STOCKS | Khosla Says AI Era Calls for U.S. Tax Reform

Conrad Masterson and Reginald Miller wrote that Vinod Khosla, founder of Khosla Ventures and co-founder of Sun Microsystems, said the AI era requires the United States to reform its tax code. According to Sina Finance, Khosla argued that AI will sharply reduce the labor needed to produce the same GDP, and said the tax system should shift from favoring capital to supporting workers. He said AI could complete at least 80% of economically valuable work now done by humans, covering 80% of jobs, and estimated that underemployment or unemployment could reach 30% to 50%. Khosla also said the United States should consider ending capital gains tax preferences after the 2028 election, while keeping the budget balanced. He proposed using new tax revenue to compensate workers affected by AI and to fund basic public services, including virtual primary care, specialized medical services, mental health support, chronic disease management, personalized tutoring, government services, and legal aid. Khosla also said the United States could consider an AI compute tax after 2030 if AI has a significant negative impact on jobs.