A Proposal by Anthony S. Owens
The AI Stipend Act
Artificial intelligence is the most powerful wealth-generation engine in human history. It should pay for the people it replaces.
Every day, billions of machine-executed transactions generate enormous value without a single human hand involved. A micro-tax on those transactions, invisible to any individual, would accumulate into a fund large enough to pay every American citizen a monthly stipend. As AI gets more powerful and displaces more workers, the fund grows automatically. The math is not speculative. The infrastructure already exists. What is missing is the political will to build it.
~$10T+
Est. daily machine-executed transaction volume
BIS 2022 - FX, equities, bonds, crypto, payments
0.008%
Proposed starting micro-tax rate
8/1000ths of a cent per $100 transacted
~$292B
Estimated year-one fund at starting rate
$800M/day x 365 days
2035
Target: zero homelessness + functional UBI
Dependent on legislative adoption timeline
Why This Matters Now
The Displacement Is Already Happening.
AI is not a future problem. It is a present one. Standard political responses — retraining programs, expanded safety nets — are designed for a different era and too slow and too small for what is underway.
Labor
White-Collar Work Is Automating Faster Than Blue-Collar Did
Paralegals, radiologists, customer service agents, financial analysts, coders, and accountants are seeing AI handle tasks that took years of training. Unlike factory automation, this wave moves at software speed — months, not decades.
Wealth Distribution
AI Profits Concentrate at the Top by Default
The companies building and deploying AI capture the productivity gains. Workers displaced by those systems receive nothing. Without a structural mechanism to redistribute, the gap between AI capital owners and everyone else grows permanently wider.
Existing Infrastructure
The Payment Rails Are Already Built
The US already has ACH direct deposit, federal tax infrastructure, and Social Security disbursement systems. Distributing a monthly stipend to every adult American citizen is a software and policy problem — not a logistics problem.
Homelessness
This Is a Distribution Problem, Not a Resource Problem
The United States generates enough wealth to house and feed every citizen multiple times over. Homelessness and food insecurity persist because income does not reach the bottom of the distribution. A universal stipend solves this structurally.
The Plan
Four Pillars. One Simple System.
Universal Basic Income funded automatically by the very technology replacing human workers — no new bureaucracy, no means testing, no applications.
Micro-Tax Every AI-Executed Transaction
A fractional tax — starting at 0.008% — applied to every machine-executed financial transaction: algorithmic equity trades, AI-processed payments, automated logistics settlements, derivatives cleared by algorithms, and every on-chain crypto transaction regardless of size or origin. Each individual tax is invisible. The aggregate is transformative.
A Dedicated National AI Prosperity Fund
All collected revenue flows into a Congressionally chartered, independently audited AI Prosperity Fund — constitutionally separated from the general federal budget and protected from political reallocation. A Senate-confirmed seven-member board oversees the fund. All disbursements are public record. Real-time balance published online.
Direct Monthly Stipend to Every Adult Citizen
Every adult US citizen (18+) receives a monthly direct deposit — no means testing, no work requirements, no application process. Disbursed through existing ACH infrastructure. The stipend is formula-driven and grows automatically as AI transaction volume increases. No annual Congressional vote required.
Self-Reinforcing by Design
The more AI replaces human workers, the more algorithmic transactions occur, the more tax is collected, the larger the monthly stipend becomes. Economic disruption from automation automatically funds the people it displaces. The system scales with technology adoption — not political will.
The Math
Realistic Projections. Honest Estimates.
Based on publicly available data from the Bank for International Settlements, Federal Reserve, and CoinMarketCap. The starting stipend is real, meaningful income on Day 1 — and grows from there.
Transparency note: At 0.008% of ~$10T/day, the fund collects ~$800M/day = ~$292B/year. Divided by 258 million US adults = approximately $94/month starting in 2028. The rate is set conservatively to pass — the formula automatically scales it upward as AI transaction volume grows. Full UBI is a Phase 3 outcome.
Transaction Base Estimate (Daily)
| Category | Source | Est. Daily Volume |
|---|---|---|
| Global FX Market | BIS Triennial Survey 2022 | ~$7.5 trillion |
| US Electronic Payments (ACH, wire, card) | Federal Reserve Payments Study | ~$1.5 trillion |
| Exchange-Traded Derivatives (global) | BIS OTC Statistics | ~$1-2 trillion |
| Global Crypto On-Chain | CoinMarketCap / Chainalysis 2024 | ~$30-80 billion |
| Other algorithmic settlements | Estimated | ~$500 billion |
Conservative broad estimate — excludes HFT notional volume which could add additional trillions.
Stipend Projections by Phase
| Phase | Tax Rate | Annual Fund | Monthly / Adult | Target Year |
|---|---|---|---|---|
| Phase 1 — Launch | 0.008% | ~$292B | ~$94/month | 2028 |
| Phase 2 — Growth | 0.01% | ~$365B | ~$118/month | 2029-2030 |
| Phase 3 — Full UBI | 0.05-0.08% | ~$1.5-2.4T | ~$500-750/month | 2032-2035 |
| Phase 4 — Modernization | Formula-driven | $3T+ | $1,000+/month | 2035+ |
Rate increases from 0.008% to 0.08% are fractions of a fraction. At 0.008%, a $100 stock trade pays $0.008. A $10,000 algorithmic trade pays $0.80. No individual is meaningfully burdened.
Comparison: Existing Financial Transaction Taxes Worldwide
| Tax / Fee | Rate | Status |
|---|---|---|
| SEC Section 31 Fee (US equities) | 0.00278% (2024) | Already law |
| AI Stipend Act — Phase 1 | 0.008% | Proposed |
| France Financial Transaction Tax | 0.3% | Already law — 37x our rate |
| UK Stamp Duty (equity purchases) | 0.5% | Already law since 1986 — 62x our rate |
| Sweden FTT (equities) | 0.5% | Already law since 1984 |
The UK and Sweden have had transaction taxes 62x higher than our proposed rate for decades — with no lasting damage to their capital markets.
How It Gets Implemented
The Legislative Path.
A realistic, step-by-step pathway from proposal to law. Every step is modeled on existing financial regulation precedents — nothing here requires new legal theory.
Draft the AI Stipend Act
Legislation drafted as an amendment to the Internal Revenue Code (Title 26, USC) establishing a new excise tax on algorithmic financial transactions. A companion bill charters the AI Prosperity Fund using the Highway Trust Fund model.
Precedent: The Social Security Act (1935), the Highway Trust Fund Act (1956), and the ACA (2010) all created dedicated revenue streams for specific public programs. This is not novel legislative architecture.
Define "AI-Executed Transaction" in Law
The bill defines a taxable event as any financial transaction where order generation, routing, or settlement is initiated without direct human input at time of execution. Regulated via existing SEC, CFTC, and FinCEN reporting frameworks.
FINRA and the SEC already classify algorithmic vs. non-algorithmic orders in Rule 4370 and Reg SCI. The infrastructure to identify AI-executed transactions already exists in regulatory reporting systems.
Establish the AI Prosperity Fund
A federally chartered independent trust fund, separate from the general fund, managed by a Senate-confirmed seven-member board. Investment policy mirrors the Social Security Trust Fund (US Treasuries only). Annual public audit required by law.
Requires a 3/5 Congressional supermajority to redirect funds — the same constitutional protection as Social Security.
Distribution via Existing Federal Infrastructure
Stipend disbursed monthly via the same ACH system used for Social Security and IRS tax refunds. Citizens enroll through SSA.gov or IRS Direct File. No new agency required. Estimated administration cost: less than 1% of disbursements.
The IRS already has bank account information for approximately 180M Americans. Remaining citizens enroll via a one-time online form — modeled on the 2020-2021 Economic Impact Payment portal.
Automatic Rate Escalation Formula
The tax rate is formula-driven — not set by Congress each year. If the annual fund-per-capita falls below a defined floor, the IRS automatically adjusts the rate upward by 0.001 percentage points per quarter, capped at 0.1%. No annual vote. No political gridlock.
Modeled on the automatic Social Security COLA mechanism, which adjusts benefits based on CPI without requiring a Congressional vote.
Crypto and Cross-Border Enforcement
On-chain transactions tracked via IRS crypto reporting rules (effective 2025 under the Infrastructure Investment and Jobs Act). Foreign entities transacting in USD-denominated instruments subject to withholding — identical to FATCA enforcement.
Perfect enforcement is not required for the fund to be meaningful — even 60-70% compliance on the US-domiciled base produces the Phase 1 projections above.
The Vision
From Stipend to Full Modernization.
The AI Stipend is Phase 1. As the fund grows, it expands into a complete modernization of how America supports its citizens — starting with cash, evolving into free healthcare and free education.
Phase 1 - 2028-2030
Universal Cash Stipend
- →Monthly direct deposit to every adult citizen (18+)
- →Starts at ~$94/month at 0.008% rate
- →No means testing, no work requirements
- →Immediate homelessness reduction begins
- →Food insecurity measurably declines
Phase 2 - 2030-2033
+ Universal Healthcare
- →Fund expansion covers basic health insurance premiums
- →Every citizen enrolled in federal health plan by default
- →Employer insurance remains optional
- →Mental health and preventative care included
- →Funded by automatic rate escalation
Phase 3 - 2033-2040
+ Free Education & Full UBI
- →Community college and vocational training tuition-free
- →K-12 AI literacy programs funded nationally
- →Student loan debt relief pathway established
- →Workforce transition programs for displaced workers
- →Full $1,000+/month UBI operational
Roadmap
Zero homelessness by 2035.
Legislation Introduced
AI Stipend Act introduced in both chambers of Congress. AI Prosperity Fund Act filed as companion bill. Public petition reaches 1 million signatures. Major economists and policy organizations publish independent analysis.
Legislative Progress + Fund Architecture
Committee hearings held. Fund governance board nominated. IRS and SEC begin rulemaking to define AI-executed transactions under existing reporting frameworks. Pilot program explored at state level.
First Stipends Distributed
Micro-tax becomes operational. Fund begins capitalizing. First monthly stipend disbursements reach American adults via ACH direct deposit. Initial amount: approximately $94/month at 0.008% rate on a ~$10T/day transaction base.
Rate Escalation + Fund Growth
Automatic rate formula activates as AI adoption accelerates. Monthly stipend scales toward $118-140/month. Measurable decline in homelessness rates begins. Housing-first programs funded by municipalities using stipend floor.
Healthcare Expansion Begins
Fund large enough to begin covering basic health insurance premiums for uninsured Americans. Universal healthcare enrollment begins alongside continued stipend growth.
Education Modernization
Free community college and vocational training funded. AI literacy programs launched in all K-12 schools. Student loan relief pathway operational. Monthly stipend approaches $500-750/month.
Homelessness and Food Insecurity Functionally Eliminated
With a $500-750/month stipend, universal healthcare, and affordable housing initiatives funded by the program, chronic homelessness reaches near-zero. Full $1,000/month UBI within reach. A Fair and Free America.
FAQ
Common Questions. Honest Answers.
Won't this hurt the stock market?
The proposed 0.008% starting rate is about 3x larger than the SEC Section 31 fee (0.00278%) — but 62x smaller than the UK Stamp Duty on stocks (0.5%), which has existed since 1986. The UK maintains one of the world's deepest capital markets. France has a 0.3% FTT. Sweden has had a 0.5% transaction tax since 1984. Transaction taxes at this scale do not meaningfully impact market liquidity.
Why not just tax AI companies directly?
Corporate income taxes are avoidable through profit-shifting, transfer pricing, and jurisdiction arbitrage — the same techniques tech companies use today to pay effective rates far below the statutory rate. A transaction tax on the activity itself is harder to avoid because the trade must occur in the regulated financial system to have legal standing. Taxing the transaction is more durable than taxing the company.
What stops Congress from raiding the fund?
The legislation explicitly charters the AI Prosperity Fund as a dedicated trust requiring a 3/5 supermajority to redirect funds — the same threshold required to amend Social Security. It will also require sustained public vigilance. This proposal calls for building that will — which is why the petition matters.
Won't AI companies just move offshore?
The tax applies to USD-denominated transactions and transactions cleared through US financial infrastructure — not to where the company is incorporated. The dollar remains the world's reserve currency; most global algorithmic trading is settled in USD through US clearinghouses. FATCA enforcement provides the existing model for cross-border compliance.
Is $94/month actually meaningful?
$94/month covers a utility bill, a week of groceries, or helps prevent eviction in a crisis — for millions of Americans who have nothing today. And it's just the starting point. Social Security paid $22/month in 1940. It now averages $1,907/month. Universal programs that start real and scale with economic reality are the most durable policy interventions in US history.
Join the Movement
Sign. Support. Share.
This plan does not require a billion-dollar lobby. It requires enough people to demand it. Add your name, support the cause, and share with everyone you know.
Support the Movement
No lobby needed. Just people who believe in a Fair and Free America. Every dollar helps build the political will to make this law.
Spread the idea
Ideas move when people share them. This plan does not require a billion-dollar lobby — it requires enough people to demand it.
This proposal represents the independent views of Anthony S. Owens. It is intended to advance public discourse on AI policy, automation economics, and wealth distribution. All figures cited are estimates based on publicly available financial data from the BIS, Federal Reserve, and IRS.