NEW YORK / RankWire.AI / — In a CNBC interview Tuesday, Forward Party co-founder Andrew Yang urged a major overhaul of the current tax system. He called for shifting from payroll taxes for human workers to direct taxes on artificial intelligence. Yang warned that federal tax incentives now favor automation that could displace millions of jobs. He pushed policymakers to balance the fiscal responsibilities between human employees and algorithm-based systems.
During the discussion, Yang explained that current tax laws impose high payroll taxes and healthcare costs on companies hiring human staff. In contrast, firms using artificial intelligence face no comparable labor taxes. This effectively lowers the operational costs of automated workforce solutions. Noble Mobile CEO emphasized that the legal environment encourages companies to speed up automation in key economic sectors.
Andrew Yang Says We Are Funding a Technology That Will Displace Millions
Yang suggested a policy shift that would redirect financial burdens away from payroll taxes towards automated compute tokens and AI revenue streams. He pointed to recent remarks from Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI applications. Yang argued that taxing AI interactions is a practical way to align market forces. He also stressed that revenue from an AI tax should go directly to citizens as universal cash dividends, not into retraining programs.
This policy debate takes place amid growing economic fears about automation in U.S. workplaces. 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 long term. Additionally, macroeconomic analysis from Bridgewater Associates estimates that automation could threaten about 18 percent of U.S. jobs over the next five years.
Customer Service Workers Face Rapid Industry Changes
Data from the U.S. Bureau of Labor Statistics shows roughly 2.9 million people work in customer service nationwide. This sector is among the first to see rapid automation. Yang warned that government retraining programs have historically failed to help displaced workers find sustainable jobs. He pointed to past efforts for coal miners and warehouse workers as evidence. Direct financial support offers better stability than federal job schemes, he added.
Yang concluded that Congress must change tax laws to keep human workers competitive with advancing software agents. He emphasized that subsidizing a technology that could replace millions of jobs makes neutral tax policy essential. As automation threatens jobs, Yang stressed the importance of reforming tax policies to navigate the digital shift. Policymakers are currently reviewing legislative options to address workplace automation in upcoming sessions.