CryptoTaxAudit blog graphic about the American AI Sovereign Wealth Fund Act. On the right, a futuristic blue AI data center marked “AI” is split by a glowing red crack. A huge cracked “50%” sits across the building as a giant hand from the U.S. Capitol side appears to tear away half of it, symbolizing government ownership of 50% of large AI companies. On the left, text reads “American AI Sovereign Wealth Fund Act: 50% AI Tax,” with a summary explaining Bernie Sanders’ proposal for a one-time 50% tax paid in company stock.

ai tax crypto news Sep 03, 2026

A 50% Stake in AI Companies? Why This AI Wealth Fund Bill May Never Become Law

By Clinton Donnelly, LLM, EA | CEO & Founder, CryptoTaxAudit

Here is a bill that would take half of America's biggest AI companies and hand it to the government. Not a tax on their profits. Half the company, paid in stock.

That is the heart of the American AI Sovereign Wealth Fund Act, introduced by Senator Bernie Sanders in June 2026. It targets any AI company with more than 200 million dollars in annual sales.

My take? It is a non-starter. Nobody is going to approve a 50% grab on these companies. Take half of what they are worth, and you hamstring their ability to grow, which lets competitors in other countries pull ahead.

Let me break down what the bill actually says, and why I do not think it will ever become law.

Key Takeaways

One-time 50% tax, paid in stock: The bill imposes a one-time 50% tax on large AI companies, payable in company stock rather than cash. It applies to firms with more than 200 million dollars in annual sales.

A projected 7-trillion-dollar fund: Sanders projects a fund worth around 7 trillion dollars, paying roughly 1,000 dollars a year to every American, plus money for healthcare, education, and housing.
This is an equity grab, not a profit tax: Because the tax is paid in stock, the government would end up owning about half of each company. That is very different from taxing one year of earnings.
Seven appointees would control it: A seven-member independent commission, nominated by the President and confirmed by the Senate, would run the fund and hold voting shares in these companies.
Concentrated ownership can bend corporate boards: BlackRock used a similar shareholder position to push ESG onto companies, then backed away. A 7-trillion-dollar government fund would wield far more power over these firms.
It is widely seen as unlikely to pass: When the current Congress ends in 2026, every bill that did not pass is dead. Most reporting agrees this one has little chance.

What Is the American AI Sovereign Wealth Fund Act?

The American AI Sovereign Wealth Fund Act is a bill from Senator Bernie Sanders that would impose a one-time 50% tax on large AI companies, paid in company stock rather than cash. It applies to firms with more than 200 million dollars in annual sales.

The stock goes into a government-run sovereign wealth fund. Sanders projects the fund could be worth around 7 trillion dollars. He says it would pay out roughly 1,000 dollars a year to every American, plus money for healthcare, education, and housing.

A seven-member independent commission would run the fund. The President nominates the members, the Senate confirms them, and the fund is not allowed to sell the stock.

So this is not a tax on profit. It is the government taking half the ownership of these companies in one shot.

Take Half the Company and They Leave

Take half of what these companies are worth and you cripple their ability to compete. That is my first problem with this bill.

These companies reinvest their gains to build the next generation of models. Strip out half the ownership and you strip out the reason to keep building here.

I think a penalty this size pushes them to do one of two things. Move operations somewhere the government cannot reach them. Or spend heavily on political activity to kill the bill before it passes.

Neither outcome helps the average American. And that kind of political spending is not good for anyone.

Who Really Pays This Tax? You Do.

Here is what people miss. Tax half of what these companies are worth, and they raise prices on the businesses that use their services.

Those businesses pass the cost down the line. It lands on you, the consumer, in the price of goods and services.

The pitch sounds great. Tax the big guys, take half, and hand it back to regular people. In practice the cost trickles down to the same people the bill claims to help.

That is the part that gets me. It is patronizing to tell the common man these costs will not reach him. They always do.

The 7 Trillion Dollar Slush Fund Problem

A 7-trillion-dollar fund controlled by a government commission is the biggest slush fund I can imagine. That is my honest read.

We have heard the promises before. The money comes back as healthcare, housing, and thousand-dollar checks. I don’t buy it.

Large pools of public money invite mismanagement. The bigger the pool, the bigger the temptation. Seven trillion dollars is a lot of temptation.

Supporters say a commission keeps it clean. I have watched enough of these promises to be skeptical that any board stays devoted to the taxpayer once the money gets that big.

When Government Becomes the Biggest Shareholder

The real danger is control, not just money. Under this bill the government would hold voting shares and board seats in every one of these companies.

We saw what concentrated shareholder power can do. BlackRock, one of the largest fund managers in the country, became a top shareholder across corporate America through the retirement money it manages.

BlackRock used that position to push ESG guidance onto corporate boards. It pressured companies to make decisions that were not always good for the business. The firm has since backed away from pushing those initiatives.

Now picture a government fund sitting on 7 trillion dollars of AI stock. With voting shares and board seats, it can bend these companies to whatever the commission wants. That is a lot of power to hand to seven appointees.

Why This Bill Is Really Election-Year Posturing

This bill is very unlikely to become law. Even the reporting on it notes that it has little chance under the current Congress.

2026 is an election year. Bills like this make good talking points. They rally voters and signal that someone is doing something about big tech.

Here is the mechanical reality. When the current Congress ends and a new one convenes in January 2027, every bill that did not pass is dead. It has to start over from scratch.

So most of what you are hearing right now, from both parties, is posturing. Few of these bills will ever get a vote. This one is a talking point, not a law.

Frequently Asked Questions About the AI Sovereign Wealth Fund Act

Q: What is the American AI Sovereign Wealth Fund Act?

A: It is a bill from Senator Bernie Sanders that would put a one-time 50% tax on large AI companies, paid in stock, not cash. It hits firms with more than 200 million dollars in annual sales and puts that stock into a government-run fund.

Q: Does this bill tax AI company profits?

A: No, and that is a common misread. The tax is paid in stock, so the government ends up owning about half of each company. It is an equity grab, not an annual profit tax.

Q: How much would the AI wealth fund pay each American?

A: Sanders projects a fund worth around 7 trillion dollars and annual payments of roughly 1,000 dollars per person. Those are projections, and many of these AI companies are not profitable yet.

Q: Will the American AI Sovereign Wealth Fund Act become law?

A: I do not think so, and most reporting agrees it has little chance in the current Congress. When this Congress ends in 2026, the bill dies unless it is reintroduced and passed in the next one.

Q: I am an AI or crypto investor. Should I worry about this bill?

A: Not about this specific bill, in my view, because it is unlikely to pass. What is worth watching is the broader push to tax AI and digital assets, since those ideas keep coming back in new forms.

Q: Is taking stock better or worse than taxing profits?

A: For the companies it is arguably worse. A one-time 50% stock tax hands the government permanent ownership and board control, not just a slice of one year's earnings. That is the part that would push these firms to fight it or leave.

Q: Where can I get more analysis like this?

A: I break down tax and policy moves like this on The Clinton Donnelly Show. If you are a crypto or AI investor who wants to stay ahead of where tax policy is heading, you can also book a consultation with our team.

About CryptoTaxAudit: Founded in 2015 by Clinton Donnelly (LLM, EA), CryptoTaxAudit specializes exclusively in cryptocurrency tax preparation and IRS audit defense. Clinton holds an advanced law degree in international financial planning, federal Enrolled Agent status, and the Certified Cryptoasset Anti-Financial Crime Specialist credential from ACAMS. The firm has filed more than 5,000 crypto tax returns, defended clients in over 50 IRS audits, and represented five traders in U.S. Tax Court. CryptoTaxAudit tracks the federal tax and policy moves that affect crypto and AI investors, including proposals like the American AI Sovereign Wealth Fund Act.