Democratic Rep. Greg Casar, chair of the Congressional Progressive Caucus, has proposed taxing the artificial-intelligence "tokens" that power tools like ChatGPT, framing the levy as a way to slow AI-driven layoffs and finance a New Deal-style jobs program.
Tech & Labor Policy · Congressional Progressive Caucus
Tax the Tokens: A Progressive Plan to Slow AI Layoffs
Rep. Greg Casar proposes a "modest AI token tax" on providers like OpenAI and Anthropic — funneling the proceeds into a New Deal–style jobs and retraining program.
Tokens + compute
Both measured together — a design meant to make the levy harder to game
1930s
WPA-style jobs program as the funding target for revenue raised
$0
Rate, collection mechanism & bill text — still unpublished
Who pays — and how much
Levied on AI providers, not consumers, with rates scaled to the size of use.
Lower rate
Individual users
Higher rate
Large-scale corporate use
The core logic
Today's tax code rewards replacing workers with machines. Casar wants to flip that incentive.
Payroll → taxed
Automation → deductible
Rate → adjustable
Supporters say
A needed tool to protect workers as AI adoption accelerates
Funds retraining and direct job creation
Could raise substantial revenue even at low rates
Critics warn
Could erode U.S. competitiveness vs. Chinese developers
Tracking usage raises privacy and surveillance concerns
May unfairly burden open-source and locally run models
Still conceptual. With no published rate, collection mechanism, or bill text, the practical impact is hard to assess — but the proposal moves AI's labor-market effects from abstract debate into legislative territory.
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