Massachusetts Lawmakers Push Bill to Tax Corporate AI Revenue, Threaten Tech Sector's Bottom Line
In a move that could reshape the economic landscape of the state, Massachusetts legislators are advancing a controversial bill to impose a 2% tax on corporate revenue generated by artificial intelligence systems. If passed, the "AI Jobs and Public Safety Act" would mandate that companies with over $10 billion in global revenue pay a quarterly levy on all AI-driven transactions, including automated customer service, algorithm-based sales, and AI-generated content. Proponents argue the tax will fund workforce retraining and consumer protection, but tech leaders warn it will slash profit margins, drive innovation to lower-cost states, and trigger a mass exodus of talent. The bill, set for a critical committee vote next week, has already sparked a lobbying blitz from Big Tech, while small-business owners in Massachusetts worry about compliance costs. The outcome could set a national precedent for AI regulation and taxation, directly impacting shareholder value and regional competitiveness.