Musk: Treasury Should Send Universal High Income, Not AI Equity

On June 20, 2026, Elon Musk wrote on X that the U.S. Treasury should send a universal high income directly to citizens rather than take ownership stakes in major artificial intelligence companies. He argued direct cash payments would be preferable to creating a sovereign wealth fund made up of equity in AI firms. “Better just to send money directly to the people from the Treasury,” he wrote, adding, “In fact, my prediction is that we will desperately be fighting deflation.”

Musk posted the comments in response to remarks by Vice President JD Vance, who had expressed openness to the administration taking ownership positions in large AI companies. Musk said he expects AI and robotics to raise output in goods and services faster than the money supply, which he said would limit inflationary pressure.

The proposal builds on views Musk has expressed for years. He raised a form of guaranteed income at an international summit in 2017 and later used the term “universal high income,” saying AI-driven productivity could reduce scarcity. In a late-2025 interview he said AI and robotics, including Tesla’s Optimus humanoid robot, are a path to addressing the U.S. debt problem and predicted output growth would overtake inflation within three years.

A competing policy approach is under discussion in Washington. Senator Bernie Sanders introduced the American AI Sovereign Wealth Fund Act in early June, which would impose a one-time 50% stock transfer tax on large AI companies and create a fund holding 50% voting shares in those firms, managed by an independent commission. Administration officials have discussed taking equity stakes in AI firms, and the White House has pointed to CHIPS Act grants that converted into roughly a 10% stake in Intel as a precedent.

Musk rejects government equity ownership and favors keeping AI firms private while taxing profits and distributing proceeds as direct payments to citizens. He has included his own xAI among the companies he would keep under private control.

Musk’s comments came days after SpaceX’s initial public offering priced at $135 a share. Multiple wealth trackers attributed a jump in his estimated net worth past $1 trillion to his roughly 38% to 40% stake in SpaceX combined with holdings in Tesla. Advocacy groups criticized the milestone as a sign of inequality and called for wealth taxes; supporters noted much of his wealth is unrealized equity tied to companies that have reduced costs in electric vehicles, satellite internet and launches.

Economists remain divided on Musk’s assertion that AI-driven productivity will cause deflation. Central banks generally target mild inflation around 2% because sustained deflation can raise the real burden of debt and discourage spending. Some economists point to engineering, energy and regulatory challenges in scaling humanoid robots to the levels Musk describes. Labor economists, including David Autor, have noted that automation historically displaces some jobs while creating new categories of work, which could complicate forecasts about the future of labor.

The debate in Washington centers on whether to pursue public equity stakes in AI firms, as proposed by Sanders and discussed by administration officials, or to keep companies privately owned and use tax revenue for direct payments to citizens, as Musk recommends.