![\"Vinod](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/2024-03-14_SXSW_Vinod-Khosla_08741.jpeg\")
\t\tOpenAI investor Vinod Khosla (Image: Wikimedia Commons).\t<\/p>\n\t\t\tSunday 29 March 2026 1:37 pm\n\t\t\t<\/p>\n
\t\tOpenAI investor Vinod Khosla (Image: Wikimedia Commons).\t<\/p>\n
An early investor in OpenAI has called for a radical overhaul of the US tax system in anticipation that the rise of AI will necessitate a shift <\/a>from taxing labour to taxing capital.<\/p>\n American businessman and venture capitalist Vinod Khosla has said that as the accelerated automation of the workforce<\/a> fuels public anxiety over job loss, a sweeping measure to make near 125m lower- and middle-income American\u2019s exempt from income tax would ease fears. He said the move would be supported by raising levies on capital gains.<\/p>\n \u201cWhen I talk to people, the biggest thing is fear of AI taking their job by far,\u201d Khosla said at a forum in Washington. <\/p>\n He told the Financial Times the disruption would be \u201cthe single biggest issue\u201d in the 2028 US presidential election cycle.<\/p>\n AI to perform \u201980 per cent of tasks in 80 per cent of jobs\u2019<\/p>\n Khosla has previously warned that within 25 years, AI could perform 80 per cent of the tasks in 80 per cent of current jobs \u2013 a shift he believes will eventually make universal basic income a necessity.<\/p>\n The billionaire\u2019s proposal involves eliminating federal income tax for those earning less than $100,000 and tax capital gains at the same rate as ordinary income, arguing that the current system gives \u201cpreferential treatment\u201d to wealth over work.<\/p>\n Khosla doubled down on X, stating in a post that AI would \u201ctransform economies and need a rethink of capitalism and equity\u201d.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tSunak urges rethink on taxing jobs as AI begins to reshape hiring<\/a><\/p>\n \u201cLabour portion of economy (vs capital) will decline sharply. Should we eliminate preferential treatment of capital gains tax and equalize to ordinary income? 40 per cent of capital gains taxes are paid by those with income >$10m\/year!\u201d<\/p>\n Khosla, who is a long-time Democratic donor, said that the Trump administration had \u201cgenerally done a pretty good job\u201d on AI policy, though he did voice sharp criticism of the former President\u2019s character, citing a \u201ccomplete lack of values of any sort\u201d and a \u201cnegotiating style that destroys credibility\u201d.<\/p>\n The latest AI warning from Khosla comes after Blackrock chief Larry Fink forecast that skilled trades like plumbing and electrical work will become more valuable while some office roles decline.<\/a><\/p>\n In an interview with the BBC, the asset manager boss claimed the US had \u201coverdid\u201d its push for young people to go to university and pursue white-collar careers, arguing the balance now needs to shift.<\/p>\n \u201cI think what we did wrong\u2026 we really put judgement on so many jobs,\u201d Fink said. \u201cWe need to be proud that a career can be just as strong in these fields of plumbing and electricians.\u201d<\/p>\n Fink, who leads Blackrock with $14 trillion in assets under management, said the rise of AI is already changing the types of jobs in demand.<\/p>\n \t\t\t\t\tRead more<\/p>\n