Jeff Bezos, founder of Amazon and Blue Origin, proposed that the bottom half of U.S. income earners should pay no federal income tax. He argued this group, which pays only 3% of total federal income taxes, should be exempt from such taxes to reduce financial pressure on working Americans. Bezos highlighted a nurse earning $75,000 annually as an example, questioning why she pays over $1,000 a month in taxes, calling the situation "absurd," according to fortune.com.
Bezos made his case during an interview with CNBC, emphasizing that the current tax burden on lower-income earners is disproportionate given their small contribution to total tax revenue. He suggested that instead of taxing these workers, the government should apologize to them. While he did not provide detailed calculations, the example cited includes federal income, Social Security, Medicare, and state income taxes, which collectively can amount to thousands of dollars annually for many workers.
The U.S. tax system is progressive, meaning higher earners pay a larger share of their income in taxes. IRS data from 2023 shows that the bottom 50% of taxpayers, those earning under roughly $54,000, contributed just 3% of all federal income taxes despite accounting for about 12% of total adjusted gross income. Bezos’ proposal underscores ongoing debates about tax fairness and income inequality in the U.S., where many argue for relief for lower-income households.
The proposal by Bezos adds to the broader discussion on tax reform and income redistribution in the U.S. The IRS data cited is from 2023, and the interview with CNBC took place recently, marking a notable public stance by one of the country’s wealthiest individuals on tax policy.