New York politician proposes AI Dividend funded by token tax and equity stakes; economist argues it premature amid unproven labor disruption

Alex Bores, a New York State Assembly member and Democrat, proposed the AI Dividend: direct payments to Americans funded through a token tax on AI usage and government equity stakes in frontier AI firms, designed to automatically trigger on clear economic indicators. The program would also invest in workforce transition and public capacity to govern AI safely.

Ryan Bourne of the Cato Institute argues the proposal is premature, citing that Anthropic's early labor-market evidence shows no increase in unemployment in the most AI-exposed occupations, though slower hiring for younger workers exists, while overall US unemployment remains at 4.3%. Even $1,000 monthly payments to every American would cost $3.7 trillion annually — 50% of today's federal budget.

Bores contends the current tax code rewards companies for replacing workers by subsidizing AI investment while taxing displaced workers' wages, and argues the government must act now as an 'insurance policy' before a handful of companies capture significant economic value from AI-driven disruption.