Jeff Bezos: “The bottom half of [US workers] pay only 3% of the taxes. I think it should be zero.”

Jeff Bezos says millions of lower-income Americans should pay no federal income tax, arguing the current system places too much pressure on workers while contributing relatively little to overall government revenue.

The Amazon founder said he plans to push the idea directly with President Donald Trump and other political leaders, framing the proposal as a way to ease affordability pressures on working households.

Tax-free proposal

Speaking to CNBC, Bezos argued that the bottom half of American earners should effectively be exempt from federal income taxes altogether.

“The bottom half of income earners in this country pay only 3% of the taxes,” Bezos said. “I think it should be zero.”

To illustrate the point, Bezos pointed to a hypothetical nurse in Queens earning $75,000 a year, questioning why someone at that income level should be paying more than $1,000 per month in taxes.

“Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?” Bezos asked. “We shouldn’t be asking this nurse in Queens to send money to Washington.”

The proposal would potentially affect roughly 76 million American households, though Bezos did not outline how the lost revenue would be replaced.

Growing debate

According to IRS data cited in the report, the bottom half of U.S. taxpayers accounted for around 12% of adjusted gross income in 2023, while contributing roughly 3% of all federal income taxes.

CNBC also noted that, once refundable tax credits are included, the bottom 40% of taxpayers already effectively pay little or no federal income tax on average.

The comments arrive as affordability pressures remain a major political issue across the U.S., with rising housing costs, healthcare bills and inflation continuing to squeeze middle- and lower-income households.

Bezos argued that exempting lower earners from federal income tax would represent only “a small amount of money for the government.”

Spending criticism

The billionaire also argued that America’s larger problem is not taxation itself, but government spending inefficiency.

Bezos compared public spending to Amazon’s logistics operation, saying poor management in government systems would be unacceptable in the private sector.

“If we ran Amazon the way New York City runs their school system, your packages would take six weeks to arrive,” Bezos said.

His comments quickly drew criticism online, particularly given longstanding scrutiny over his own tax history and Amazon’s use of corporate tax strategies.

A 2021 ProPublica investigation found Bezos paid no federal income tax in some years after investment losses outweighed reported income.

Bezos acknowledged debates around what constitutes a “fair share” for wealthy Americans, but argued simply increasing taxes on billionaires would not solve deeper structural problems.

Philanthropy questions

The Amazon founder also reiterated plans to give away most of his fortune during his lifetime, though his former wife MacKenzie Scott has already donated substantially more in recent years.

According to Forbes estimates cited in the report, Scott has donated more than $26 billion since 2020, while Bezos and Lauren Sánchez Bezos have donated roughly $4.7 billion over their lifetimes.

Bezos argued that building companies and services that improve daily life can ultimately create a larger societal impact than philanthropy alone.

Sources: Fortune, CNBC, IRS, Tax Foundation, ProPublica, Forbes

This article is made and published by Asger Risom, who may have used AI in the preparation