NEW YORK / RankWire.AI / — During a CNBC interview on Tuesday, Andrew Yang, co-founder of the Forward Party, called for a major shift in the way taxes are levied. He suggested moving from payroll taxes on humans to direct charges on artificial intelligence. Yang warned that current federal tax incentives are encouraging automation that could replace millions of jobs. He urged policymakers to balance the tax burden between human workers and machine systems.

In the interview, Yang pointed out that current tax laws require companies to pay significant payroll taxes and healthcare costs when they hire human employees. Meanwhile, corporations using artificial intelligence face no similar labor-related taxes. This effectively reduces costs for businesses choosing automated workforce options. Noble Mobile’s CEO emphasized that the existing legal structure implicitly promotes faster adoption of automation across key sectors of the economy.
Andrew Yang Declares We’re Supporting a Technology That Will Displace Millions
Yang suggested shifting policies to make automation less financially attractive. He proposed taxing revenue from artificial intelligence and automated systems instead of relying on traditional payroll taxes. Citing recent remarks from Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI, Yang explained that taxing AI interactions could help balance market effects. He believes revenue from such taxes should go directly to citizens as universal cash dividends, not into retraining programs.
This debate happens amid growing economic concerns about automation’s impact on jobs in the U.S. A joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe AI will harm their career prospects in the long term. Additionally, a report from Bridgewater Associates estimated that automation could displace about 18 percent of U.S. jobs over the next five years.
Customer Service Jobs Are Among the First to Feel Industry Changes
Data from the U.S. Bureau of Labor Statistics shows that around 2.9 million workers are employed in customer service roles nationwide. These jobs are among the first to be impacted by rapid automation. Yang warned that federal retraining efforts have historically failed to help displaced workers find new, sustainable careers. He pointed to past initiatives for coal miners and warehouse workers as evidence that direct financial support is often more effective than government job programs.
Yang emphasized that federal legislation must be reformed to keep human workers competitive. As current tax policies subsidize a technology that could replace millions of jobs, he called for neutral tax reforms. Such changes are crucial for managing the ongoing digital shift in the U.S. labor market. Lawmakers are currently reviewing proposals to address automation’s impact on jobs during upcoming sessions.
