Sanders proposes public stake in AI companies. Sen. Bernie Sanders (I-VT) introduced the American AI Sovereign Wealth Fund Act, which would impose a one-time tax giving the federal government a 50 percent equity stake in large artificial intelligence companies. The tax would apply to companies with at least $200 million in annual artificial intelligence (AI) sales, with the government’s shares placed in a public wealth fund overseen by an independent commission.
Ways and Means panel will examine home visiting program. The House Ways and Means Work & Welfare Subcommittee will hold a hearing Thursday on the Maternal, Infant, and Early Childhood Home Visiting program. The program supports home visits for pregnant women and families with young children, with a focus on maternal and child health, early childhood development, parenting support, and family well-being.
Colorado family tax credit may turn off again. Colorado’s Family Affordability Tax Credit may not be available for the next two tax years because state revenue is not expected to grow enough to trigger it. The credit, created in 2024, has benefited families only once, in 2025, when experts say it helped reduce child poverty in the state by 37 percent. Annual revenue growth must reach at least 3 percent to activate the credit at its lowest level, but the governor’s budget office projects growth of 1.8 percent and 2.8 percent for the next two fiscal years.
California wealth tax backers offer lower rate. The union behind a proposed California billionaire tax is asking Gov. Gavin Newsom (D-CA) to support a 2 percent wealth tax, down from the 5 percent rate in the initiative that has enough signatures to qualify for the November ballot. The Service Employees International Union-United Healthcare Workers West says the tax is needed to offset federal health care funding cuts and avoid shifting more costs to working Californians. Newsom remains opposed, arguing that a state-only wealth tax would drive entrepreneurs out of California and weaken the economy.
Itemized: Fact of the Week. The federal tax system is progressive, but tax type matters. TPC estimates that in 2026, the top 20 percent of tax units will report 55 percent of income and pay 68 percent of all federal taxes. Average tax rates vary from 4.6 percent for households in the lowest-income quintile to 25.3 percent for those in the top income quintile. Taxes on individual and corporate income and the estate tax are the most concentrated revenue sources, while payroll taxes, excise taxes, and customs duties are more evenly distributed or even regressive.
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