A Senate Democrat wants a new “robot” tax to discourage companies from artificial intelligence-related layoffs and new levies on data centers central to funding a plan to boost and protect workers.
Sen. Ruben Gallego (D-Ariz.)’s New Deal-style plan would boost the minimum wage to $20 per hour from $7.25, provide public jobs for workers displaced by AI, and steer trade policy away from what he called the “reckless” policies under President Donald Trump. Funded by the new taxes on the sector, Gallego said his plan would bring stability to middle-income American workers, who are struggling to navigate nascent AI-caused workforce disruptions.
Gallego’s economic plan represents a plank in what could become part of a presidential bid in 2028 if he decides to run, something he’s said publicly that he’s considering.
“Workers need higher wages, more career advancement opportunities, and more stability,” Gallego said in his proposal. “Workplace technology should help workers be more productive and earn more, not automate their jobs away.”
Gallego’s plan would be funded by a so-called “robot” tax to discourage job dislocation and maintain company payroll contributions for jobs that have been outsourced to AI. It also calls for imposing a 10% data center excise tax while taking away bonus depreciation and deductions for state and local taxes.
Democrats have rolled out several tax proposals on data centers and AI usage, seizing on voter worries over the technology’s potential impact to workers. Democrats also slammed tech giants who used breaks from last year’s GOP tax law to subsidize spending on build-outs and save billions.