If Jeff Bezos has his way, half of Americans won’t pay any federal income taxes.
In a television presentation on May 20, the Amazon boss said that the top 1% of US taxpayers pay about 40% of all federal income taxes. The bottom half of taxpayers pay only 3%.
“I don’t think it should be 3%,” Bezos said. “I think it should be zero.”
The world’s fourth richest man was speaking on the CNBC program “Squawk Box.”
Bezos talked about his upbringing: his father was a Cuban immigrant and his mother gave birth when he was 17.
“And he exalted himself,” he said. “And so, I look at that, and I think, you know, I want to make sure that people who are struggling today have the opportunity to do that, too. To push themselves.”
His comments come as some cities and states are proposing higher taxes on the wealthy.
California’s so-called billionaire tax, for example, would raise an estimated $100 billion through a one-time, 5% “wealth” tax on about 200 billionaires.
Some of that state’s most prominent billionaires say they would rather move than pay it.
Bezos: Tax relief would help low-income Americans ‘pull themselves up’
Bezos said the government should help low-income Americans “get ahead” by reducing their income tax burden.
“We can give them a better chance by eliminating their tax bill,” Bezos said. “I don’t want to reduce it, I want to eliminate it. I think there’s something very powerful about zero.”
Bezos said he would advocate for tax relief in Washington, though he did not specify how.
Politically, Bezos’s policy proposals blend elements of liberal and conservative thought.
Liberals and conservatives traditionally advocate lower taxes across the board. President Donald Trump made lowering taxes a signature initiative in both of his terms.
In contrast, progressives and Democrats typically focus on tax relief for low-income Americans and higher taxes for the wealthy.
New Jersey Democrat Senator Cory Booker recently introduced legislation that would provide tax relief for the first $75,000 of income in households filing joint returns by increasing the standard deduction. Tax rates on top earners will increase.
The United States has a progressive income tax system: taxpayers pay a larger share of their income in taxes as their taxable income increases.
Half of Americans already pay 97% of taxes
According to an analysis by the nonpartisan Tax Foundation, the top half of taxpayers pay 97% of all federal income taxes, while the bottom half pays only 3%.
Eliminating the income tax for the bottom half of taxpayers would make tax policy even more progressive: the top half of taxpayers would pay 100% of the tax.
Matt Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy, said Bezos’ proposal “sounds more grandiose than it is.” “The tax code already includes provisions that lower taxes on middle- and low-income families,” he said.
“The real issue with the federal tax system right now is its treatment of the wealthiest Americans — people like Bezos himself,” he said.
According to ITEP research, Amazon could earn $17.4 billion in federal income tax breaks in 2025.
In his CNBC interview, Bezos said that raising taxes on billionaires would not help low-income Americans.
“You can double the taxes I pay, and it won’t help that teacher in Queens, I promise you,” Bezos said.
New York Mayor Zohran Mamdani responded on Twitter: “I know some teachers in Queens who have a different opinion.”
Reporting by Daniel De Vis, USA TODAY/USA TODAY Network via Reuters Connect