Jeff Bezos said the bottom half of U.S. earners should pay zero federal income tax during a Wednesday interview on CNBC’s "Squawk Box."
The proposal targets wealth disparity by suggesting that removing the tax burden from low-income families would improve affordability and stimulate economic activity. Bezos said that the current system places an unnecessary financial strain on workers who contribute very little to the overall national revenue.
During the broadcast, Bezos said that the bottom half of earners currently contribute only about three percent [1] of total tax revenue. He suggested that this contribution is negligible enough that it should be eliminated entirely to provide relief to those struggling with the cost of living.
"The bottom half of earners pay only about 3% of all taxes – it should be zero," Bezos said.
To illustrate the impact of current tax rates on middle- and lower-income professionals, Bezos cited the example of a healthcare worker. "Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?" he said.
Bezos linked the elimination of these taxes to broader economic benefits. He said that removing the federal income tax for lower-income Americans could ease financial pressure and encourage entrepreneurship by leaving more liquid capital in the hands of the workforce.
As the founder of Blue Origin and executive chairman of Amazon, Bezos's comments highlight a specific perspective on tax reform that focuses on the redistribution of the tax burden away from the lowest earners, rather than focusing solely on top-bracket adjustments.
“"The bottom half of earners pay only about 3% of all taxes – it should be zero."”
This proposal suggests a shift toward a more progressive tax structure by establishing a higher floor for federal income tax liability. If implemented, such a policy would likely increase the disposable income of millions of low-wage workers, potentially increasing consumer spending, while requiring the U.S. government to find alternative revenue streams or accept a decrease in total tax receipts to maintain public services.
