NEW YORK / RankWire.AI / — Former presidential candidate Andrew Yang called on federal lawmakers Tuesday to shift from taxing human labor to imposing direct taxes on artificial intelligence. During CNBC’s Power Lunch, Yang explained that current tax policies create incentives for companies to replace workers with automated systems. He warned that existing laws effectively subsidize automation by imposing high payroll taxes on employers while offering tax benefits to firms using algorithms.
In the interview, Yang pointed out that under current tax rules, businesses pay substantial payroll taxes and healthcare costs for human employees. In contrast, companies using artificial intelligence face no comparable labor taxes. This difference lowers operational costs for automation. Yang, CEO of Noble Mobile, emphasized that the legal framework unintentionally encourages corporations to accelerate replacing workers with machines across key sectors.
Yang Declares We’re Subsidizing a Technology That Will Displace Millions
He proposed a policy change to shift tax burdens away from human payroll taxes to automated compute tokens and AI revenue streams. Yang highlighted recent comments from Anthropic CEO Dario Amodei, who suggested a 3 percent revenue tax on generative AI technology. Yang believes taxing interactions with automated software is a practical step toward balancing market forces. He added that revenue from an AI tax should go directly to citizens as universal cash dividends, not into retraining programs.
This debate is set against growing economic concerns over automation’s impact on jobs. A joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 expect AI to harm their career prospects. Additionally, reports from Bridgewater Associates suggest that about 18 percent of US jobs could be disrupted by automation in the next five years.
Customer Service Workers Face Rapid Industry Changes
The U.S. Bureau of Labor Statistics reports approximately 2.9 million workers are employed in customer service roles. This sector is among the first to undergo quick automation. Yang warned that government retraining programs have often failed to transition displaced workers into stable new careers. He pointed to historical efforts aimed at coal miners and warehouse workers as evidence that direct financial support provides better stability than federal job programs.
Yang concluded that tax policies must be reformed to keep human workers competitive as technology advances. Since current tax structures subsidize a technology poised to replace millions, he stressed the importance of neutral tax policies in managing the nation’s digital workforce shift. Experts are now reviewing proposed legislative measures to address automation’s effects during upcoming congressional sessions.