Bernie Sanders publicly challenged Elon Musk, demanding to know how the tech billionaire plans to fund a “Universal High Income” while refusing to support a 5% tax on his own $817 billion fortune.
Elon Musk posted on X that government checks could be the best solution to AI-driven unemployment. He argued that AI and robotics would generate enough goods and services to offset any increase in the money supply and prevent inflation.
Sanders Turns the Funding Question Back on Musk
The Vermont senator fired back in a direct post to Musk, pointing to the contradiction. Sanders framed his criticism as a broader challenge to economic fairness and the funding model behind large-scale income-support proposals.
Sanders and Rep. Ro Khanna have proposed the “Make Billionaires Pay Their Fair Share Act”. The bill would impose a 5% annual wealth tax on net assets above $1 billion. The bill targets roughly 938 billionaires and projects $4.4 trillion in revenue over a decade.
AI Job Displacement Is Already Accelerating
The policy clash arrives as AI layoffs mount in 2026 across major industries. AI agents claimed 9,200 jobs in 2026 alone, with Goldman Sachs estimating AI trimmed roughly 16,000 US monthly payroll positions over the past year.
The displacement affects not only entry-level work. Musk has amplified warnings about AI eliminating PhD-level finance and research roles. He suggest the threat extends well up the skills ladder.
Dario Amodei has warned that AI could eliminate up to 50% of entry-level white-collar jobs within five years. He also suggested that US unemployment could potentially rise to 20%. Musk has previously stated he expects AI to become the most disruptive economic force in history, predicting a future where no job is ultimately necessary.
Whether that future can be managed through government income support, and who would pay for it, is a question neither side has yet answered concretely.