers.
• A fair minimum wage based on current productivity levels would be around $25 per hour—over three times the current federal minimum of $7.25.

How the robot tax would work: The proposal functions as a direct excise tax on automation technology, creating a targeted form of universal basic income.

• Large corporations would pay taxes specifically on AI and robotic technologies that replace human workers.
• Revenue would be redistributed directly to workers whose jobs are eliminated by automation.
• “If workers are going to be replaced by robots, as will be the case in many industries, we’re going to need to adapt tax and regulatory policies to assure that the change does not simply become an excuse for race-to-the-bottom profiteering by multinational corporations,” Sanders wrote in his 2023 book.

The bigger economic picture: Corporate executives are increasingly open about using AI to reduce workforce costs and push remaining workers harder.

• The productivity-wage gap has existed for decades, with corporations suppressing worker pay while pocketing productivity gains.
• AI automation threatens to accelerate this trend, giving companies new tools to eliminate jobs while concentrating wealth at the top.

Why experts are skeptical: The proposal faces questions about both its necessity and scope.

• AI is currently failing to generate revenue at 95% of firms that implement it, suggesting the automation threat may be overstated.
• Even Bill Gates, Microsoft’s co-founder, supports similar robot tax ideas, indicating Sanders’ proposal may be more mainstream than transformative.
• Critics argue that without broader protections like rent controls and workplace democracy, any universal basic income system could become “state-backed poverty” rather than genuine economic security.