NEW YORK / RankWire.AI / — Andrew Yang, the former Democratic presidential candidate in 2020 and co-founder of the Forward Party, reiterated his call on Tuesday for direct taxation on artificial intelligence during an interview on CNBC’s Power Lunch. Yang maintained that current federal tax policies create artificial incentives for corporations to replace human workers with automated digital systems. Speaking to viewers nationwide, Yang cautioned that heavy payroll taxes on human labor subsidize a technology that will displace millions of jobs, while tax benefits are given to companies that deploy algorithmic automation.
During the interview, Yang highlighted that under present tax laws, companies pay substantial payroll taxes and cover employee healthcare costs when they hire human workers. In contrast, firms adopting artificial intelligence solutions face no similar labor taxes, effectively reducing their operational expenses for automated workforce options. Noble Mobile’s CEO emphasized that the existing legal framework implicitly encourages corporate executives to accelerate the replacement of human labor with automation across key sectors of the economy.
We’re Subsidizing a Technology That Will Replace Millions Andrew Yang Declares
Yang suggested a strategic policy change that would shift the financial burden away from traditional payroll taxes towards taxing automated compute tokens and revenue from artificial intelligence services. Citing recent remarks from Dario Amodei, CEO of Anthropic, who proposed a 3 percent revenue tax on generative AI systems, Yang argued that taxing interactions with automated software provides a sensible method for balancing economic forces. He emphasized that the income raised from an artificial intelligence tax should be distributed directly to citizens as universal cash dividends, rather than being funneled into outdated retraining programs.
This policy discussion unfolds amid growing economic concerns about automation’s impact on the U.S. workforce. 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 future career prospects. Additionally, macroeconomic forecasts from Bridgewater Associates’ executives estimate that automation could threaten approximately 18 percent of all domestic jobs over the next five years.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that customer service departments nationwide currently employ around 2.9 million individuals, making them among the first sectors experiencing swift automation-driven restructuring. Yang warned that federal programs aimed at workforce retraining have historically failed to help displaced workers transition into sustainable careers. He pointed to past initiatives targeted at coal miners and warehouse staff as evidence that direct financial support provides more stability than government job retraining efforts.
Yang concluded that Congress must reform tax laws to ensure human workers stay competitive as software agents become more advanced. Since current tax structures subsidize a technology poised to replace millions of jobs, Yang emphasized that establishing fair and neutral tax policies is critical for managing the ongoing digital evolution of the labor market. Policymakers are actively reviewing legislative proposals to address automation’s disruption during upcoming congressional sessions.