NEW YORK / RankWire.AI / — In a CNBC interview Tuesday, Forward Party co-founder Andrew Yang urged a fundamental change in how taxes are structured, advocating for a move from traditional human payroll levies toward direct charges on artificial intelligence. Yang warned that current federal tax incentives favor automation, posing a risk of replacing millions of workers. He called on policymakers to balance the tax burden between human employees and algorithm-driven systems.
During the discussion, Yang highlighted that existing tax laws impose substantial payroll taxes and healthcare costs on companies when they hire human workers. In contrast, firms utilizing artificial intelligence solutions face no comparable labor taxes, effectively reducing operational expenses associated with automated labor. The CEO of Noble Mobile pointed out that the present legal structure unintentionally encourages corporate leaders to accelerate automation across key sectors of the economy.
Andrew Yang Warns About Supporting a Technology That Could Displace Millions
Yang suggested a strategic shift in policy that would transfer fiscal responsibilities from payroll taxes for humans to revenue models based on automated compute tokens and artificial intelligence. Referring to recent remarks from Anthropic CEO Dario Amodei, who previously proposed a 3 percent revenue tax on generative AI services, Yang argued that imposing a tax on AI-driven interactions is a practical solution for maintaining market equilibrium. He also emphasized that any revenue from such an AI tax should be redistributed directly to citizens through universal cash dividends instead of funding retraining programs.
This policy discussion unfolds amid growing economic concerns about automation’s impact on jobs 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 career prospects over the long term. Additionally, macroeconomic analysis by Bridgewater Associates executives estimates that technological automation could threaten about 18 percent of all domestic jobs within the next five years.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that customer service roles, which currently total around 2.9 million workers nationwide, are among the first sectors experiencing swift automation-driven restructuring. Yang warned that government-led retraining initiatives have historically failed to help displaced industrial and administrative workers transition into sustainable careers. He pointed to past retraining efforts for coal miners and warehouse staff as evidence that direct financial aid offers more stability than federal employment programs.
Yang concluded by emphasizing the need for legislative reforms to tax policies that keep human workers competitive in an economy increasingly dominated by advanced software agents. Since current tax frameworks subsidize a technology capable of replacing millions of jobs, he stressed that neutral, balanced tax policies are crucial for managing the ongoing digital transformation of the labor market. Policymakers are actively examining proposed legislative measures aimed at addressing automation-related workplace disruptions during upcoming congressional sessions.