Sponsor
Bernard Sanders
Senator · I-VT
Senator · I-VT
Official title: Amend the Internal Revenue Code of 1986 to impose an excise tax on systemically important AI activity, and for other purposes.
Introduced June 18, 2026 by Bernard Sanders · Last progress June 18, 2026
The bill aims to capture and distribute AI-generated value through a federal sovereign wealth fund and stricter separation rules to curb concentrated AI power and fund public priorities, but it brings substantial fiscal, legal, enforcement, and market-disruption risks that could raise costs, slow innovation, and create governance challenges.
Middle-class families and low-income individuals could receive annual direct payments (up to ~5% of the Fund's average market value), providing a new source of income or social support.
U.S. taxpayers and the public could gain a Treasury-managed sovereign wealth Fund that acquires equity stakes in large AI firms, creating a long-term public financial interest in AI returns and increasing financial inclusion.
The Fund's governance and disclosure requirements could shift corporate behavior toward worker welfare, public safety, fair competition, and environmental sustainability while increasing transparency about voting and conflicts.
Taxpayers, consumers, and businesses could face new or redirected taxes, excise levies, fees, or higher costs to seed and operate the Fund, with firms potentially passing costs to customers.
Designing and enforcing which AI outputs or companies must contribute to the Fund risks substantial legal and administrative complexity, litigation over intellectual property and compensation, and regulatory uncertainty for firms.
Forcing affected AI companies to divest or restructure quickly (90 days) can impose large compliance and transaction costs, disrupt integrated products and services, and raise prices or reduce convenience for customers.
Based on analysis of 4 sections of legislative text.
Creates an excise tax on systemically important AI firms, forms an American A.I. Sovereign Wealth Fund for collected equity, mandates 5% annual distributable payments, and forces structural separation of covered firms.
Creates a federal excise-tax framework targeting “systemically important AI companies,” deposits tax-collected equity and income into a newly created American A.I. Sovereign Wealth Fund in the U.S. Treasury, and directs annual distributions equal to 5% of the Fund’s average market value to support direct payments to U.S. residents and social programs. Requires covered AI firms to adopt a narrow “structural separation” corporate structure and gives the Federal Trade Commission authority to enforce separation on a 90‑day timetable for existing and newly qualifying firms.