NEW YORK / RankWire.AI / — Andrew Yang, who was a candidate in the 2020 Democratic presidential race and is a co-founder of the Forward Party, reiterated his stance on taxing artificial intelligence directly during a CNBC’s Power Lunch interview on Tuesday. He argued that the current federal tax system inadvertently incentivizes corporations to replace human workers with automated digital systems by maintaining high payroll taxes on labor and offering tax benefits to companies that implement algorithms. Yang expressed concern that this approach amounts to government support for a technology that could displace millions of jobs.
During the discussion, Yang highlighted that existing tax policies impose substantial payroll taxes and healthcare costs on businesses hiring human employees. In contrast, companies investing in artificial intelligence face no such labor-related taxes, reducing their operational expenses for automated workforces. Noble Mobile’s CEO emphasized that the legal framework implicitly encourages corporate leadership to accelerate automation across major sectors of the economy.
Andrew Yang Warns of Government Support for Job-Cutting Technologies
Yang proposed a shift in policy focus that would reallocate fiscal burdens from payroll taxes to revenue-based taxes on artificial intelligence and automated compute tokens. He pointed to recent remarks by Dario Amodei, CEO of Anthropic, who previously suggested a 3 percent revenue tax on generative AI systems. Yang argued that taxing interactions with automated software offers a practical method for balancing market forces, and that revenue from such taxes should be redistributed directly to citizens through universal cash dividends rather than used for traditional retraining initiatives.
This debate unfolds amid growing economic concern over the impact of automation on employment across the United States. A joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe artificial intelligence will adversely affect their long-term career opportunities. Additionally, research by Bridgewater Associates estimates that about 18 percent of domestic jobs could be affected by automation within the next five years.
Automation’s Impact on Customer Service and Industry Evolution
Based on data from the U.S. Bureau of Labor Statistics, roughly 2.9 million workers are employed in customer service roles nationwide, making it one of the first sectors to face significant automation shifts. Yang warned that government programs aimed at workforce retraining have historically failed to help displaced workers find sustainable new careers. He referenced past initiatives targeting coal miners and warehouse staff as evidence that direct financial assistance tends to offer more stability than federal job retraining efforts.
Yang concluded by emphasizing the urgent need for federal legislation to reform tax policies so that human workers can stay competitive alongside rapidly advancing AI systems. He reiterated that current tax structures subsidize a technology poised to replace millions, making the establishment of neutral tax policies essential during this ongoing digital transformation. Policymakers are actively reviewing legislative proposals to address workplace automation and its implications in upcoming congressional sessions.