NEW YORK / RankWire.AI / — During a CNBC interview on Tuesday, Andrew Yang, co-founder of the Forward Party, called for a fundamental change in the tax system, proposing that the current focus on human payroll taxes be redirected towards direct taxes on artificial intelligence. He expressed concern that existing federal tax incentives are encouraging automation by subsidizing practices that could replace millions of jobs, and urged policymakers to balance the fiscal responsibilities between human employees and algorithmic systems.
In the course of the discussion, Yang highlighted that under current tax laws, companies bear substantial payroll taxes and employee healthcare costs when hiring human workers. In stark contrast, companies that implement artificial intelligence systems do not face equivalent labor-related taxes, which effectively reduces the cost of deploying automated workforce solutions. The CEO of Noble Mobile pointed out that this legal environment implicitly promotes the accelerated adoption of automation across key economic sectors by corporate management.
Andrew Yang Warns That We Are Subsidizing Technologies That Will Displace Millions
Yang suggested a strategic policy change that would shift the financial burden from traditional payroll taxes for human workers to revenue-based models such as automated compute tokens and artificial intelligence earnings. Citing recent remarks from Dario Amodei, CEO of Anthropic, who previously proposed a 3 percent revenue tax on generative AI services, Yang argued that taxing automated software interactions is a practical solution to maintaining market balance. He emphasized that the revenue obtained from such a tax should be directly redistributed to citizens as universal cash dividends rather than funnelled into existing retraining programs.
This debate over fiscal policy unfolds amid growing economic concerns about the impact of automation on employment within the United States. A recent joint survey conducted by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe artificial intelligence will adversely affect their long-term career opportunities. Additionally, analysis by executives at Bridgewater Associates estimates that automation could threaten around 18 percent of all U.S. jobs over the next five years, creating a significant shift in the labor market.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics indicates that customer service departments across the nation employ approximately 2.9 million workers, making it one of the earliest sectors experiencing widespread automation-driven restructuring. Yang warned that government-led retraining initiatives have historically fallen short in helping displaced workers from industrial and administrative sectors transition into sustainable new roles. He pointed to past efforts aimed at retraining coal miners and warehouse workers as evidence that direct financial assistance provides more stability than federal job programs.
In closing, Yang stressed that federal legislators need to revise existing tax laws to maintain the economic competitiveness of human workers alongside rapidly evolving software agents. Since current tax structures effectively subsidize a technology that could eliminate millions of jobs, he reaffirmed that implementing neutral tax policies is crucial for managing the ongoing digital transformation of the U.S. labor market. Policy experts are actively reviewing legislative proposals to address the disruptions caused by automation in workplaces during upcoming congressional sessions.