Jeff Bezos Calls for Zero Federal Income Tax on Bottom Half of U.S. Earners

Amazon executive chairman Jeff Bezos told CNBC on Wednesday that the bottom half of American earners should owe nothing in federal income taxes. Bezos made the remarks during an appearance on CNBC’s “Squawk Box” with anchor Andrew Ross Sorkin.

Bezos Makes the Case for Zero Income Tax

Bezos pointed out that the top 1% of taxpayers currently account for roughly 40% of all federal income tax revenue. The bottom half, by contrast, contribute around 3%. That 3% share, he argued, is too small to meaningfully fund the government yet large enough to strain working families. He said that burden should simply be removed.

To illustrate his point, Bezos described a hypothetical nurse in New York City earning $75,000 a year. Sending a portion of that salary to Washington made no sense to him. The government, he suggested, should instead be expressing gratitude toward workers at that income level, not collecting from them.

What the Current Data Shows

Tax Foundation analysis of the most recent IRS figures shows the average federal income tax rate across all filers was 14.1% in 2023. The top 1% of earners paid an average rate of 26.3%. The bottom half paid an average of just 3.7%, roughly seven times lower. While the dollar amounts collected from lower earners are relatively modest, the share of take-home pay still represents a meaningful cost for households with limited financial cushion.

A Policy Debate Already Under Way

Bezos is not alone in raising this idea. Democratic lawmakers have introduced legislation moving in a similar direction. New Jersey Senator Cory Booker proposed the Keep Your Pay Act earlier this year, which would exempt the first $75,000 of income for joint filers from federal income tax. Booker framed the proposal as direct relief for families navigating elevated everyday costs. Separately, several Democratic-led states have been weighing higher taxes on top earners, reflecting a broader national debate about how the tax burden should be distributed across income levels.

Bezos made no mention of how a zero-rate policy at the bottom would be offset in terms of federal revenue. His comments landed as Congress continues debating the shape of any future tax legislation.

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