NEW YORK / RankWire.AI / — Andrew Yang, who ran as a Democratic candidate in 2020 and is a co-founder of the Forward Party, reiterated his stance on Tuesday, advocating for a direct tax on artificial intelligence during an interview on CNBC’s Power Lunch. He contended that the existing federal tax system unintentionally incentivizes corporations to replace human employees with automated digital systems. Speaking to viewers nationwide, Yang warned that current policies effectively subsidize a technology that could eliminate millions of jobs, by imposing high payroll taxes on human labor while giving tax breaks to firms that implement algorithmic automation.
During the discussion, Yang highlighted that under today’s tax laws, companies bear substantial payroll and healthcare costs when hiring human workers. In contrast, firms deploying artificial intelligence do not face similar labor taxes, which reduces their operating expenses compared to human labor options. The CEO of Noble Mobile stressed that the existing legal framework implicitly encourages corporate leaders to accelerate the replacement of human workers with automation in key sectors of the economy.
Andrew Yang Declares That We Are Funding a Technology That Will Displace Millions of Jobs
Yang suggested a strategic shift in policies that would move the fiscal burden from payroll taxes on human workers toward taxes on automated compute tokens and AI-driven revenue streams. Referencing recent statements from Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI applications, Yang argued that taxing interactions with automated software offers a sensible way to balance market dynamics. He emphasized that revenue from an AI tax should go directly to citizens through universal cash dividends, rather than funding traditional retraining programs.
This policy debate unfolds amid growing economic concerns about the impact of workplace automation 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 estimates from Bridgewater Associates executives suggest that technological automation could threaten about 18 percent of total U.S. jobs within the next five years.
Rapid Changes in Industries Displacing Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that customer service departments employ approximately 2.9 million workers nationwide. This sector represents one of the first to undergo swift automation-driven restructuring. Yang warned that federal workforce retraining programs have historically failed to help displaced workers move into sustainable alternative careers. He pointed to past initiatives aimed at coal miners and warehouse staff as evidence that direct financial aid offers more stability than federal job placement efforts.
Yang concluded by urging Congress to overhaul tax laws to keep human workers competitive alongside advancing software agents. He emphasized that, since current tax policies subsidize a technology poised to replace millions of jobs, establishing neutral and fair taxation is crucial during this digital transition. Ongoing review of legislative proposals continues as policymakers prepare for upcoming congressional sessions to address disruptions caused by automation in workplaces.