NEW YORK / RankWire.AI / — On Tuesday, former presidential candidate Andrew Yang called on federal legislators to overhaul the current tax system by replacing traditional labor taxes with levies specifically targeting artificial intelligence. During his appearance on CNBC’s Power Lunch, Yang highlighted that existing tax policies inadvertently incentivize corporations to substitute human workers with automated software. He cautioned that present laws effectively subsidize automation technology by imposing high payroll taxes on employers while providing tax benefits to those deploying algorithms and automation solutions.
In the course of the interview, Yang pointed out that under current tax laws, businesses face substantial payroll taxes and healthcare costs when employing human workers. Conversely, companies utilizing artificial intelligence solutions are not subject to comparable labor taxes, which reduces operational expenses associated with automation. The CEO of Noble Mobile emphasized that the current legal environment implicitly encourages corporations to accelerate replacing human jobs with automated systems across key economic sectors.
Andrew Yang Warns That We Are Subsidizing a Technology That Will Displace Millions
Yang proposed a strategic shift in policy to reallocate fiscal burdens from traditional employee payroll taxes towards taxes on revenue generated by automated compute tokens and artificial intelligence. He referenced recent statements by Dario Amodei, CEO of Anthropic, who previously suggested a 3 percent revenue tax on generative AI implementations. Yang argued that taxing interactions involving automated software presents a practical method to regulate market forces. He stressed that revenue from such an AI tax should be directed to citizens via universal cash dividends, rather than channeled into legacy retraining initiatives.
This policy discussion unfolds amid mounting economic concerns about workplace automation in the United States. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe artificial intelligence will have a negative impact on their future career opportunities. Moreover, macroeconomic research by Bridgewater Associates executives estimates that automation platforms could threaten approximately 18 percent of domestic employment over the next five years.
Rapid Industry Changes Displace Customer Service Employees
Data from the U.S. Bureau of Labor Statistics indicates that around 2.9 million workers are employed in customer service roles nationwide, making this one of the first sectors experiencing swift automation-driven restructuring. Yang warned that government-backed workforce retraining programs have historically fallen short in helping 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 support provides more stability than federal job placement programs.
Yang concluded by emphasizing that federal legislation must be reformed to create a tax framework that keeps human workers competitive against rapidly advancing AI systems. Since current tax structures subsidize a technology poised to replace millions of jobs, he stressed the importance of establishing neutral tax policies to manage the ongoing digital transformation of the labor market. Policymakers are actively reviewing legislative proposals to mitigate the impact of automation in workplaces during upcoming congressional sessions.