Artificial intelligence is rapidly reshaping the economy, but two Stanford Law alumni argue that existing tax frameworks are failing to capture—or fairly distribute—the value it generates. Jeremy Bearer-Friend, JD '14, a professor at George Washington University Law School, and Sarah Polcz, JSM '12, JSD '20, a professor at UC Davis School of Law, join co-host Professor Richard Thompson Ford to discuss a proposal that would require leading AI companies to pay a portion of their taxes in equity rather than cash, with those shares placed into a public trust, and their work with U.S. Senate members to make this happen.
The conversation explores a central question: If AI was built on vast amounts of human-generated text, images, and creative work, who is entitled to share in the wealth it produces? Bearer-Friend and Polcz connect their proposal to broader concerns about wealth concentration and whether the gains from AI will flow to a narrow class of tech executives and investors—or to the public at large.
The episode also examines how an equity-based tax could work in practice, including questions of governance, political insulation, and the mechanics of a sovereign wealth fund, and what it would mean to give the public a direct stake in the companies shaping the future of artificial intelligence.
Links:
Jeremy Bearer-Friend >>> GW Law School page
Sarah Polcz >>> UC Davis School of Law page
“Sharing the Algorithm: The Tax Solution to Generative AI” >>> Columbia Journal of Tax Law page
American AI Wealth Fund Bill >>> PDF
“Everyone Wants to Tax A.I. The Big Disagreement: How?” >>> NY Times DealBook page
“Don’t laugh off Bernie Sanders’ communist AI-heist attempt — young voters are falling for it” >>> New York Post page
Connect:
Episode Transcripts >>> Stanford Legal Podcast Website
Stanford Legal Podcast >>> LinkedIn Page
Rich Ford >>> Twitter/X
Pam Karlan >>> Stanford Law School Page
Stanford Law School >>> Twitter/X
Stanford Lawyer Magazine >>> Twitter/X
(00:00:00) A Tax Paid in Stock
(00:02:14) IP, Inequality, and the AI Boom
(00:05:56) Why the Public Deserves an Equity Stake
(00:11:58) How the Tax Would Actually Work—Stock, Rates, and Governance
(00:16:59) Sanders, Trump, and a Race to Co-opt the Idea
(00:21:06) Objections, Safeguards, and the Road Ahead
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.