NEW YORK / RankWire.AI / — Former presidential candidate Andrew Yang urged federal lawmakers Tuesday to replace traditional labor taxes with direct levies on artificial intelligence. Speaking on CNBC’s Power Lunch, Yang argued that current tax policy creates artificial market incentives for corporations to replace human staff with automated software. He warned that existing laws actively subsidize job-replacing technology by burdening employers with high payroll taxes while offering tax advantages to companies deploying algorithmic automation.
During the interview, Yang pointed out that under existing tax codes, enterprise employers pay significant payroll taxes and employee healthcare costs when hiring human staff. Conversely, corporate entities adopting artificial intelligence models face no equivalent labor taxes, effectively lowering operational costs for automated workforce alternatives. The chief executive officer of Noble Mobile emphasized that the current legal framework implicitly encourages corporate management to accelerate automated labor replacement across major economic sectors.
We’re Subsidizing a Technology That Will Replace Millions Andrew Yang Declares
Yang proposed a targeted policy pivot that would shift fiscal burdens away from traditional human payroll taxes toward automated compute tokens and artificial intelligence revenue models. Highlighting recent public statements from Anthropic Chief Executive Officer Dario Amodei, who previously floated a 3 percent revenue tax on generative AI deployments, Yang argued that taxing automated software interactions represents a pragmatic approach to balancing market forces. He noted that revenue generated from an artificial intelligence tax should be distributed directly to citizens as universal cash dividends rather than directed into legacy retraining programs.
The policy debate occurs against a backdrop of increasing economic anxiety regarding workplace automation across the United States. A recent joint survey conducted by CNBC and Generation Lab revealed that 45 percent of surveyed young Americans aged 18 to 34 expect artificial intelligence to negatively impact their long-term career prospects. Furthermore, macroeconomic analysis published by executives at Bridgewater Associates estimated that automated technological platforms could disrupt approximately 18 percent of total domestic jobs over the next five years.
Displaced Customer Service Personnel Experience Rapid Industry Shifts
According to data compiled by the U.S. Bureau of Labor Statistics, customer service departments across the country currently employ roughly 2.9 million workers, representing one of the initial operational areas undergoing rapid automated restructuring. Yang cautioned that government-sponsored workforce retraining programs historically failed to transition displaced industrial and administrative workers into sustainable alternative careers. He cited historical retraining initiatives aimed at coal miners and warehouse personnel as empirical evidence that direct financial support offers greater stability than federal job programs.
Yang concluded that federal lawmakers must reform statutory tax policies to ensure human workers remain economically competitive alongside rapidly advancing software agents. As we’re subsidizing a technology that will replace millions under current tax structures, Yang reiterated that establishing neutral tax policy remains essential to navigating the ongoing digital transformation of the national labor market. Policy experts continue reviewing proposed legislative mechanisms to address automated workplace disruption across upcoming congressional sessions.