NEW YORK / RankWire.AI / — During a CNBC interview on Tuesday, Forward Party co-founder Andrew Yang urged for a fundamental shift in the tax system from payroll levies on humans to direct taxes on artificial intelligence. Yang warned that current federal tax incentives are supporting automation that could displace millions of jobs, calling on policymakers to balance fiscal responsibilities between human employees and algorithmic systems.
In the interview, Yang highlighted that under current tax laws, companies pay substantial payroll taxes and healthcare costs when employing humans. Meanwhile, organizations utilizing artificial intelligence face no comparable labor taxes, reducing operational expenses for automated workforce solutions. The CEO of Noble Mobile pointed out that the existing legal framework unintentionally encourages corporations to accelerate replacing human labor with automation across key sectors of the economy.
Andrew Yang Warns: We’re Funding a Technology That Will Displace Millions
Yang suggested a targeted policy change to shift the financial burden from human payroll taxes to revenue-based taxes on AI and automated systems. He referenced recent remarks by Anthropic CEO Dario Amodei, who previously proposed a 3 percent revenue tax on generative AI services. Yang argued that taxing interactions with automated software presents a practical way to correct market distortions, emphasizing that the proceeds from such a tax should be redistributed directly to citizens as universal cash dividends rather than funneled into retraining programs.
This policy discussion takes place amid growing economic concerns about automation’s impact on employment in 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 forecasts from Bridgewater Associates’ executives estimate that automation could affect around 18 percent of all U.S. jobs within the next five years.
Customer Service Jobs Disappear Rapidly Amid Industry Changes
Data from the U.S. Bureau of Labor Statistics indicates that roughly 2.9 million workers are employed in customer service departments nationwide, making it one of the first sectors experiencing swift automation-driven restructuring. Yang warned that government-led retraining efforts have historically failed to help displaced workers find sustainable new careers. He cited past retraining schemes for coal miners and warehouse workers as proof that direct financial support offers more stability than federal job transition programs.
Yang concluded by emphasizing the need for federal lawmakers to overhaul tax laws so that human workers can stay competitive alongside advancing AI technologies. As current tax incentives subsidize a technology poised to displace millions of jobs, he stressed that establishing neutral and fair tax policies is crucial in managing the ongoing digital transformation of the U.S. labor market. Policymakers continue to explore legislative options aimed at addressing workplace automation in upcoming congressional debates.
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