Jeff Bezos Advocates for No Federal Income Taxes for Low-Income Earners
On Wednesday, Amazon founder Jeff Bezos expressed that he believes individuals in the bottom half of income earners should not pay any federal income taxes. He contended that in a wealthy nation like the United States, there is simply no justification for taxing those who are already struggling to make ends meet.
In an interview with Andrew Ross Sorkin on CNBC’s “Squawk Box,” Bezos urged a reevaluation of the U.S. tax structure. He highlighted that the top 1% contributes 40% of total tax revenue, whereas the bottom half is responsible for merely 3%—and, possibly, that figure should be zero.
He pointed out that the contribution from low-income individuals is quite minimal for the government. For example, he mentioned a healthcare worker earning about $75,000 annually, stating, “We shouldn’t be asking this nurse in Queens to send money to Washington. They should send her an apology. It really makes no sense.”
During the discussion, Bezos was asked about his connection with President Trump. He mentioned that he has collaborated with every president since Bill Clinton and expressed a desire to advocate for change but was less forthcoming on how taxes would realistically be reduced.
According to a Tax Foundation analysis, the adjusted gross income for the bottom half of taxpayers was nearing $54,000 in 2023, while the top 1% earned at least $676,000. More than 76 million households in the lower-income bracket paid an average of $913 in federal taxes that year. The average tax rate for these earners was around 3.7%, while the top 1% faced a rate of approximately 26.3%.
Bezos touched on a broader conversation about the K-shaped economy, noting that it reflects two diverging economic realities. “There are a lot of people in this country who are doing well, but also many who are struggling,” he acknowledged.
He shared his own family’s narrative and how his adoptive father immigrated from Cuba in the 1960s. Reflecting on his parents’ struggles, he expressed a desire to provide opportunities for those who are currently facing hardships—a kind of hope that perhaps someone might rise to greatness, like Steve Jobs.
Bezos made a strong case for eliminating taxes altogether for low-income individuals, arguing that it could improve opportunities for those in need. He criticized corporate tax loopholes, labeling them as indicative of “crony capitalism” and called for significant reductions in such practices.
However, he didn’t shy away from defending his own tax contributions, emphasizing that raising taxes on himself wouldn’t necessarily aid a teacher in Queens. He noted he has already paid billions in taxes, implying that simply increasing his tax bill may not provide the broader societal benefits intended.
