Jeff Bezos Calls for Zero Income Tax on Bottom Half of Earners
Amazon Executive Chairman Jeff Bezos told CNBC Wednesday that the bottom half of American earners should pay zero federal income tax, describing the current arrangement as fundamentally unfair to working people.
Appearing on CNBC’s *Squawk Box* with anchor Andrew Ross Sorkin, Bezos argued that the roughly 3% share of federal income tax revenue contributed by the bottom half of taxpayers amounts to very little for the government. He said eliminating that burden entirely would be the right move.
A Nurse in Queens and a $269 Billion Fortune
Bezos used the example of a healthcare worker earning $75,000 annually to illustrate his point. Someone in that position, he suggested, deserves relief rather than a tax bill. He said he would actively advocate for such a change, though he stopped short of outlining any specific legislative pathway.
The contrast between Bezos and the workers he is championing is stark. He is the world’s fourth-wealthiest individual, with a net worth near $269 billion, according to Forbes. The bottom half of US taxpayers reported an adjusted gross income of just under $54,000 in 2023, per Tax Foundation data drawing on the most recent IRS statistics. Households in the top 1% earned at least $676,000 that same year.
Also Read: What a K-Shaped Economy Means for Markets
Background: The Tax Debate Taking Shape
The top 1% of taxpayers currently shoulder around 40% of all federal income tax revenue and face an average rate of 26.3%. The bottom half pays an average rate of 3.7%, translating to roughly $913 per household annually, according to the Tax Foundation.
Bezos’s remarks arrive as several Democratic-led states push for higher levies on the wealthy. At the federal level, New Jersey Senator Corey Booker has already introduced the Keep Your Pay Act, which would exempt the first $75,000 of household income from federal income tax for joint filers. Booker framed the proposal as a direct financial lifeline for working families facing rising everyday costs.
Also Read: Booker Introduces Keep Your Pay Act to Shield Working Families From Income Tax
Low Earners Bear Outsized Inflation Burden
The push to ease taxes on lower earners comes against a difficult economic backdrop. Researchers describe a so-called K-shaped recovery in which higher-income households benefit from wage growth and asset appreciation while lower earners absorb disproportionate cost pressures. Federal Reserve Bank of New York analysis has linked the end of pandemic-era subsidies to a widening gap in financial stability. Rising fuel costs are adding further strain, as lower earners spend a larger share of income on gasoline than their wealthier counterparts.
Bezos did not specify a funding mechanism for the proposed tax relief. Analysts expect any serious legislative effort to face significant debate over how to offset lost revenue.
