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Bernie Sanders Unveils $7 Trillion Plan To Give Americans Control of AI Industry (apnews.com) 195

An anonymous reader quotes a report from the Associated Press: As artificial intelligence companies reshape the economy and race toward trillion-dollar valuations, Sen. Bernie Sanders is proposing a sweeping transfer of wealth and power from the industry to the American public. The legislation, shown first to The Associated Press, would create a sovereign wealth fund overseen by an independent commission and financed through a one-time 50% tax on the stock of the largest AI companies. Sanders estimates that the tax would create a nearly $7 trillion fund that would generate hundreds of billions of dollars annually in direct payments to Americans and programs such as health care, education and housing.

[...] The 50% tax would apply to AI companies that reach $200 million in annual AI sales. Any new AI company that reaches that benchmark would also be subject to the tax. It would create a sovereign wealth fund -- similar to those used by countries around the world and some U.S. states -- that Sanders estimates would be worth around $7 trillion. Unlike a traditional tax, the proposal would require companies to transfer stock rather than cash, effectively making the American public a major shareholder in the country's largest AI firms.

A seven-person independent commission -- nominated by the president and confirmed by the Senate -- would manage the fund and use its voting shares "to block decisions that hurt the American people and to push for policies that help them," the bill summary says. Sanders proposes that a 5% annual dividend from the fund would provide direct payments of more than $1,000 to every American. If companies grow, the gains would be used for public goods such as education, housing and health care. Sanders argues taxpayers would not bear the losses if AI company valuations decline. "We're not going to lose any money, even if there is a bust in the bubble," Sanders said. The commission would be directed to "to block decisions that hurt the American people and to push for policies that help them," according to the summary.
"The benefits cannot simply go to the handful of wealthy corporations. They will be shared by the American people," the independent Vermont senator said in an interview Wednesday. "The public has got to have a significant seat at the table to make sure that terrible things do not happen to ordinary people, and that in fact, AI benefits ordinary people, not hurts them," Sanders said.
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Bernie Sanders Unveils $7 Trillion Plan To Give Americans Control of AI Industry

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  • Thinking Too Small (Score:2, Insightful)

    by mkoenecke ( 249261 )
    Why just limit it to AI companies? Why not just levy the tax on every American company that makes, oh, say $100 million or more, or perhaps less, so that the people will have a say in everything? What could possibly go wrong?
    • by dfghjk ( 711126 ) on Thursday June 18, 2026 @04:25PM (#66199098)

      It's a really good question, with probably some answers. Given that AI promises that companies can thrive using AI with less human labor, it seems directly relevant to Bernie's goal as well.

    • Re: (Score:3, Insightful)

      by Fly Swatter ( 30498 )
      This. Corporations currently have too much power while having no responsibility. In return for corporate protections the citizens granting them those protections should be half owner. AI is just the latest straw in the corporate-behavior-run-amok.
      • by AvitarX ( 172628 ) <me AT brandywinehundred DOT org> on Thursday June 18, 2026 @04:34PM (#66199132) Journal

        I'd like to see corporations able to be tried as people. 5 year jail sentence = 5 year government ownership.

        • by AmiMoJo ( 196126 )

          In Japan they can temporarily suspend business operations for corporations found guilty of crimes. Staff must still be paid, but they can't do any work. It's an interesting sanction because it obviously hurts financially, but it also makes it very clear to every other company doing business with them that they did wrong, and gives competitors an opportunity.

      • In return for those protections, the corporations and people who comprise them pay taxes. That's how that works. What you're describing is a system that has produced nearly every genocide in the 20th and 21st centuries, as well as mass suffering and general slaughter. Stalin, Hitler, Mao, Pol Pot, the Kim's, Castro, Guevara - all murdering, power mad monsters. And, Socialists.
    • Tie it to GDP and use it to make sure no companies get too big to fail so we don't need to socialize the risk. It'll also assure that there's competition.

      I think we're both somewhat sarcastic, but there is a certain beauty to using it as a way to foster competition and reduce the need for bail outs.

    • by mpercy ( 1085347 )

      Corporations basically don't pay taxes, even if they look like they are.

      The CBO produced a report "THE INCIDENCE OF THE CORPORATE INCOME TAX" in which it states "A corporation may write its check to the Internal Revenue Service for payment of the corporate income tax, but that money must come from somewhere: from reduced returns to investors in the company, lower wages to its workers, or higher prices that consumers pay for the products the company produces."

      And it goes on to say

      "Although economists are far

      • by dgatwood ( 11270 )

        Yeah, this can't work for all the reasons listed.

        It's also not clear how you would even do something like that for a company like Google, where more than half the voting rights are controlled by the founders. Even if the company acquired every share that anyone puts on the market and gave them to the government, they can't compel individuals to sell their shares, so the government would never achieve a controlling interest.

        And trying to do so such a mass acquisition would cause total chaos in the stock ma

        • Even if the company acquired every share that anyone puts on the market and gave them to the government, they can't compel individuals to sell their shares, so the government would never achieve a controlling interest.

          From the text of the actual bill [senate.gov]: "In any case in which an applicable AI company issues equity interests ...." So the 50% share seems to apply only to new issuance of stock, not stock previously issued or already owned.

          • by dgatwood ( 11270 )

            Even if the company acquired every share that anyone puts on the market and gave them to the government, they can't compel individuals to sell their shares, so the government would never achieve a controlling interest.

            From the text of the actual bill [senate.gov]: "In any case in which an applicable AI company issues equity interests ...." So the 50% share seems to apply only to new issuance of stock, not stock previously issued or already owned.

            From section B, existing companies appear to be required to immediately issue new stock such that the government owns half. Basically, at some magic threshold, you have to give half the company away. Seems like a good way to make the stock market crater. Also seems like a good way for AI companies to end up with hundreds of subsidiary companies with their own stock issues to keep the revenue of each individual company under that threshold.

            In short, this is nuts.

    • Because AI companies in theory could replace all workers, in which case some kind of socialism becomes necessary.

      AI isn't capable of replacing all workers currently, but Bernie Sanders isn't a computer scientist.
  • We all get a bill. Noice.
  • This is just more pissing in the wind.

    It's easy to use propaganda and culture wars to get right wing extremists to 45% in any election. From there you've just got to use 7 hour wait times and illegals voter registration/signature challenges to stop 6% from voting and winner take all politics takes care of the rest.
  • Either:

    1. AI is a scam, in which case Bernie is proposing they rob the robbers before the public figures out that they're getting taken. Definitely a heist film.

    2. AI is the real deal, in which case Bernie is skimming 50% off the top as part of their deal to let AI have their way with the American economy. Notice he's not promising that he won't came back later to take another 50% haircut.

    I'm a little weirded out by the fact that you could also just take an non-voting equity stake in these companies, co

    • Nevermind, I was reading the Ars Technica version of the article that leaves out the part where they take stock instead of cash under the 50% haircut, and are proposing to pay dividends based on that fund.

      Strangely enough, I don't have any objections to this plan.

      • by tippen ( 704534 ) on Thursday June 18, 2026 @04:48PM (#66199150)
        You don't have objections to the government straight up confiscating 50% of a corporation? Really? You ok when they come and take 50% of your company?
        • Re: (Score:2, Interesting)

          by silentbozo ( 542534 )

          Dilution is preferable to paying cash taxes on unrealized gains - the other socialist/progressive "solution" to people being successful. And, one would hope that negotiations would get things closer to a reasonable percentage from 50%, like the 10% the US government took in Intel.

          It aligns the interests of the government with the company - you can't pay dividends on a wealth fund based on equity stakes if you take actions (policy or otherwise) that tank the value of the stock.

          If anything, having the govern

        • I don't, because there always have to be exceptions. Companies as destructive as AI companies should be treated separately, just like killers are arrested but that doesn't mean that everyone will be thrown in jail, after all.

      • The explicitly Socialist plan to seize control of private companies in direct violation of the 5th Amendment? The government isn't allowed to do this. If it wants half of these companies, it is required to pay. It can't just pretend this is a tax instead of a taking.
  • Genuine question - I'm not opposed to the idea in principle but I don't know how it would work. I don't really know how sovereign tax funds work, but the press release mentions "natural resources". Ai companies are not a "natural resource" so I don't know how current US tax law would even allow companies to pay with taxes with stock. They aren't even a "natural monopoly" like telephones and utilities used to be, so that argument doesn't really work, but IINAL. It also sounds like it would be easily challen
    • I'm also not opposed to the idea. Not because of a supposed concentration of wealth. Musk does not have a trillion dollars, taken from elsewhere, sitting in a giant warehouse somewhere; it's all stock in a massively overvalued company that he built. His riches do not make us poorer. And I don't envy him his wealth, he's welcome to it.

      What I do have an issue with, is the concentration of power this represents. Wealth, whether in actual dollars, publicly traded stock or private stock, represents an und
    • by Himmy32 ( 650060 )
      Could look at the proposed 5% that California was attempting [wikipedia.org].
    • Any court should see this as a blatant violation of the 5th.

      And the notion of a Sovereign wealth fund in a place that doesn't have a King just seems absurd. It was dumb and impossible when Trump floated the idea, and it's at least as dumb and impossible today.

  • overseen by an independent commission ... A seven-person independent commission -- nominated by the president and confirmed by the Senate -- would manage the fund and use its voting shares ...

    Until a President replaces them with lackeys who'll do his bidding and SCOTUS (again) says it's okay. So far, pretty much the only independent entity (agency, commission, etc...) the Court hasn't waffled on, especially under this administration, is The Federal Reserve.

    Supreme Court Prepares to Dismantle Independent Agencies in Favor of Partisan Chaos [afj.org] (Oct 2025)

    • Exactly. A seven-person commission nominated by the President. What could go wrong there? (The pool of potential nominees would be chosen by Congress, but we've seen how effective Congress is not.)

      To get an idea of how this would work, maybe it would be as successful as the Board of Peace, also chosen by the President. Look at all the great things that Potemkin facade has accomplished.

  • yeah, sure, totally. One time only. uh huh.
    I work public sector. The only thing that scares me more than an unhinged capitalist AI system for profit only is an unhinged AI system built and maintained by government bureaucracy. It will either be totally ineffective, or will murder you and produce documentation in triplicate to be distributed to all departments justifying said murder. Perhaps both?

  • Text of the proposed bill [senate.gov] (an update to the Internal Revenue code).

    AI companies would include any companies "Researching, producing, or manufacturing advanced robotics." Would that include the daVinci surgical robots? What about robots for military purposes?

    "There are authorized to be appropriated from the Fund for each fiscal year amounts equal to 5 percent of the average market value of the Fund for the fiscal year, reduced by the reasonable costs of administering the Fund .... to provide for direct pa

    • by Himmy32 ( 650060 )

      Text from the bill on Robotics:

      ADVANCED ROBOTICS.—The term ‘advanced robotics’ means an automated or semi-automated mechanical system that uses artificial intelligence to perform tasks with partial or full independence from direct human control for commercial or industrial applications.

      Would that include the daVinci surgical robots? What about robots for military purposes?

      Probably not to both, since the daVinci's seem to be human controlled. And then military purposes aren't commercial or industrial applications.

      And where does that 5% come from? Not from sale of stock: "No distribution or amount appropriated from the Fund under this subsection shall require the sale or other disposition of, the equity interests held in the Fund."

      The tax isn't on the company value, but on "aggregate gross receipts". So intention is pretty clearly that the money paid would be from that money coming in.

  • It's hard to imagine what a good idea would be.
    If government is in control, they will cripple or ban its use for anybody who disagrees with the government while developing it into weapons to use against the population.
    If monopolists control it, they will enshittify it like they've done to every other piece of tech.
    Open source and wide availability would be the best, but the least likely.
    There are no good options. It's hard to even figure out which option sucks least.

  • Poor guy reminds me of that goofy uncle in the family who means well, but just has no clue how anything *really* works.

    Historically, I'm not sure there's ever been a situation where some kind of "sovereign fund" was created to collect taxes, where it didn't wind up getting raided or re-purposed in some manner by politicians down the road?

    But even beyond that? There's really zero reason to mandate a huge, 50% tax, on AI companies doing more than X amount of annual revenue. You know what will happen then? It'

    • Correct. Presumably if your investors don't like the idea of getting diluted by uncle sam, they'll cut off sales once you hit 199M a year.

      You'd need to get tangible benefits for letting the government "buy in"... enough that your existing investors and share holding employees would be ok with crossing the 200M cutoff.

      Probably a foreign held corporation in Ireland that owns all the IP and gets paid licensing revenue from all the sub 200M companies will serve as the controlling entity.

      What's odd is you could

  • Imagine the government confiscating $7T. You can only do that 1 or 2 times before all the trillion dollar companies are gone and you are left with everyone else.
  • no public stock, no problem.

  • This proposal doesn't look like a tax but rather like seizure via eminent domain. Taking 50% of someone's property is very close to seizing the property outright. If this were allowed, then the government could seize half of someone's real property without any compensation. I imagine that such a move would be challenged all the way to the Supreme Court.

    • I listened to a radio interview with Bernie... apparently he wants this so that "citizens can block harmful policies". So that probably explains the 50% - they want voting shares in order to control the boards.

      This is a bit more than just taking a stake in companies in order to give taxpayers an opportunity to share in the gains... this is basically nationalization without taking over the entire company.

      So I guess I was wrong about where this was coming from. Too bad, since if the tech bros are right and

  • by WankerWeasel ( 875277 ) on Thursday June 18, 2026 @08:39PM (#66199596)

    Look at these numbers. To pay every American $1,000/yr, we'd need 35,000 companies as big and successful as Anthropic to create that $7 trillion a year for Americans. Oh, and they'd all have to be at least 50% government owned. And then the government would have to keep their hands off the money. Keep dreaming.

    • Anthropic isn't successful
    • by AmiMoJo ( 196126 )

      Your numbers are way off. Anthropic is worth nearly $1t, or rather its stock is. So 50% of that goes to the sovereign wealth fund, $500bn. So it would be 14 Anthropic sized companies to reach $7t, and that's a long term goal, not day one.

      $7 trillion with a 5% return would be about $20k per US citizen.

  • Funny how predictable the responses are here: "That's socialism!" - as if that shuts down the argument.

    I personally am horrified by the idea of socialism, and also capitalism. They are both deeply flawed for different reasons.

    But unfortunately socialism is inevitable. AI is going to eliminate ALL jobs - ALL of them. So a government handout in some manner is inevitable. And that's socialism. We can't avoid it, sign.

    Bernie Sanders is an idiot. But what he proposes (which is not his idea) is probably the best

    • You sound like a typical blowboy for Corporate Socialism. Social Darwinism for the masses, welfare handouts for the corporations.

  • It is your data they took without your consent to make their services profitable, so they probably should compensate you and everyone else you know for the privilege of having done that!
  • Most large corporations hugely benefit from public subsidies of one form or another, it's time for an accounting of that and that should be translated into public equity.

    AI companies in particular are standing on the shoulders of massive public investment in technology and infrastructure, it's time for the public to directly benefit from that investment.

    I'd like to see it more diverse than just AI companies, though.

  • Bernie's ideas, at least the way he articulates them, come across as well intentioned. This is 100% the reason none of them ever come to fruition on the national stage. You can not convince the owner class to penalize the owner class, and that's what it would take to make any of Bernie's ideas stick.

    As much as I don't want to see him give up the fight he tries to put up, what a waste of a life. Always cutting against the grain and getting bucked back into place for it.

    • He's the same kind of con man as Trump.

      He railed against the Banks so when Ron Paul's Audit The Fed bill came to the Senate he cosponsored it.

      Then behind closed doors he killed it to protect the Banks. Same way he endorsed Hillary with zero concessions after she maligned him and stole the primary.

      It's all Kayfabe and he's a multi-millionaire communist for his efforts.

      This proposal is just the latest Theatre Kid stunt to get him some attention. The only kind of attention he deserves is derision.

      You don't eve

  • And this isn't possible. The chances of this plan coming to pass are precisely zero. It's a fantasy. Whether it's actually a good idea or not-- that's completely irrelevant.

    The real-world effect of this proposal is that it makes the Democrats look like a bunch of loopy socialists. Since we're heading into some *very* important and *very* tightly-contested elections, this is a tone-deaf and deeply irresponsible move on Bernie's part. (If it was anyone other than Bernie, I'd suspect that he was a deep-co

  • What would have happened if we did this with the car companies? Or the internet related companies?

    Would be a heck of a model and not sure I would trust it with so much ability to tweak the variables and make it say anything, but have we tried? Even if just in theory?

    I am not opposed to a sovereign wealth fund. That seems to be how countries are going to gain power, influence, and financial stability going forward and I think we need to hop on the bandwagon.

    I also think AI is very unique in its c

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