Amazon Chief Executive Jeff Bezos said on Wednesday that low-income Americans should no longer pay federal income tax, amid growing debate in the US over taxing the wealthy and cost-of-living pressures on the middle class.
“I don't think it should be 3 percent. I think it should be zero,” Bezos said in an interview with CNBC, referring to the share of federal taxes paid by the bottom half of American taxpayers. The top 1% of taxpayers pay about 40% of all income.
The bottom half of American taxpayers had an adjusted gross income of nearly $54,000 in 2023. By comparison, households in the top 1 percent earned at least $676,000 that year.
Bezos said the income tax paid by low-income people is “a small amount for the government” and offered the hypothetical example of a nurse making $75,000 a year.
“We shouldn't be asking this nurse in Queens to send money to Washington. They should be sending her an apology. It just doesn't make any sense,” he said.
Bezos said he would publicly support such a change, but did not provide details on how lawmakers might enact it.
Jeff Bezos is the fourth richest person in the world, with an estimated fortune of about $269 billion, according to Forbes.
Jeff Bezos' statements come as several Democratic-led states are considering introducing higher taxes on the very wealthy.
At the same time, several federal parliamentarians have recently presented proposals to reduce taxes on low-income people.
“Tale of Two Economies”
Although the bottom half of taxpayers bear a lower tax burden, their hardships have increased amid high inflation and growing concerns about the cost of living.
The so-called “K”-shaped economy describes the increasingly different experiences of Americans: High-income households continue to benefit from rising markets and wages, while many lower- and middle-class consumers face price hikes and financial pressures.
Research by the Federal Reserve Bank of New York shows that the expiration of pandemic-era subsidies for low- and middle-income households made a noticeable difference in 2023. More recently, the sharp increase in gasoline prices amid the war with Iran has further accentuated this trend, the researchers found. People with low incomes spend a higher proportion of their income on fuel compared to those with high incomes.
“I think what's happening is kind of a tale of two economies. We have a lot of people in this country who are doing very well, but we also have a lot of people who are struggling,” Jeff Bezos said.
The question of whether the very wealthy pay a “fair” share of taxes compared to those with lower incomes has long been the subject of intense debate in the US.
Opponents of raising taxes on high-income earners often cite the progressive nature of the federal tax system.
