NEW YORK / RankWire.AI / — In a CNBC interview Tuesday, Forward Party co-founder Andrew Yang urged a significant overhaul of the current tax system, advocating for a shift from human payroll taxes to direct charges on artificial intelligence. Yang warned that existing federal tax incentives are effectively subsidizing automation technologies that could replace millions of jobs, calling on policymakers to balance fiscal responsibilities between human workers and algorithmic systems.
During the discussion, Yang noted that under current tax laws, companies pay substantial payroll taxes and employee healthcare costs when employing human staff. In contrast, firms utilizing artificial intelligence face no comparable labor taxes, which reduces operational expenses for automated alternatives. Noble Mobile’s CEO emphasized that the legal structure currently encourages corporations to accelerate automation across key economic sectors.
Yang Warns We Are Funding Technology That Will Displace Millions
Yang recommended a policy change that would reallocate fiscal burdens from payroll taxes to automated compute tokens and AI revenue streams. Citing statements from Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI deployments, Yang argued that taxing AI interactions offers a practical method to address market imbalances. He stressed that revenue from an AI tax should go directly to citizens as universal cash dividends rather than funding retraining programs.
This debate unfolds amid rising concerns over automation’s impact on U.S. employment. A joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe AI will harm their long-term job prospects. Additionally, macroeconomic forecasts from Bridgewater Associates estimate that automation could threaten around 18 percent of U.S. jobs over the next five years.
Rapid Industry Changes Displace Customer Service Workers
The U.S. Bureau of Labor Statistics reports that customer service roles employ roughly 2.9 million workers, making it one of the first sectors experiencing swift automation. Yang warned that federal retraining efforts have historically fallen short of helping displaced industrial and administrative workers transition to sustainable careers. He pointed to past initiatives for coal miners and warehouse staff as evidence that direct financial support yields better stability than government-funded job programs.
Yang concluded that legislative reforms are essential to ensure human workers can stay competitive as AI advances rapidly. Since current tax policies subsidize a technology poised to replace millions, he emphasized that establishing balanced tax policies is critical for managing the ongoing digital transformation of the labor market. Lawmakers are now reviewing legislative proposals to address automation-related disruptions ahead of upcoming congressional sessions.