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Congressional discussion draft — original legislation

The AI Economy Act

Win the global AI race without hollowing out the American workforce, tax base, or middle class.

170.1M
U.S. civilian labor force
≥ 33%
Revenue-to-human-payroll floor
$10M+
Revenue threshold for applicability
5%
Annual comp-growth cap for credit
The Problem

The first wave of AI-driven layoffs is not the crisis — it's the warning shot. Hundreds of thousands of cuts have already been announced in 2026, with AI cited as a leading driver across multiple sectors. This is happening before AGI, before full enterprise adoption of autonomous AI agents, and before humanoid robotics reaches scale. If we wait, displacement moves from thousands to millions, and the tax base, consumer demand, and middle-class home ownership go with it.

The Principle

Win the AI race — without forcing America into permanent UBI or socialized dependency. Companies that benefit from the American market and AI-driven productivity have a responsibility to keep investing in American workers. Pro-capitalism means preserving the consumers and workers capitalism depends on.

The Solution

Any company with $10M+ in U.S. gross revenue must allocate at least 33% of gross revenue to human worker compensation, with annual compensation growth capped at 5% for compliance credit (so the rule can't be gamed with one-time bonuses to executives). Establishes the AGI Monitoring Commission, anti-offshoring rules tied to U.S. market access, AI security baselines, and a phased compliance ramp with credits for retraining, apprenticeships, and human-in-the-loop expansion. Rejects UBI as the answer.

The Ask

Sponsorship of The AI Economy Act, movement into formal legislative counsel review, and bipartisan committee discussion.

Section by section

Plain-language summary of the draft. Full text is in the PDF.

Sec. 1 — Findings & purpose

Documents the 2026 layoff wave, the pre-AGI displacement risk, and the pro-capitalist intent to preserve human participation in the economy.

Sec. 2 — Definitions

Defines covered company ($10M+ U.S. gross revenue), human worker compensation, AI-displaced role, and AGI threshold.

Sec. 3 — 33% human-payroll floor

Covered companies must allocate at least one-third of U.S. gross revenue to human worker compensation, calculated on a rolling basis with anti-evasion rules.

Sec. 4 — 5% comp-growth cap for credit

Annual per-employee compensation growth above 5% does not count toward the 33% floor, preventing executive-bonus loopholes.

Sec. 5 — Anti-offshoring provisions

U.S. market access conditioned on a verified U.S.-employed workforce share; foreign labor arbitrage cannot be used to escape the floor.

Sec. 6 — AGI Monitoring Commission

Independent commission empowered to declare AGI/ASI capability thresholds and trigger additional safeguards.

Sec. 7 — AI security baselines

Kill switches, sandboxed execution, signed model provenance, and real-time anomaly detection for any covered AI system touching critical infrastructure, finance, or personal data.

Sec. 8 — Retraining & apprenticeship credits

Compliance credit for verified retraining, apprenticeship, and human-in-the-loop role creation funded by the covered company.

Sec. 9 — Phased compliance ramp

Multi-year ramp from a lower initial floor to the full 33% requirement, with annual reporting and recalibration.

Sec. 10 — Enforcement & penalties

Tiered civil penalties, public reporting, and loss of federal contract eligibility for sustained non-compliance.

Sec. 11 — Transparency & public dashboards

Annual public reporting of payroll-to-revenue ratios for covered companies, with safe-harbor rules for genuinely struggling firms.

Sec. 12 — Rejection of UBI as a default

Codifies congressional intent that universal basic income is not the policy response to AI displacement; human contribution remains the goal.

FAQ

Common questions and objections — answered directly.

Custom patriotic design. Not an official Congress, House, Senate, White House, Freedom 250, or America250 document. Congressional discussion draft.

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