Khosla Ventures founder Vinod Khosla argues in The Information that the US should scrap preferential capital gains rates after the 2028 election and tax those gains as ordinary income, since AI will handle 80% of the work in 80% of jobs, pushing returns toward capital. He puts it at roughly $400B a year, $300B from the rate change and $100B from closing breaks like stepped-up basis and pass-through deductions, with carve-outs for a primary residence and family farmland. The money would go first to workers AI displaces, and whatever is left would come back as income tax rebates to about 75 million Americans making under $75,000 a year. From 2030 he would add a 20% tax on AI compute and on revenue from robots replacing workers, but only if displacement turns out to be severe.
