Senator Gallego unveils sweeping AI-focused labor and tax plan

In a detailed policy rollout, Senator Ruben Gallego outlined a multi-pronged strategy to shield the U.S. workforce from the rapid expansion of artificial intelligence. Core elements include raising the federal minimum wage to $20 per hour, tying it to inflation, and boosting overtime pay from time-and-a-half to double. The proposal also targets the AI sector with a 10% excise tax on data-center revenues, a “robot tax” to deter job-displacing automation, and a potential levy on AI tokens, directing the revenue to a New Deal-style public works program.

Additional provisions would reclassify many gig workers as employees, mandate paid leave, and require companies to give notice before large-scale layoffs. Gallego intends to push the package through a party-line reconciliation bill, arguing Democrats should not be constrained by the Senate parliamentarian if they gain control of the House, Senate and White House after the 2028 cycle.