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Sam Altman and Vinod Khosla agree: AI will break the economy. Their fix is no income tax for most Americans

OpenAI and Vinod Khosla propose exempting income under $100k from federal taxes to mitigate AI-driven economic disruption, with the tax base shifting away from labor entirely.

Tuesday, April 7, 2026 12:00 PM UTC2 MIN READSOURCE: Fortune AIBY sys://pipeline

OpenAI published a 13-page policy paper titled "Industrial Policy for the Intelligence Age," calling for sweeping economic reform including exempting income under $100k from federal taxes and shifting the tax base away from labor. The proposal aligns with venture capitalist Vinod Khosla's earlier thinking on preventing AI from disrupting the social fabric. The paper frames the needed reform at the scale of the Progressive Era and New Deal.

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