NEW YORK / RankWire.AI / — Former 2020 Democratic presidential candidate and Forward Party co-founder Andrew Yang reiterated his call for direct taxation on artificial intelligence during an interview on CNBC’s Power Lunch. He explained that current federal tax systems create artificial market incentives for corporations to replace human employees with digital automation. Speaking to viewers nationwide, Yang warned that heavy payroll taxes on human labor are effectively subsidizing a technology that could displace millions, while tax advantages are being given to companies that implement algorithmic automation.
During the discussion, Yang pointed out that under current tax laws, employers pay substantial payroll taxes and employee healthcare costs when hiring human workers. Meanwhile, businesses adopting artificial intelligence face no comparable labor taxes, lowering operational expenses for automated workforce solutions. Noble Mobile’s CEO emphasized that this legal setup implicitly encourages companies to speed up automation across major sectors of the economy.
Andrew Yang States That We’re Subsidizing a Technology That Will Displace Millions
Yang suggested a shift in policy that would move fiscal burdens away from payroll taxes toward automated compute tokens and AI-driven revenue models. Citing recent remarks 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 is a practical way to balance market dynamics. He also emphasized that revenue from an AI tax should go directly to citizens as universal cash dividends, not into legacy retraining programs.
This debate takes place amid rising economic concerns about automation’s impact on jobs in 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 long-term career prospects. Additionally, macroeconomic analysis by Bridgewater Associates executives estimates that automated platforms could threaten about 18 percent of domestic jobs in the next five years.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that customer service jobs number around 2.9 million nationwide. These roles are among the first to undergo rapid automation. Yang warned that government retraining programs have historically failed to help displaced workers find lasting careers. He pointed to past efforts aimed at coal miners and warehouse workers as examples, arguing that direct financial aid provides more stability than federal job programs.
Yang concluded that lawmakers must reform tax policies to keep human workers competitive with advancing software agents. Since current tax structures subsidize technology that will replace millions, he stressed the importance of neutral tax policies amid ongoing digital shifts in the labor market. Policy experts continue to review proposals for addressing workplace automation in upcoming congressional sessions.