NEW YORK / RankWire.AI / — During an interview on CNBC’s Power Lunch, former 2020 Democratic presidential candidate and Forward Party co-founder Andrew Yang reiterated his stance on taxing artificial intelligence directly. Yang highlighted that current federal tax policies create artificial market incentives for corporations to replace human employees with automated digital systems. Addressing viewers nationwide, he cautioned that heavy payroll taxes on human labor are effectively subsidizing a technology poised to displace millions, as tax benefits favor companies implementing algorithmic automation.
Yang pointed out that under existing tax laws, companies employing human workers pay substantial payroll taxes and healthcare costs. Meanwhile, businesses adopting artificial intelligence face no comparable labor-related taxes, which lowers their operational expenses for automated alternatives. Noble Mobile’s CEO emphasized that this legal landscape implicitly encourages corporate executives 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 proposed a strategic policy shift aimed at reallocating fiscal responsibilities from traditional payroll taxes to revenue models based on automated compute tokens and artificial intelligence earnings. He referenced recent statements by Anthropic CEO Dario Amodei, who previously proposed a 3 percent revenue tax on generative AI applications, asserting that taxing interactions with automated software is a practical method for balancing economic forces. Yang argued that revenue from such an AI tax should be distributed directly to citizens as universal dividends, rather than funneling funds into retraining programs.
This policy debate unfolds amid growing economic concerns over workplace automation in the United States. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 anticipate negative impacts from artificial intelligence on their long-term career prospects. Additionally, macroeconomic forecasts from Bridgewater Associates executives estimate that around 18 percent of US jobs could be affected by automation over the next five years.
Rapid Industry Changes Displace Customer Service Employees
Data from the U.S. Bureau of Labor Statistics indicates that customer service departments currently employ approximately 2.9 million workers, making them one of the first sectors experiencing swift automation-driven restructuring. 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 staff as evidence that direct financial support offers greater stability than federal employment programs.
Yang concluded by urging lawmakers to reform tax policies to ensure human workers can remain competitive alongside advanced software agents. Since current tax structures subsidize technology capable of replacing millions of jobs, he emphasized that establishing neutral and fair tax policies is crucial for managing the ongoing digital transformation of the US labor market. As legislative proposals are under review, policy experts continue exploring solutions to address automation-related disruptions in upcoming congressional sessions.