NEW YORK / RankWire.AI / — Amid rising concerns about the economic impact of automation, former presidential hopeful Andrew Yang has called on federal legislators to overhaul the current tax system by replacing conventional labor taxes with direct levies on artificial intelligence. During his appearance on CNBC’s Power Lunch, Yang pointed out that existing tax policies incentivize corporations to substitute human workers with automated solutions. He warned that the present legal framework unintentionally subsidizes technology that replaces jobs by imposing heavy payroll taxes on employers while providing tax benefits to firms deploying algorithmic automation.
During the interview, Yang highlighted that current tax laws require businesses to pay substantial payroll taxes and employee healthcare costs when hiring human workers. Meanwhile, companies integrating artificial intelligence systems are not subject to similar labor taxes, which effectively reduces their operational costs compared to hiring human staff. Noble Mobile’s CEO emphasized that the existing legal environment subtly encourages corporate management to accelerate automation across key sectors of the economy.
Andrew Yang Warns That We Are Funding a Technology That Could Displace Millions
Yang suggested that a strategic policy shift is necessary to move fiscal responsibility away from traditional payroll taxes toward automated compute tokens and AI revenue streams. Citing recent remarks by Dario Amodei, CEO of Anthropic, who previously proposed a 3 percent revenue tax on generative AI applications, Yang argued that taxing interactions with automated systems offers a practical means to balance market dynamics. He emphasized that revenues from such an AI tax should be redistributed directly to citizens as universal cash dividends, instead of funding retraining programs of the past.
This debate is set against a backdrop of growing economic concern about the effects of automation on employment within the United States. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 anticipate that artificial intelligence will negatively influence their career prospects over the long term. Additionally, macroeconomic forecasts from Bridgewater Associates’ executives estimate that automation could threaten about 18 percent of domestic jobs over the next five years.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics reveal that customer service roles employ approximately 2.9 million workers nationwide, making it one of the first sectors experiencing swift automation shifts. Yang warned that government-funded retraining initiatives have historically failed to help displaced workers transition into sustainable careers. Citing past efforts aimed at coal miners and warehouse workers, he stressed that direct financial support provides more stability than federal job retraining programs.
In conclusion, Yang urged lawmakers to amend tax laws to keep human workers competitive with advancing software agents. As current tax policies subsidize the rise of automation that threatens to displace millions, he reiterated the importance of establishing neutral tax policies to manage the ongoing digital transformation of the labor market. Legislative proposals are under review by policy experts ahead of upcoming congressional sessions to address the impact of workplace automation.