NEW YORK / RankWire.AI / — During a CNBC interview on Tuesday, Andrew Yang, co-founder of the Forward Party, called for a fundamental overhaul of the current tax system, advocating for a shift from human payroll taxes to direct levies on artificial intelligence. Yang expressed concern that existing federal tax incentives are supporting automation that could displace millions of workers, urging policymakers to create a more equitable distribution of fiscal responsibilities between human employees and algorithmic systems.
In the interview, Yang emphasized that under current tax laws, companies pay substantial payroll taxes and healthcare costs for human workers. In contrast, firms deploying artificial intelligence face no comparable labor taxes, reducing their operational expenses for automated labor options. Noble Mobile’s CEO pointed out that the present legal framework subtly encourages corporate decision-makers to accelerate automation across key economic sectors.
Andrew Yang Warns That Public Funds Are Supporting a Technology That Will Displace Millions
Yang suggested implementing a targeted policy shift that would reallocate financial burdens from traditional human payroll taxes to automated compute tokens and AI revenue streams. Citing recent remarks by Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI services, Yang argued that taxing interactions with automated software offers a practical way to balance market dynamics. He added that revenue generated from an AI tax should be redistributed directly to citizens as universal cash dividends, rather than funneling funds into legacy retraining programs.
This policy discussion takes place amid rising economic concerns about automation impacting jobs across the United States. A joint survey from CNBC and Generation Lab revealed that 45 percent of young Americans aged 18 to 34 believe artificial intelligence will harm their long-term career prospects. Additionally, analysis from Bridgewater Associates estimates that automated technology could threaten roughly 18 percent of U.S. jobs over the next five years.
Customer Service Jobs Facing Rapid Automation and Industry Changes
Data from the U.S. Bureau of Labor Statistics shows that approximately 2.9 million workers are employed in customer service departments nationwide, making it one of the first sectors experiencing swift automation. Yang warned that government-led retraining efforts have historically failed to effectively transition displaced workers into new careers. He pointed to past initiatives supporting coal miners and warehouse staff as evidence that direct financial support is more effective than federal job programs for maintaining stability.
Yang concluded that legislative reforms are necessary to amend tax policies so that human workers stay competitive as software agents rapidly advance. Since current tax systems subsidize a technology likely to replace millions of jobs, he stressed that establishing neutral and fair tax policies is crucial to managing the ongoing digital transformation of the labor market. Policymakers are actively reviewing proposed legislative strategies to address automation-related disruptions in upcoming congressional sessions.