Jeff Bezos Proposes Zero Federal Tax for Bottom 50% of American Earners
Bezos proposed major tax relief while advocating a simpler US tax structure.
Jeff Bezos has called for a major overhaul of the United States federal tax system, arguing that the bottom half of American taxpayers should pay no federal income tax. Speaking in an interview with CNBC International on Wednesday, the Amazon founder said he would support reducing the tax contribution of lower-income households from roughly 3% of total federal income tax collections to zero.
Bezos made the remarks during a discussion with journalist Andrew Ross Sorkin, who noted that the top 1% of taxpayers contribute around 40% of all federal income tax revenue in the US, while the bottom half account for only about 3%. Responding to the figures, Bezos said, “I think it should be zero, and not 3%,” arguing that the financial burden on lower-income earners outweighs the relatively small revenue generated for the federal government.
To explain his position, Bezos cited the example of a healthcare worker earning around $75,000 annually. “We shouldn't be asking this nurse in Queens to send money to Washington,” he said. “They should be sending her an apology. It really makes no sense.” He argued that many working Americans continue to struggle with rising living costs despite broader economic growth and strong performance among wealthier households.
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Bezos described the current economic environment as “a tale of two economies,” saying that while some Americans are prospering, many others are facing mounting affordability pressures. Concerns over inflation, fuel prices and housing costs have intensified in recent years, particularly after the expiration of several pandemic-era economic support programmes in the United States.
According to data compiled by the Tax Foundation using Internal Revenue Service statistics, the bottom half of US taxpayers reported adjusted gross income of around $54,000 in 2023 and paid an average effective federal income tax rate of 3.7%. In comparison, the top 1% of taxpayers earned at least $676,000 and paid an average federal income tax rate exceeding 26%.
The comments come amid renewed political debate in Washington over tax relief measures for middle- and lower-income Americans. Cory Booker has proposed the “Keep Your Pay Act,” which seeks to exempt the first $75,000 of income from federal income tax for many households. Bezos’ remarks are likely to add momentum to broader discussions around inequality, tax reform and affordability in the US economy.
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