Sanders Asks Musk How He’d Fund a Universal High Income

Sen. Bernie Sanders publicly challenged Elon Musk to explain how the tech billionaire would finance a government-backed “Universal High Income.” Sanders raised the question after Musk posted that large cash payments could address unemployment caused by artificial intelligence and automation.

Musk wrote on X that government checks could be the best solution to AI-driven job losses. He argued that increased production from AI and robotics would generate enough goods and services to offset a rise in the money supply and prevent inflation from broad cash payments.

Sanders replied in a post directed at Musk, noting that Musk has declined to back a proposed 5% annual wealth tax on his reported $817 billion fortune. The senator pressed Musk to say how he would contribute to funding a universal income if he opposed levies on extreme wealth.

The tax Sanders referenced is included in legislation he co-sponsored with Rep. Ro Khanna, the “Make Billionaires Pay Their Fair Share Act.” The proposal would impose a 5% annual tax on net assets above $1 billion. Supporters estimate the levy would affect roughly 938 billionaires and could raise about $4.4 trillion over 10 years; opponents have criticized the idea of an annual tax on net worth.

AI-related job disruptions have accelerated in 2026. Reported figures show AI agents claimed about 9,200 jobs in 2026 alone. An analysis from Goldman Sachs estimated that AI reduced U.S. payrolls by roughly 16,000 positions per month over the past year. The displacement has extended into higher-skill roles; Musk has warned that AI could replace PhD-level finance and research jobs.

AI researchers have issued warnings about broad workforce impacts. Dario Amodei has written that AI could eliminate as many as 50% of entry-level white-collar jobs within five years and suggested U.S. unemployment might rise significantly under some scenarios. Musk has described AI as a potentially highly disruptive economic force and has predicted a future in which many traditional jobs are no longer necessary.

Neither Musk nor Sanders has offered a shared financing plan for a universal income. Musk has argued that higher output from AI could prevent inflationary pressure on cash payouts, while Sanders has said wealthy individuals should help fund large-scale income support through measures such as the proposed wealth tax. The exchange highlights a central policy question: who would pay for broad income support if AI substantially reduces employment, and what funding mechanism would be used.