Photo: MIGUEL J. RODRIGUEZ CARRILLO / AFP / Getty Images
Jeff Bezos, the founder of Amazon, recently proposed that the bottom half of U.S. earners should pay no federal income taxes. In an interview with CNBC on Wednesday (May 20), Bezos highlighted that the top 1% of taxpayers contribute about 40% of all tax revenue, while the bottom half pay only 3%. He argued that the income tax paid by lower earners is "a small amount of money for the government."
Bezos used the example of a nurse in Queens earning $75,000 annually, questioning why such individuals should send money to Washington. He stated, "We shouldn't be asking this nurse in Queens to send money to Washington. They should be sending her an apology."
According to IRS statistics, the bottom half of taxpayers had an adjusted gross income of nearly $54,000 in 2023. Bezos, whose net worth is around $269 billion, believes that not taxing lower-income earners would be more beneficial. He expressed his intention to advocate for this change, though he did not specify how lawmakers might implement it.
Bezos' comments come amid ongoing debates about tax policies. Some Democratic states are exploring higher taxes on the wealthy, and several federal lawmakers have introduced proposals to reduce taxes for lower earners. For instance, Senator Corey Booker proposed the Keep Your Pay Act, which aims to make the first $75,000 of income tax-free for households filing joint returns.
While Bezos' stance has sparked discussions, critics argue that the U.S. tax system is already progressive, with the top 1% paying a significant share of taxes. However, Bezos emphasized the disparities in the current economic landscape, noting the "tale of two economies" where some Americans thrive while others struggle.
For more details, visit CNBC and Business Insider.