Bill Gates backs taxing billionaires to close the AI wealth gap

Microsoft co-founder Bill Gates believes taxing the rich, much like California's "billionaire tax," may be the best answer for the AI era. AI founders' wealth has surged, the gap between rich and poor keeps growing, and many worry AI could deepen the K-shaped economic divide.

Gates says fixing inequality is first the government's job, not something charity can handle. Governments should tax people based on their wealth, and individuals can then decide how much to give to charity.

Fed data shows the richest 1% of Americans hold more than half of the country's stock assets, so market gains flow mostly to them. Gates pledged about $100 billion to his foundation last year, but even that huge gift may not offset the wealth gap AI could widen.

Gates also points out that companies pay taxes on workers' wages, yet robot costs can be written off right away, so the current tax system pushes firms to replace people with machines. He suggests taxing the tokens used by AI models as well as robots.