NEW YORK / RankWire.AI / — During an interview on CNBC’s Power Lunch, former 2020 Democratic presidential hopeful and Forward Party co-founder Andrew Yang reiterated his call for direct taxation on artificial intelligence. He emphasized that current federal tax policies inadvertently promote corporate incentives to replace human workers with digital automation systems. Addressing viewers nationwide, Yang cautioned that by imposing heavy payroll taxes on human employment while granting tax benefits to companies utilizing algorithmic automation, we are effectively subsidizing a technology that could eliminate millions of jobs.
Yang explained that existing tax laws require businesses to pay substantial payroll taxes and healthcare costs when hiring employees. In contrast, companies investing in artificial intelligence face no comparable labor taxes, which reduces operational expenses for automated workforce solutions. Noble Mobile’s CEO highlighted that this legal environment tacitly encourages management to accelerate the transition toward automated labor across various key industries.
We’re Subsidizing a Technology That Will Replace Millions Andrew Yang Declares
Yang suggested a strategic policy shift that would reallocate fiscal responsibilities from traditional payroll taxes to automated compute tokens and AI-derived revenue streams. Citing recent remarks from Anthropic CEO Dario Amodei, who previously proposed a 3 percent revenue tax on generative AI platforms, Yang argued that taxing interactions with automated software offers a sensible way to balance market dynamics. He added that proceeds from such an AI tax should go directly to citizens in the form of universal cash dividends, rather than being funneled into outdated retraining programs.
This policy debate unfolds amid rising economic concerns about automation’s impact on jobs across the U.S. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe artificial intelligence will harm their long-term career prospects. Additionally, macroeconomic projections from Bridgewater Associates executives estimate that about 18 percent of U.S. jobs could be disrupted by automation over the next five years.
Rapid Automation Is Displacing Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that around 2.9 million employees work in customer service departments nationwide, marking one of the initial sectors experiencing swift automation-driven transformation. Yang warned that government-led workforce retraining initiatives have historically failed to help displaced industrial and administrative workers find sustainable new careers. He pointed to past efforts to retrain coal miners and warehouse workers as proof that direct financial aid provides more stability than federally managed job transition programs.
Yang concluded by urging federal lawmakers to reform tax policies to keep human workers competitive in an era of rapidly advancing digital agents. Since current tax structures subsidize a technology poised to replace millions of jobs, Yang emphasized that establishing neutral and fair tax policies is crucial for managing the ongoing digital shift in the nation’s labor market. Policymakers are actively exploring legislative options to address automation-related workforce disruptions in upcoming congressional sessions.