Jeff Bezos has entered the escalating national debate over tax policy with a proposal likely to reverberate through Washington ahead of the 2026 budget cycle: eliminate federal income taxes entirely for the bottom half of American earners.
Speaking during a CNBC interview from Blue Origin's Florida facilities, Bezos argued that low- and middle-income Americans should no longer be required to send federal income tax payments to Washington, framing the current system as unnecessarily burdensome for workers already struggling with rising living costs.
The billionaire entrepreneur also said he intends to press the issue directly with Donald Trump, adding another high-profile corporate voice to the increasingly contentious fiscal debates unfolding under the Trump administration.
"I don't think it should be 3 per cent," Bezos told CNBC's Andrew Ross Sorkin while discussing the share of federal income taxes currently paid by the bottom half of U.S. earners. "I think it should be zero."
He continued: "Zero is a much more powerful number than a small dollar amount."
The remarks immediately triggered sharp reactions from across the political and business spectrum because they combine populist tax relief rhetoric with an argument delivered by one of the world's wealthiest individuals.
Bezos specifically highlighted workers earning between roughly $50,000 and $75,000 annually, including warehouse employees and healthcare workers, as examples of Americans who should retain more of their income.
Referring to an Amazon employee earning around $50,000 per year, Bezos called the existing tax burden "absurd." He then expanded the example to a nurse living in Queens.
"We shouldn't be asking this nurse in Queens to send money to Washington," Bezos said. "They should be sending her an apology. It really makes no sense."
The proposal arrives as policymakers wrestle with widening deficits, stubborn inflation concerns and growing political pressure over affordability ahead of midterm election campaigns.
According to analysis cited during the interview from the Tax Foundation, the bottom 50% of taxpayers currently contribute about 3% of total federal income tax revenue.
The same data showed:
- The bottom half of taxpayers report average gross income around $24,500.
- Their average effective federal income tax rate stands at roughly 3.7%.
- The top 1% face an average effective rate near 26.3%.
- The top 1% contribute approximately 40% of total federal income tax revenue.
Bezos argued that eliminating taxes for lower earners would have limited fiscal impact while offering meaningful financial relief to millions of households coping with housing, healthcare and food costs.
The comments also intersect with a broader ideological shift among some wealthy business leaders who increasingly frame tax relief for lower-income workers as economically stimulative rather than politically partisan.
The reaction online was swift and divided.
Elon Musk responded approvingly with a brief "Bravo" on social media, while progressive figures including New York City Mayor Zohran Kwame Mamdani and billionaire investor Tom Steyer reportedly criticized the proposal amid concerns about federal revenue losses and broader fiscal sustainability.
The debate also lands as several Democratic-led states, including California, continue exploring higher taxes on wealthy residents and corporations to address budget pressures and social spending demands.
