Tom Steyer’s AI-Tax Job Guarantee Plan for California

Hedge-fund founder and gubernatorial candidate Tom Steyer announced a Golden State Sovereign Wealth Fund financed by a “token tax” on AI data processing. The tax would charge big-tech firms a fraction of a cent per data unit. Revenues would fund guaranteed jobs for workers displaced by AI, expand unemployment insurance, and create an AI Worker Protection Administration to set worker-rights rules. The memo also pledges training and apprenticeship programs and funding for housing, health-care and energy projects.

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AI-related job cuts have surged. Challenger, Gray, and Christmas reported AI as the leading cause of layoffs for two months, representing 26 % of 88,387 cuts—21,490 workers—in the latest month. A 2023 analysis by Senator Bernie Sanders warned AI and automation could eliminate nearly 100 million jobs worldwide in a decade. President Donald Trump responded with an executive order creating a Department of Justice AI Litigation Task Force to study AI’s employment impact.

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Steyer told WIRED that Californians are terrified that AI will hollow out the economy, and said the fund would make California the first major economy in the world to guarantee jobs to people displaced by AI. He described the token tax as a tool to ensure AI benefits workers rather than replaces them. The memo announced the AI Worker Protection Administration to set worker-rights standards and expanded unemployment insurance and apprenticeships.

Wired Magazine

Republican leaders oppose state-level AI regulation, arguing a token tax could burden tech firms and that the plan lacks detail on implementation and fund size. The Trump administration’s executive order emphasizes litigation over taxation, reflecting reluctance to impose new fiscal measures on the AI sector. Some analysts warn that guaranteeing jobs may create market distortions without addressing productivity shifts.

Common Dreams

• “People all over this state are terrified that AI is going to hollow out this whole economy and they’re going to lose their jobs. Young people are worried they’ll never get a job,” — Tom Steyer, Candidate

Wired Magazine

• “We believe this can be an amazing transformational technology in many ways, but we’re not in the business of leaving people in California behind.” — Tom Steyer

Wired Magazine

• “Not regulating AI doesn’t seem remotely reasonable,” — Tom Steyer

Common Dreams

• “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” — Andy Challenger, Chief Revenue Officer, Challenger, Gray & Christmas

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Steyer will present the AI-tax plan at upcoming debates and seeks voter approval in the November gubernatorial election. If elected, his administration would draft legislation to implement the token tax, create the sovereign wealth fund, and launch the AI Worker Protection Administration within the first year. Ongoing monitoring of AI-related layoffs and federal regulatory developments will shape the program.

Common Dreams