AI layoff fears mount as lawmakers weigh a bigger safety net for workers
Wyden proposes expanded support
Sen. Ron Wyden, an Oregon Democrat, joined efforts Friday to protect workers by introducing the Stability and Opportunity for Workers Act. The bill would expand unemployment benefits during periods of high unemployment. It would also offer education and retraining for workers displaced by AI disruption, with the aim of helping them move into higher-paying jobs, Wyden’s office said.
AI job concerns persist
Microsoft co-founder Bill Gates has warned in a recent essay that AI could put millions of jobs at risk. Those projected losses have not yet materialized, economists say. Although some layoffs have been linked to AI, most have been concentrated in the technology industry.
Proposals would tax AI
A bill introduced last month by Sen. Mark Kelly, an Arizona Democrat, would establish three excise taxes on the AI industry. They include a 5% tax on digital advertising revenue, an AI usage tax and a 50% tax on excess profits. Revenue would go into a fund that could support retraining for displaced workers, among other uses.
Other plans link taxes to jobs
A House version was introduced in July by Democratic Reps. Steven Horsford of Nevada and Sara Jacobs of California, along with James Moylan, Guam’s delegate to the House.
Key points
- Wyden’s bill would expand unemployment benefits during high unemployment and fund education and retraining for displaced workers.
- Economists say AI has not yet caused major workforce displacement; AI-related layoffs have mostly been in tech.
- Mark Kelly’s proposal includes a 5% digital advertising tax and a 50% excess profits tax.
- Other proposals would tax AI companies based on token usage, with rates rising alongside unemployment.