Jeff Bezos Calls for Zero Income Tax on Bottom Half of Earners

Amazon Executive Chairman Jeff Bezos told CNBC on Wednesday that the bottom half of American earners should pay nothing in federal income taxes, describing their current share of the tax burden as unnecessary and unfair.

Bezos Makes the Case for Zero Income Tax

Bezos made the remarks on CNBC’s Squawk Box, speaking with anchor Andrew Ross Sorkin. He noted that the top 1% of taxpayers account for roughly 40% of all federal income tax revenue, while the bottom half contribute about 3%. That 3% figure, he argued, should be zero.

To illustrate his point, Bezos described a hypothetical nurse earning $75,000 a year in Queens. He said the government should not be collecting taxes from that worker at all. He added that he would personally advocate for the change, though he stopped short of outlining any legislative path forward.

Bezos is currently the world’s fourth-wealthiest individual, with a net worth of approximately $269 billion according to Forbes.

What the Numbers Actually Show

According to Tax Foundation analysis of IRS data, the bottom half of taxpayers had adjusted gross income of just under $54,000 in 2023. That same year, households in the top 1% earned at least $676,000. The average federal income tax rate across all filers was 14.1% in 2023. The top 1% paid an average of 26.3%, compared to 3.7% for the bottom half. In total, households in the bottom half paid an average of $913 each in federal income taxes that year. Notably, when refundable tax credits are factored in, the bottom 40% of filers already owe no net income tax on average.

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Legislative Backdrop and the K-Shaped Economy

Bezos’s remarks land amid a broader national debate over tax equity. Democratic Senator Corey Booker of New Jersey recently introduced the Keep Your Pay Act, which would make the first $75,000 of household income tax-free for joint filers. Meanwhile, several Democratic-led states are exploring higher levies on top earners.

The comments also arrive against a difficult economic backdrop for lower-income households. The so-called K-shaped recovery continues to widen, with higher-income Americans benefiting from strong asset prices while lower-income families face persistent cost pressures. Research from the Federal Reserve Bank of New York has pointed to the expiration of pandemic-era support programs as a key turning point in that divergence.

Also Read: What a K-Shaped Recovery Means for Consumer Spending

Spotlight on Tax Fairness

The intervention from one of the world’s richest individuals is likely to reignite debate about who bears the cost of government. Bezos offered no funding mechanism to replace lost revenue, leaving the harder fiscal questions unanswered. Lawmakers on both sides of the aisle have floated versions of lower-earner tax relief, but no proposal has reached a floor vote.

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