Jeff Bezos proposes zero federal income tax for bottom half of US earners

Jeff Bezos has proposed eliminating federal income taxes for the bottom half of American earners. Speaking to CNBC, the Amazon founder argued that this group contributes a disproportionately small amount to federal revenue, accounting for only approximately 3% of federal individual income taxes despite representing about 12% of total adjusted gross income.

Bezos cited a hypothetical nurse earning $75,000 a year as an example of a worker who should not be burdened by significant tax payments. While the $75,000 figure sits above the threshold used by the Tax Foundation to define the bottom 50% of taxpayers (those with adjusted gross incomes below $53,801), the core of his argument remains that lower earners should retain more of their income.

Data from the Tax Foundation indicates that in 2023, the bottom half of taxpayers paid an average federal income tax bill of about $913. Bezos suggested that the issue of government finances is more closely tied to inefficient spending rather than the tax rates paid by billionaires. Implementing such a change would require Congressional action to determine eligibility and address potential revenue gaps.