SouthernWorldwide.com – Jeff Bezos, the founder of Amazon, has stated that the lower half of earners in the United States should not be required to pay any federal income tax. He believes that eliminating this tax burden for lower-income individuals could alleviate financial pressures and foster a more entrepreneurial environment.
Currently, the bottom half of American taxpayers contribute approximately 3% of the nation’s federal income taxes. Bezos suggested that this share should be reduced to “zero.” Bezos, who transitioned from his role as Amazon’s CEO in 2021, is recognized as the fourth wealthiest individual globally, with his net worth estimated at $279 billion by the Bloomberg Billionaires Index.
Data from the Tax Foundation, a nonpartisan organization focused on tax policy, indicates that the top 1% of households are responsible for about 40% of all federal income taxes collected.
Bezos’ remarks come at a time when some lawmakers at both the state and federal levels are actively advocating for the implementation of new wealth taxes specifically targeting millionaires and billionaires. Concurrently, a significant tax and spending bill proposed by Republicans, described as “big, beautiful,” includes tax reductions that critics argue disproportionately benefit the wealthiest segments of the population.
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Bezos articulated that by removing the tax obligations for those currently facing financial hardship, the government could provide them with a more favorable opportunity to achieve entrepreneurial success.
“Maybe they’re going to be the next Steve Jobs,” Bezos remarked, drawing a parallel to the late co-founder of Apple.
Zero Taxes, Not Just Lower Taxes
Bezos was explicit in clarifying that his proposal is not about reducing income taxes for low-income families, but rather about their complete elimination.
“I don’t want to reduce it, I want to eliminate it,” he told CNBC’s Andrew Ross Sorkin. “I think there’s something very powerful about zero. Zero is a better number than $1.”
Bezos shared his perspective as several Democratic-led states are considering imposing taxes on their ultra-wealthy residents. In the previous month, proponents of a ballot initiative aimed at taxing California’s billionaires successfully gathered enough signatures to place the measure on the November ballot. This proposed legislation seeks to enact a one-time 5% tax on individuals residing in California whose net worth exceeds $1 billion.
In March of 2026, U.S. Senator Elizabeth Warren, a Democrat from Massachusetts, introduced the Ultra-Millionaire Tax Act of 2026. This bill proposes an annual tax of 2% on households and trusts valued at over $50 million, with an additional 1% tax applied to the wealth of billionaires. Furthermore, it includes a provision for a 40% “exit tax” for individuals with a net worth exceeding $50 million who choose to renounce their U.S. citizenship.
In addition, Senator Cory Booker of New Jersey has put forth the Keep Your Pay Act. This proposal aims to exempt the first $75,000 of income from taxation for households filing their taxes jointly.
Within the existing federal income tax framework, the bottom half of taxpayers—defined as those earning less than $53,801 annually—faced an average income tax rate of 3.7% in 2023, according to data from the Tax Foundation. In contrast, the top 1% of earners bore an average tax rate of 26.3%.
