Bezos argues for zero income tax for lower earners

Bezos wants – Jeff Bezos says the bottom half of U.S. earners should pay no federal income tax, arguing working people face too much pressure despite contributing only a small share of tax revenue. He uses a nurse in Queens making $75,000 a year as his example, then widens

When Jeff Bezos talks about taxes, he doesn’t start with spreadsheets. He starts with a nurse in Queens paying more than $1,000 a month in taxes.

In a recent interview with CNBC, the Blue Origin owner argued that the bottom half of U.S. earners should pay no income tax at all. “The bottom half of income earners in this country pay only 3% of the taxes,” Bezos said. “I think it should be zero.”

He framed it as a question of affordability and basic fairness—why someone working for a living should be squeezed further.

“Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?” he asked. “To me, it’s kind of absurd that we’re doing this. We shouldn’t be asking this nurse in Queens to send money to Washington. They should be sending her an apology. It really makes no sense.”

Bezos did not lay out his exact calculations. But the direction of his argument was clear: federal income taxes could be eliminated for the lowest earners, with the idea that the financial burden on the government would be limited.

Workers in the U.S. are generally required to pay federal income tax. Social Security. and Medicare. and in most states. state income tax as well—costs that can add up to thousands of dollars. Since the federal system is progressive, higher earners typically pay a larger share of their income in federal taxes. In 2023. the bottom half of taxpayers—those making roughly under $54. 000—accounted for about 12% of total adjusted gross income. but they paid just 3% of all federal income taxes. according to IRS data analyzed by the Tax Foundation. The average household in that group paid about $913 in federal income tax. When refundable tax credits are factored in. the bottom 40% of taxpayers already pay effectively no federal income tax on average. CNBC reported.

Bezos said he plans to advocate for the proposal with political leaders and argued that exempting lower earners from federal income taxes would represent only “a small amount of money for the government.” “It is part of our job as citizens and as business leaders to share our ideas. ” Bezos said. “And this one would actually help people.”.

Still, the proposal arrives with a familiar political undertone: Bezos has maintained a warm relationship with President Donald Trump. And it comes amid continuing scrutiny of his own tax history.

A ProPublica investigation released in 2021 found that Bezos used tax strategies that reduced his tax burden in certain years. In 2007 and 2011, he paid no federal income tax at all, in part because investment losses outweighed reported income. Using Bezos’ wealth growth alongside his reported income and taxes paid between 2014 and 2018. ProPublica calculated his so-called ‘true tax rate’ at 0.98%.

Even with those controversies. Bezos said he is open to debate about what counts as a fair tax burden for the wealthy. The top 1% of taxpayers accounted for nearly 21% of total adjusted gross income in 2023 but paid roughly 38% of all federal income taxes that year. “We can argue about what the fair share is. That’s a policy debate, that’s okay,” Bezos said. “But the vilification is the thing that’s just the distraction.”.

His critique then shifted away from taxes and toward spending—specifically. what he called inefficiencies in New York City’s public school system. He offered a blunt comparison: “If we ran Amazon the way New York City runs their school system. your packages would take six weeks to arrive. We’d have to charge you a $100 delivery fee. And then when the package did finally arrive, it’d have the wrong item in it anyway.”.

“You could double the taxes I pay, and it’s not gonna help that teacher in Queens. I promise you,” he added.

Bezos’ remarks didn’t sit quietly. New York City mayor Zohran Mamdani pushed back on X, writing: “I know a few teachers in Queens who would beg to differ.”

Tax policy is now only one part of a broader argument Bezos is making: that the country’s problem may be less about who pays and more about where the money goes. He also tied his view back to a personal belief about impact—arguing that companies like Amazon and Blue Origin may ultimately matter as much for what they build as for what philanthropists give away.

Bezos has said he is committed to giving away most of his wealth in his lifetime. even though he has not signed The Giving Pledge. created by Warren Buffett. Bill Gates. and Melinda French Gates. encouraging billionaires to give away a majority of their fortunes in their lifetime or wills. He also acknowledged the difficulty of philanthropy effectively. echoing comments from Buffett and Elon Musk that giving massive sums well is often harder than it appears.

His ex-wife. MacKenzie Scott. already has “a sizable head start.” Since 2020. she has donated more than $26 billion to organizations focused on DEI. education. and disaster recovery. Forbes estimates that Bezos and his current wife, Lauren Sánchez Bezos, have donated roughly $4.7 billion over their lifetimes.

In the interview. Bezos argued that the long-term societal impact of building products and services may be more meaningful than philanthropy alone. “Everybody out there who’s a potential entrepreneur make sure you focus on that,” Bezos said. “You will be creating value for society if you’re successful at pleasing your customers.”.

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