A Policy Proposal & Economic Model

The FAIR AI Act

Federal Automatic Income Replacement
for the Age of Artificial Intelligence

AI will displace millions of workers. Tax revenues will collapse. The math is straightforward — and so is the solution. A dynamic, formula-based tax that adjusts automatically as displacement grows.

The Fiscal Math

Three scenarios, one question

What tax rate on AI company revenue is needed to fund displaced workers and replace lost tax revenue?

Early Displacement
10% white-collar, 5% blue-collar
12.8M workers displaced
~36%
tax rate on $2T AI revenue
Moderate Displacement
30% white-collar, 15% blue-collar
38.4M workers displaced
~107%
tax rate on $2T AI revenue
Deep Displacement
50% white-collar, 30% blue-collar
67.2M workers displaced
~187%
tax rate on $2T AI revenue

The numbers shift dramatically with AI revenue growth, UBI levels, and value capture assumptions.

Explore your own scenario with the interactive model.

Open the Model
Key Findings

What the model reveals

01

The early stages are manageable

At 10–15% displacement, required tax rates are in the range of existing corporate tax burdens. This is the window to act.

02

Lost tax revenue > UBI cost

The collapse of the income tax base — funding Social Security, Medicare, defense — is often a larger fiscal hole than UBI payments.

03

AI company tax alone won't scale

At high displacement, the tax base must expand beyond AI companies to all businesses benefiting from AI productivity gains.

A Call to Candidates

The FAIR AI Pledge

“I pledge to support the development and passage of the FAIR AI Act — a Federal Automatic Income Replacement framework that dynamically adjusts to protect American workers, preserve federal solvency, and ensure that the economic benefits of artificial intelligence are shared broadly across society. I commit to working across party lines to enact this legislation before displacement demands it, not after.”

We call on every candidate for federal office — in 2026 and beyond, in every party and every district — to take this pledge.

This is not about being for or against AI.
It is about being prepared.