Institute on Taxation and Economic Policy (ITEP)

AI

brief  

How Federal Tax Policy Can Address AI

August 10, 2026 • By Steve Wamhoff, Joe Hughes, Erika Frankel

How Federal Tax Policy Can Address AI

Congress could use its taxing power to ensure a fairer distribution of the fruits of labor, innovation and investment, address the specific harms (the negative externalities) of AI specifically, and acquire a public stake in the companies that are driving the AI revolution.