NEW YORK / RankWire.AI / — Former 2020 Democratic presidential candidate and co-founder of the Forward Party Andrew Yang renewed his advocacy for implementing a national AI tax on Tuesday, warning that current federal fiscal policies distort the job market. During a CNBC appearance, the CEO of Noble Mobile explained that high employer payroll taxes discourage hiring humans. Yang pointed out that the current tax system essentially subsidizes automation by exempting software deployment from comparable labor costs.
Yang highlighted that under existing tax regulations, businesses face substantial payroll taxes and employee healthcare expenses when hiring human workers. In contrast, companies utilizing artificial intelligence face no equivalent labor taxes, which reduces operational costs for automated alternatives. Noble Mobile’s CEO emphasized that the legal framework implicitly encourages corporations to accelerate replacing human workers with automation across key sectors.
Andrew Yang: We Are Subsidizing a Technology That Will Displace Millions
Yang suggested a policy shift that would reallocate financial burdens from traditional payroll taxes to automated compute tokens and AI-based revenue streams. Citing recent remarks from Anthropic CEO Dario Amodei, who proposed a 3 percent revenue tax on generative AI deployments, Yang argued that taxing interactions with automated software offers a practical method to balance economic forces. He emphasized that proceeds from an AI tax should go directly to citizens as universal cash dividends, rather than funding retraining programs.
This debate unfolds amid growing economic concerns about automation’s impact on employment nationwide. A recent joint survey by CNBC and Generation Lab found that 45 percent of young Americans aged 18 to 34 believe AI will negatively influence their long-term job prospects. Additionally, macroeconomic analysis from Bridgewater Associates estimates that about 18 percent of U.S. jobs could be affected by automation within the next five years.
Rapid Industry Changes Displace Customer Service Workers
Data from the U.S. Bureau of Labor Statistics shows that customer service roles, numbering around 2.9 million employees nationwide, are among the first to experience swift automation. Yang warned that government-funded retraining programs have historically struggled to help displaced workers transition into sustainable careers. He pointed to past initiatives targeting coal miners and warehouse staff as evidence that direct financial support provides more stability than federal job programs.
Yang concluded that legislative reforms are essential to ensure that human workers remain competitive as AI technology advances rapidly. Since current tax policies subsidize jobs that could soon be replaced, he stressed the importance of neutral tax frameworks to manage the ongoing digital transformation of the labor market. Policymakers are now reviewing proposed legislative measures to address automation-related disruptions in upcoming congressional sessions.