Amazon founder Jeff Bezos told CNBC on Wednesday that the bottom half of U.S. earners should pay no federal income tax, arguing that eliminating these taxes might ease monetary pressure and encourage entrepreneurship.
The bottom half of U.S. taxpayers at present pays about 3% of federal income taxes, a share Bezos mentioned should fall to “zero.” Bezos, who stepped again as Amazon’s CEO in 2021, is the world’s fourth-richest particular person, with a fortune valued at $279 billion, based on the Bloomberg Billionaires Index.
The high 1% of households pay about 40% of federal income taxes, based on the Tax Foundation, a nonpartisan tax coverage institute.
Bezos’ feedback come amid renewed pushes from some Democratic state and federal lawmakers to institute new wealth taxes geared toward millionaires and billionaires. At the identical time, the Republicans’ “big, beautiful” tax and spending invoice included tax breaks that critics say predominantly assist the wealthiest households.
The authorities may give “people who are struggling today” a greater probability at entrepreneurial success “by eliminating their tax bill,” Bezos mentioned.
“Maybe they’re going to be the next Steve Jobs,” Bezos mentioned, referring to the late co-founder of Apple.
Zero taxes, not decrease taxes
Bezos made it clear that he isn’t calling for a discount in income tax for lower-income households.
“I don’t want to reduce it, I want to eliminate it,” he advised CNBC’s Andrew Ross Sorkin. “I think there’s something very powerful about zero. Zero is a better number than $1.”
Bezos said his views as some Democratic states are proposing taxes on ultra-wealthy residents. Last month, proponents of a proposal to tax California billionaires obtained sufficient signatures for the measure to look on the November poll. The measure would impose a one-time 5% tax on Californians with internet worths of $1 billion or extra.
In March, U.S. Sen. Elizabeth Warren, a Massachusetts Democrat, launched the Ultra-Millionaire Tax Act of 2026. The invoice requires an annual 2% tax on households and trusts price greater than $50 million, plus an additional 1% tax on billionaires’ wealth. It additionally proposes a 40% “exit tax” on people price greater than $50 million who resign their American citizenship.
Additionally, Sen. Cory Booker of New Jersey has proposed the Keep Your Pay Act, which might get rid of taxes on the primary $75,000 for households submitting joint tax returns.
Under the federal income-tax system, the bottom half of taxpayers — these making lower than $53,801 yearly — confronted a median income-tax charge of 3.7% in 2023, Tax Foundation knowledge reveals. The high 1% paid a median charge of 26.3%.