Jeff Bezos, Amazon Executive Chairman, called for zero federal income taxes on the bottom half of American earners. He made the proposal during a CNBC interview on Wednesday. The billionaire entrepreneur questioned why working families face any tax burden. Top 1% of taxpayers pay about 40% of all tax revenue. Meanwhile, the bottom half contributes only 3%.

“I don’t think it should be 3%,” Bezos told CNBC’s Andrew Ross Sorkin. “I think it should be zero.” He emphasized there is something powerful about eliminating taxes completely. The bottom half of taxpayers earned adjusted gross income near $54,000 in 2023. This data comes from the Tax Foundation citing IRS statistics.

Sharp Income Divide Highlights Tax Burden Disparity

Households in the top 1% earned at least $676,000 that same year. The income gap between these groups remains stark. Bezos called the income tax paid by lower earners “a small amount of money for the government.” He offered a hypothetical example to illustrate his point. A healthcare worker making $75,000 annually should not send money to Washington.

“We shouldn’t be asking this nurse in Queens to send money to Washington,” he said. “They should be sending her an apology.” Bezos declared the current system makes no sense. He said he would “advocate” for such a change. However, he did not offer details on implementation. The executive chairman ranks as the world’s fourth-richest person.

Billionaire’s Personal Wealth Adds Context to Tax Debate

Bezos holds a net worth around $269 billion, according to Forbes. His comments arrive as Democratic states explore higher taxes on wealthy individuals. Several federal lawmakers recently introduced proposals to cut taxes for lower earners. Senator Corey Booker of New Jersey proposed the Keep Your Pay Act. This legislation calls for the first $75,000 of income to be tax-free.

The proposal targets households filing joint tax returns. Single filers and heads of households would receive proportional relief. Booker announced the legislation on March 9. He stated this tax cut would transform life for working people. Families could use saved money for everyday expenses. They could address unexpected emergencies or plan for the future.

Average Tax Rates Reveal Seven-Fold Difference

The average income tax rate stood at 14.1% in 2023. This figure comes from Tax Foundation analysis of IRS data. Top 1% of taxpayers paid an average rate of 26.3%. This rate is seven times higher than the 3.7% paid by the bottom half. The disparity highlights the progressive nature of current tax structure. Yet Bezos argues even small taxes hurt lower earners.

Bezos repeatedly criticized taxation on lower-income workers during his interview. He spoke from his Blue Origin rocket facility in Florida. The billionaire described the US in 2026 as “a tale of two economies.” Some people in this country are doing really well. Others struggle with affordability challenges.

K-Shaped Economy Creates Divergent Financial Realities

Bezos nodded to the current K-shaped economy. Many wealthy Americans benefited from a prolonged stock market boom. Rising real estate prices also increased their wealth in recent years. Meanwhile, others faced pressure from stubborn inflation. Onerous interest rates squeezed household budgets. An affordability crisis compounded these challenges.

“Some people talk about making the tax system more progressive,” Bezos said. “How about we start by having the nurse in Queens not pay taxes?” He questioned why working nurses face tax burdens. A nurse earning $75,000 annually could use that money elsewhere. The funds could help with rent, groceries, or other necessities.

Amazon Worker Example Reinforces Zero-Tax Position

Bezos later used another example from his own company. An Amazon worker in New York makes around $50,000 a year. He called the idea of taxing them “absurd.” “Why are you taxing them so much?” he asked. “I really am puzzled by this.” The founder emphasized zero as a psychologically powerful threshold.

When asked about universal basic income, Bezos returned to his nurse analogy. “Instead of universal basic income, how about we stop taxing a nurse making $75,000?” He suggested tax elimination offers a more direct solution. According to the Bureau of Labor Statistics, registered nurses earn differently across regions. Median annual wage for registered nurses in New York, Newark, and Jersey City reaches roughly $120,000.

Broader Tax Debate Includes State-Level Proposals

Vocational nurses with lower education levels make around $75,000. Bezos’ comments join a heated debate over proposed billionaire taxes. California considers a one-time, 5% tax on billionaire net worth. The proposal aims to raise funds for health services. These services target lower-income people facing federal cuts.

The California tax would apply to worldwide net worth. Assets such as stocks, art, businesses, and vehicles would face taxation. Directly held real estate would remain exempt. Such proposals highlight competing visions for tax reform. Some advocates push for higher taxes on the ultra-wealthy. Others like Bezos emphasize relief for working families instead.

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