Jeff Bezos is pushing a bold new idea for the U.S. tax system: eliminate federal income taxes for the bottom half of American earners.
The billionaire Amazon founder said roughly 76 million U.S. households should no longer have to pay federal income tax, arguing that lower-income workers are carrying a financial burden the government doesn’t really need.
Speaking during a recent interview with CNBC, Bezos said the bottom 50% of income earners currently contribute only about 3% of total federal income tax revenue — and he believes that number should be zero.
“The bottom half of income earners in this country pay only 3% of the taxes,” Bezos said. “I think it should be zero.”
To explain his point, Bezos brought up the example of a nurse living in Queens, New York, earning $75,000 a year. According to Bezos, someone at that income level can end up paying more than $1,000 every month in taxes.
“Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?” Bezos asked during the interview.
He argued that working Americans already dealing with rising costs, inflation, rent, and groceries, shouldn’t be sending money to Washington while struggling to stay financially stable.
The proposal comes as debates over income inequality and billionaire wealth continue to intensify across the United States. Bezos described the economy as increasingly “K-shaped,” where wealthy Americans continue building wealth while many middle- and lower-income households feel squeezed by everyday expenses.
Under the current U.S. tax system, higher earners already pay a larger share of taxes. IRS data analyzed by the Tax Foundation showed that in 2023, the bottom half of taxpayers earned around 12% of total adjusted gross income but paid only 3% of all federal income taxes. The average household in that group paid about $913 in federal income tax.
Bezos also pushed back against politicians who support heavier taxes on billionaires and the wealthy. He argued that simply doubling taxes on rich Americans would not suddenly improve the lives of struggling workers.
Instead, Bezos said the government should focus more on reducing wasteful spending and simplifying what he called an overly complicated tax system.
The comments quickly sparked political debate online, especially as lawmakers in several states continue discussing billionaire taxes and wealth taxes aimed at reducing economic inequality.
