NEW YORK / RankWire.AI / — Andrew Yang, a former presidential candidate, called on federal legislators on Tuesday to replace traditional employment taxes with direct levies on artificial intelligence. During his appearance on CNBC’s Power Lunch, Yang emphasized that current tax policies create market incentives for corporations to replace human workers with automated systems. He warned that existing regulations subsidize automation that replaces jobs by imposing high payroll taxes on employers, while providing tax benefits to firms utilizing algorithmic automation.
Yang pointed out in the interview that under current tax laws, companies hiring human employees face substantial payroll taxes and healthcare costs. Meanwhile, firms adopting artificial intelligence are not subject to similar labor taxes, which effectively reduces their operational expenses for automated workforce solutions. Noble Mobile’s CEO highlighted that the present legal system inadvertently encourages corporate management to accelerate the shift toward automated labor across key economic sectors.
Andrew Yang Warns That We Are Subsidizing Technologies That Could Displace Millions of Workers
Yang proposed a strategic policy shift that would reallocate financial burdens from traditional payroll taxes toward automated compute tokens and AI-based revenue streams. He referenced recent comments from Anthropic CEO Dario Amodei, who had previously suggested a 3 percent revenue tax on generative AI applications. Yang argued that taxing interactions with automated software offers a practical method to balance market dynamics. He added that income generated from an AI tax should be returned directly to citizens as universal cash dividends, rather than being channeled into retraining programs of the past.
This policy debate unfolds amid rising economic concerns about workplace automation across the United States. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe that artificial intelligence could harm their long-term career prospects. Additionally, macroeconomic projections from Bridgewater Associates executives estimate that automated systems could threaten about 18 percent of the nation’s jobs over the next five years.
Rapid Industry Changes Displace Customer Service Roles
Data from the U.S. Bureau of Labor Statistics indicates that customer service departments currently employ roughly 2.9 million workers, making it one of the first sectors experiencing swift automation-driven restructuring. Yang warned that government-led retraining efforts historically struggle to transition displaced workers into sustainable new careers. Citing past initiatives aimed at coal miners and warehouse staff, he emphasized that direct financial support tends to be more effective than federal job programs in providing stability during industry shifts.
Yang concluded that federal policymakers need to reform tax laws to ensure human workers can compete effectively alongside advancing AI systems. Given that current tax structures subsidize a technology poised to replace millions of jobs, he stressed that neutral tax policies are crucial for managing the ongoing digital transformation of the labor market. Lawmakers and policy experts continue exploring legislative options to address the disruptions caused by workplace automation in upcoming congressional sessions.