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

Amazon executive chairman Jeff Bezos said Wednesday that the bottom half of U.S. earners should pay zero federal income tax. Bezos told CNBC the group accounts for only 3% of total federal income tax revenue. He said the average income tax rate for this group was 3.7% in 2023, compared with 26.3% for the top 1% of taxpayers.

The bottom half of earners paid an average of $913 in federal income taxes that year, according to a Tax Foundation analysis of IRS data. Bezos said the amount collected is small and that the government should not ask lower-wage workers to send money to Washington.

He used the example of a nurse in Queens earning $75,000 a year and an Amazon worker earning $50,000 annually, calling the current tax on them absurd.

“You have a bunch of people in this country who are doing really well, but you have a bunch of people in this country who are struggling. Some people talk about making the tax system more progressive. The bottom half earned 12% of income but paid 3% of taxes. Some states have proposed higher taxes on high earners in recent years. Several billionaires left California after the state considered a one-time 5% tax on residents with assets of at least $1.1 billion.”

Related Proposals Sen.

Corey Booker, D-N.J., introduced the Keep Your Pay Act on March 9, which would make the first $75,000 of income tax-free for joint filers. Booker said the measure would immediately increase take-home pay for working households. Bezos said he would advocate for the zero-tax proposal for lower earners, arguing it would help people facing higher costs for everyday expenses.