Top Line
On Wednesday, Jeff Bezos, the billionaire founder of Amazon, suggested that the lower half of earners in the U.S. shouldn’t pay federal income tax. This comment comes as states are considering higher taxes on the wealthiest citizens. He expressed a desire to align with President Trump in pushing for tax cuts.
Important Facts
Bezos pointed out that the bottom 50% of American earners contribute only 3% of total tax revenue, adding, “I think it should be zero.”
According to a recent report, the average income tax rate for 2023 is 14.1%. The top 1% pay an average of 26.3%, while the bottom half, earning around $24,500 annually, face an average tax rate of just 3.7%, based on the latest IRS data from the Tax Foundation.
He further commented that the income tax from the lowest earners is negligible for the government, arguing, “We shouldn’t be asking this nurse from Queens to send money to Washington. The government should send her an apology. It just doesn’t make sense.”
Bezos also highlighted that Amazon workers in New York, who earn about $50,000 a year, shouldn’t be heavily taxed, calling it “ridiculous.”
He reiterated his stance that supporting tax cuts is beneficial, claiming it “actually helps people.”
Important Quotes
Bezos remarked, “There are a lot of people in this country who are doing very well, but there are also a lot of people in this country who are struggling. Some people say we should make the tax system more progressive. Why not start by taxing people like nurses in Queens who make $75,000 a year?”
Amazon’s Low Wages and Job Insecurity
The average hourly wage for Amazon delivery drivers is $19, which is significantly less than the $35 that unionized UPS drivers earn. Research from the Shift Project at Harvard University indicates that if Amazon drivers work 40 hours a week, they earn about $39,520 annually, while 30-hour workers make around $39,640. Alarmingly, about 26% of Amazon drivers struggle with food insecurity, and 33% find it hard to pay utility bills, with most lacking long-term job security.
Forbes Rating
As of Wednesday, Bezos ranks as the fourth richest individual globally, with an estimated net worth of $267.3 billion, following Google co-founders Larry Page and Sergey Brin, and Tesla’s Elon Musk.
Main Background
In recent times, several states have suggested imposing additional taxes on their wealthiest citizens. California’s proposed “billionaire” tax has garnered resistance from wealthy constituents. Prominent figures like Peter Thiel have left the state due to such tax proposals. Meanwhile, some federal lawmakers are advocating for tax relief for low-income earners, such as Senator Cory Booker, who has introduced legislation to make the first $75,000 of income tax-free.
