Democrats are increasingly embracing proposals to tax AI and scale back tax incentives for data centers as they seek to address voter concerns about electricity costs, water use, job displacement and the broader economic impacts of emerging technologies. While the measures face long odds in the current Congress, they could serve as a preview of future policy debates if Democrats gain greater influence on Capitol Hill.
Bracewell’s Timothy Urban told Bloomberg Tax that lawmakers benefit from introducing bills now because it establishes their credibility as thought leaders on the issue.
Legislative directors all over Capitol Hill this time of year are tasked with ensuring their “boss has significant noteworthy opportunities to be leaders on these issues,” Urban said. These bills, he predicts, will be reintroduced, and more like them will follow.