Billionaire and California gubernatorial candidate Tom Steyer has unveiled a sweeping proposal to protect workers from the economic disruptions caused by artificial intelligence. The plan centers on a guaranteed job program for those displaced by automation, funded by a novel “token tax” on big tech companies.
This marks the first time a statewide candidate has made such a specific pledge, positioning California as a potential pioneer in managing the social costs of AI adoption. Steyer argues that without proactive intervention, the technology could “hollow out” the state’s economy, leaving young people and incumbent workers vulnerable to long-term unemployment.
The Mechanics of the Proposal
The core of Steyer’s strategy involves taxing large technology firms a small fraction of a cent for every unit of data processed by AI systems. The revenue generated would flow into a Golden State Sovereign Wealth Fund.
Rather than simply distributing cash, the fund would be strategically invested in public infrastructure projects designed to create new employment opportunities. Key areas for investment include:
- Housing construction to address the state’s chronic shortage.
- Healthcare expansion to improve access and affordability.
- Energy infrastructure modernization to support California’s green goals.
Steyer emphasizes that the initiative is not just about immediate job placement but also about strengthening the state’s economic foundation. The plan includes significant investments in training and apprenticeship programs to help workers transition into these new roles.
Institutional Support and Regulation
Beyond direct job creation, the proposal aims to institutionalize worker protections. Steyer plans to establish the AI Worker Protection Administration, a new agency tasked with creating rules to safeguard labor rights in the age of automation. This body would include union leaders, academics, and technologists, ensuring a multi-stakeholder approach to policy-making.
Additionally, the plan calls for an expansion of unemployment insurance to better support those navigating the transition period. Steyer frames this as a moral imperative: “We’re not in the business of leaving people in California behind.”
A Growing National Debate
Steyer’s announcement arrives amidst a broader national struggle to regulate AI. While federal efforts have been fragmented, states and local governments are beginning to act. For instance, New Jersey Senator Troy Singleton recently introduced legislation requiring companies that replace workers with AI to contribute to a retraining fund. Similarly, several federal proposals are seeking to offer tax credits for companies that provide AI training to existing employees.
Interestingly, the “token tax” concept has gained traction even within the tech industry. Dario Amodei, CEO of Anthropic, previously suggested a similar tax as a “reasonable solution,” despite it being contrary to his company’s direct economic interests. OpenAI has also floated the idea of a public wealth fund, signaling a growing consensus that some form of redistribution may be necessary to mitigate AI’s disruptive potential.
Political Context and Opposition
The proposal stands in contrast to the AI plans of Steyer’s Democratic primary opponent, former Health and Human Services Secretary Xavier Becerra. While Becerra advocates for “workforce investment and transition support,” his plan lacks a specific funding mechanism, relying instead on partnerships with the legislature and industry. Becerra argues that “displacement without support is abandonment,” but stops short of proposing the structural reforms Steyer envisions.
The debate is further complicated by federal pushback. The White House has threatened to withhold federal broadband funding from states that enact “onerous” AI regulations, citing an executive order signed by President Donald Trump. Meanwhile, Silicon Valley-backed super PACs are actively targeting candidates who prioritize AI regulation, such as Manhattan congressional candidate Alex Bores, highlighting the intense financial stakes involved in shaping the future of the technology.
Conclusion
Tom Steyer’s proposal represents a significant shift in the political discourse surrounding AI, moving from abstract regulation to concrete economic intervention. By linking a tax on data processing to direct job creation and worker protection, Steyer offers a model for how states might manage the transition to an automated economy. Whether this approach gains traction will depend on its ability to balance innovation with social stability in one of the world’s most dynamic tech hubs.
