Sen. Adam Schiff (D-Calif.) said artificial intelligence companies should help shoulder the economic costs of AI’s rollout while calling for tax reforms to address America’s growing wealth inequality.
Schiff Calls For AI Companies To Share Costs
On Saturday, Schiff made the remarks in a post on X while discussing how the U.S. should pay for the broader economic effects of AI.
"AI companies shouldn’t be able to push their costs off onto everyday Americans," he said.
He added that the country needs "a truly progressive tax code" that works for ordinary families.
Schiff Blames Tax Code For Wealth Inequality
In a video accompanying the post, Schiff said there were certain costs associated with AI that the industry should help cover.
"There are certainly some things I think it makes sense for the AI industry to pay for," Schiff said, comparing it with the telecommunications industry’s role in the rollout of broadband.
He argued that AI-specific measures would not address the country’s underlying inequality.
"The fundamental problem is we don’t have a progressive tax code," he said.
Schiff said wealth had become heavily concentrated among a small number of families, arguing that the problem "precedes AI."
"That is because our tax system simply is broken," he said. "And we need to fix that."
He also acknowledged that it could become difficult to determine "what’s an AI company, what’s not an AI company" as AI becomes embedded across industries.
AI Raises Job and Wealth Inequality Concerns
Earlier, Bill Gates warned that AI could accelerate job displacement and wealth inequality, putting entry- and mid-level white- and blue-collar jobs at risk. He urged governments to consider policies such as AI and robot taxes.
Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp warned that AI could widen U.S. wealth inequality.
He said top AI leaders could become 10 to 100 times wealthier, creating a growing gap between overall economic gains and extreme wealth.
Nearly 200 economists and technology leaders warned that AI could rapidly transform the economy, raising living standards while causing widespread job displacement.
They urged policymakers to develop safeguards as the technology advances.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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