By Gloria Ogbonna
Congressional Progressive Caucus Chairman Greg Casar (D-TX) is calling for a new federal tax on companies that carry out “AI-driven layoffs,” warning that artificial intelligence could soon eliminate millions of American jobs and dramatically reshape the nation’s workforce.
In a guest opinion piece published by the American Prospect, Casar argued that lawmakers must act quickly to prepare for what he described as a rapidly approaching employment crisis fueled by the rise of artificial intelligence technologies. According to the Texas Democrat, many leaders in the AI industry already acknowledge that automation will significantly reduce the need for human workers in the coming years.
Casar pointed to comments from prominent AI entrepreneur and researcher Dario Amodei, who has predicted that unemployment levels in the United States could climb to rates comparable to those seen during the Great Depression within the next five years. He also referenced remarks from Microsoft co-founder Bill Gates, who recently suggested that advances in AI may eventually make human labor unnecessary “for most things” within the next decade.
“Most people involved in artificial intelligence can agree on one thing: AI is coming for your job,” Casar wrote.
The congressman claimed that corporations are already beginning to use artificial intelligence as justification for cutting jobs and reducing labor costs. He highlighted recent layoffs at financial software company Intuit, which reportedly eliminated thousands of positions while increasing its investments in AI technology.
“Corporate leaders say AI-driven layoffs are already starting,” Casar wrote. “Businesses justify their huge investments in AI by committing to spending less on labor, and AI firms sell their products promising to help them do it.”
Casar argued that regardless of whether AI is currently advanced enough to fully replace workers, corporate leaders are clearly preparing for a future where automation dramatically shrinks the workforce.
“Their plan is clear,” he continued. “Lay off millions of workers, justified by AI.”
According to Casar, the federal government has failed to adequately recognize the seriousness of the issue. He criticized Congress for focusing more on promoting AI development than on protecting workers who could lose their livelihoods due to technological disruption.
The Progressive Caucus chairman also took aim at Republican lawmakers and their efforts to formalize President Donald Trump’s national AI framework. Casar claimed that the only major AI-related proposal advanced in Congress so far was an unsuccessful attempt to block individual states from creating their own regulations for the rapidly growing industry.
As part of his proposed solution, Casar called for the creation of a new AI tax specifically targeting companies that profit from replacing human employees with artificial intelligence systems. He said the tax revenue could then be used to fund a large-scale federal jobs initiative modeled after President Franklin D. Roosevelt’s Works Progress Administration (WPA), a New Deal-era program launched during the Great Depression to create employment opportunities for millions of Americans.
The WPA famously employed workers to build roads, schools, bridges, parks, and public infrastructure projects across the country during one of the darkest economic periods in American history.
Casar said Congress should not wait until mass unemployment becomes a reality before taking action.
“Congress should act now, and not wait to see if the worst-case scenario arrives,” he wrote.
He also warned that major AI companies are already spending enormous amounts of money to influence elections and shape future regulations surrounding artificial intelligence.
“AI companies are already pouring hundreds of millions of dollars into elections to try to shape what regulations get considered,” Casar stated. “We cannot wait for these companies to become even wealthier and more powerful.”
Addressing concerns that taxing AI-related layoffs could weaken America’s ability to compete with China in the global technology race, Casar dismissed the argument and said he does not support an economic system where ordinary workers suffer while only the wealthy benefit from automation.
“I’m not interested in a race to the bottom,” Casar wrote, “where workers in both countries end up victims of a competition where only the very wealthy actually win.”
The debate over artificial intelligence and its impact on jobs continues to intensify as companies across multiple industries rapidly adopt automation tools, raising growing concerns among lawmakers, economists, and labor advocates about the future of work in America.
Source Breitbart
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