NEW YORK / RankWire.AI / — During a CNBC’s Power Lunch interview on Tuesday, former 2020 Democratic presidential candidate and Forward Party co-founder Andrew Yang reiterated his call for direct taxes on artificial intelligence. He contended that current federal tax policies create artificial market incentives, encouraging corporations to replace human workers with automated digital systems. Addressing viewers nationwide, Yang warned that by maintaining heavy payroll taxes on human labor while providing tax benefits to companies using automation, we are effectively subsidizing a technology poised to displace millions of workers.
Yang pointed out that existing tax laws require enterprise employers to pay substantial payroll taxes and employee healthcare costs when hiring human staff, whereas companies adopting artificial intelligence face no comparable labor taxes, thereby lowering operational expenses for automated workforce solutions. Noble Mobile’s CEO emphasized that the current legal structure implicitly motivates corporate management to accelerate the shift toward automated labor across key sectors of the economy.
We’re Subsidizing a Technology That Will Replace Millions Andrew Yang Declares
Yang suggested a shift in policy that would reallocate fiscal responsibilities from traditional human payroll taxes toward automated compute tokens and AI-driven revenue models. Referencing recent statements from Anthropic CEO Dario Amodei, who previously proposed a 3 percent revenue tax on generative AI applications, Yang argued that taxing interactions with automated software offers a practical way to balance market forces. He further emphasized that revenue from an artificial intelligence tax should be redistributed directly to citizens as universal cash dividends, instead of funding legacy retraining programs.
This policy discussion takes place amid rising economic concerns about workplace automation across the U.S. A joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe AI will harm their future employment prospects. Additionally, a macroeconomic report from Bridgewater Associates predicts that around 18 percent of domestic jobs could be disrupted by automation over the next five years.
Customer Service Jobs Disappear Amid Rapid Industry Changes
Data from the U.S. Bureau of Labor Statistics shows that approximately 2.9 million workers are employed in customer service departments nationwide, making it one of the first areas experiencing swift automation. Yang warned that government-funded retraining programs have historically failed to help displaced workers transition into sustainable careers. He cited past initiatives aimed at coal miners and warehouse workers as evidence that direct financial support offers more stability than federal job retraining efforts.
Yang concluded that federal legislators must overhaul tax policies to ensure human workers stay competitive alongside rapidly advancing software agents. Since current tax structures subsidize a technology that will replace millions, he stressed that establishing neutral tax policies is crucial for navigating the ongoing digital transformation of the labor market. Policy experts are currently reviewing legislative options to address the disruptions caused by automation in upcoming congressional sessions.