Amazon founder Jeff Bezos has floated a proposal to eliminate federal income taxes for the bottom half of U.S. earners, a move he argues would relieve financial burdens on working Americans. In a recent interview, Bezos questioned why lower-income workers, such as a hypothetical nurse earning $75,000 annually, should pay thousands in taxes annually. "The bottom half of income earners in this country pay only 3% of the taxes," Bezos said. "I think it should be zero."
Current Tax Landscape
According to IRS data analyzed by the Tax Foundation, the bottom 50% of taxpayers—those earning roughly under $54,000—accounted for about 12% of total adjusted gross income in 2023 but paid just 3% of federal income taxes. When refundable tax credits are factored in, the bottom 40% of taxpayers already pay effectively no federal income tax on average. Bezos argues that eliminating taxes for this group 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."
Criticism and Context
Bezos’ proposal comes despite his own tax history drawing scrutiny. A 2021 ProPublica investigation revealed that Bezos paid no federal income tax in 2007 and 2011, using tax strategies that dramatically reduced his burden in certain years. His "true tax rate" between 2014 and 2018 was calculated at 0.98%. Bezos maintains that addressing tax loopholes or increasing taxes on the wealthy would not solve broader government inefficiencies, citing New York City’s public school system as an example of mismanagement.
While Bezos plans to advocate for his proposal with political leaders, the debate over fair taxation continues. "We can argue about what the fair share is," he said. "That’s a policy debate, that’s okay."