Steve Moore, co-founder of Unleash Prosperity, discusses Sen. Elizabeth Warren’s (Massachusetts) call to tax artificial intelligence in “The Bottom Line.”
Sen. Elizabeth Warren, D-Mass., advocates targeting the artificial intelligence industry with tax dollars.
“It’s time to tax AI and invest in talent,” the left-wing lawmaker argued.
She has suggested the possibility of taxing the energy consumed by AI data centers.
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Sen. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing, and Urban Affairs Committee, speaks during a hearing in Washington, D.C., Thursday, February 5, 2026. (Kent Nishimura/Bloomberg via Getty Images/Getty Images)
“Rethinking our tax code must also include going to the source, which means taxing AI companies directly, and we can start by taxing AI data centers,” he said in an opinion piece published in Time. “A reasonable excise tax on the energy used in data centers would allow families to recoup some of the benefits of AI while keeping the United States competitive in the AI race. A well-designed tax would focus on companies that can afford to pay it and can scale to match the impact of AI. In other words, the larger the data center, the more tax it will pay.”
“We will not be afraid to consider even bigger, bolder proposals to tax AI as well, including ideas that sound radical today but could soon become common sense,” she argued in the article.
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The senator argued that the tax system encourages the replacement of workers with AI.
“Currently, businesses pay payroll taxes on their employees, but they get tax breaks on technology investments. In effect, they get a tax break for hiring people and a tax break for buying equipment. In the world of AI, this means our tax code is incentivizing companies to lay off employees and replace them with AI. That’s wrong. We need to level the playing field by raising corporate taxes and taxes on capital gains and closing corporate loopholes,” she wrote.
Warren also called for a “wealth tax” on the wealthy.
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Sen. Elizabeth Warren (D-Mass.) speaks at the Borrowers, Not Billionaires rally to protect the Consumer Financial Protection Bureau (CFPB) held at the Capitol in Washington, DC, on February 9, 2026. (Countess Jemal/Getty Images for Protecting Borrowers/Getty Images)
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“AI billionaires are implementing the same strategy: get rich with huge stock valuations and avoid paying the taxes you would have to pay if those funds were earned in payroll. If it wasn’t clear before, there is no question in the world of AI: We need a wealth tax,” she argued in Time magazine.
